S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4891

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2013
                               ___________

Introduced  by M. of A. KOLB, OAKS, REILICH, WALTER, MONTESANO, PALMESA-
  NO, P. LOPEZ, RAIA, HAWLEY, BARCLAY, KEARNS -- Multi-Sponsored  by  --
  M.  of  A. CERETTO, LOSQUADRO, McLAUGHLIN -- read once and referred to
  the Committee on Ways and Means

AN ACT to amend the tax law, in relation to a  tuition  tax  credit  and
  increasing the amount of an allowable deduction (Part A); and to amend
  the  tax law, in relation to reducing income by the amount of interest
  paid for student loans (Part B)

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act enacts into law components of legislation relating
to  Retain-NY.  Each component is wholly contained within a Part identi-
fied as Parts A through  B.  The  effective  date  for  each  particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing  the  effective date of the Part, which makes reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.

                                 PART A

  Section  1.  Subparagraph  (A)  of  paragraph  2  of subsection (t) of
section 606 of the tax law, as amended by section 1 of part N of chapter
85 of the laws of 2002, is amended to read as follows:
  (A) The term "allowable  college  tuition  expenses"  shall  mean  the
amount  of  qualified college tuition expenses of eligible students paid
by the taxpayer during the taxable  year[,].  THE  AMOUNT  OF  QUALIFIED
COLLEGE  TUITION EXPENSES SHALL BE limited [to] AS FOLLOWS:  FOR TAXABLE
YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO THOUSAND THIRTEEN, ten

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08807-01-3
              

A. 4891                             2

thousand dollars for each such student, FOR TAXABLE YEARS  BEGINNING  IN
OR AFTER TWO THOUSAND THIRTEEN, FOURTEEN THOUSAND SIXTY DOLLARS FOR EACH
SUCH STUDENT;
  S  2.  Paragraph 4 of subsection (t) of section 606 of the tax law, as
added by section 1 of part DD of chapter 63 of  the  laws  of  2000,  is
amended to read as follows:
  (4)  Amount of credit. [If allowable college tuition expenses are less
than five thousand dollars, the amount of the credit provided under this
subsection shall be equal to the applicable percentage of the lesser  of
allowable  college tuition expenses or two hundred dollars. If allowable
college tuition expenses are five thousand dollars or more,  the  amount
of  the  credit  provided  under  this  subsection shall be equal to the
applicable percentage of the allowable college tuition  expenses  multi-
plied  by four percent.] THE AMOUNT OF THE CREDIT SHALL BE DETERMINED IN
ACCORDANCE WITH THE FOLLOWING SCHEDULES:
  (A) FOR TAXABLE YEARS BEGINNING AFTER  TWO  THOUSAND  AND  BEFORE  TWO
THOUSAND THIRTEEN:
IF ALLOWABLE COLLEGE TUITION
EXPENSES ARE:                        THE TAX CREDIT IS EQUAL TO:
LESS THAN FIVE THOUSAND DOLLARS      THE APPLICABLE PERCENTAGE OF THE
                                     LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR TWO HUNDRED
                                     DOLLARS
FIVE THOUSAND DOLLARS OR MORE        THE APPLICABLE PERCENTAGE
                                     OF ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT

  (B) FOR TAXABLE YEARS BEGINNING IN OR AFTER TWO THOUSAND THIRTEEN:
IF ALLOWABLE COLLEGE TUITION
EXPENSES ARE:                        THE TAX CREDIT IS EQUAL TO:
LESS THAN SEVEN THOUSAND THIRTY      THE LESSER OF ALLOWABLE COLLEGE
DOLLARS                              TUITION EXPENSES OR TWO HUNDRED
                                     EIGHTY DOLLARS
SEVEN THOUSAND THIRTY DOLLARS        THE ALLOWABLE COLLEGE TUITION
OR MORE                              EXPENSES MULTIPLIED BY FOUR PERCENT

  Such  applicable  percentage  shall be twenty-five percent for taxable
years beginning in two thousand one, fifty  percent  for  taxable  years
beginning  in  two  thousand two, seventy-five percent for taxable years
beginning in two thousand three and  one  hundred  percent  for  taxable
years beginning after two thousand three.
  S 3. Subsection (t) of section 606 of the tax law is amended by adding
a new paragraph 4-a to read as follows:
  (4-A)  INFLATION  ADJUSTMENT.  (A)  FOR  TAXABLE YEARS BEGINNING IN OR
AFTER TWO THOUSAND FOURTEEN, THE DOLLAR AMOUNTS IN SUBPARAGRAPH  (A)  OF
PARAGRAPH  TWO AND PARAGRAPH FOUR OF THIS SUBSECTION SHALL BE MULTIPLIED
BY ONE PLUS THE INFLATION ADJUSTMENT.
  (B) THE INFLATION ADJUSTMENT FOR ANY TAX YEAR SHALL BE THE PERCENTAGE,
IF ANY, BY WHICH THE HIGHER  EDUCATION  PRICE  INDEX  FOR  THE  ACADEMIC
FISCAL  YEAR  ENDING  IN  THE IMMEDIATELY PRECEDING TAX YEAR EXCEEDS THE
HIGHER EDUCATION PRICE INDEX FOR THE ACADEMIC FISCAL  YEAR  ENDING  JUNE
TWO  THOUSAND  THIRTEEN.  FOR THE PURPOSES OF THIS PARAGRAPH, THE HIGHER
EDUCATION PRICE INDEX MEANS THE HIGHER EDUCATION PRICE  INDEX  PUBLISHED
BY THE COMMON FUND INSTITUTE.

A. 4891                             3

  (C) IF THE PRODUCT OF THE AMOUNTS IN SUBPARAGRAPH (A) AND SUBPARAGRAPH
(B)  OF  THIS PARAGRAPH IS NOT A MULTIPLE OF FIVE DOLLARS, SUCH INCREASE
SHALL BE ROUNDED TO THE NEXT MULTIPLE OF FIVE DOLLARS.
  S 4. This act shall take effect immediately.

                                 PART B

  Section  1. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 39 to read as follows:
  (39) FOR TAX YEARS COMMENCING AFTER DECEMBER FIRST, TWO THOUSAND THIR-
TEEN, FOR TAXPAYERS, ALL INTEREST PAID ON STUDENT LOANS. FOR PURPOSES OF
THIS PARAGRAPH "STUDENT LOAN" MEANS A LOAN TO A STUDENT FROM A LENDER TO
HELP PAY FOR THE COST OF POST-SECONDARY EDUCATION  AT  A  POST-SECONDARY
SCHOOL.  FOR  PURPOSES  OF THIS PARAGRAPH "LENDER" MEANS A BANK, SAVINGS
AND LOAN ASSOCIATION, CREDIT UNION,  PENSION  FUND,  INSURANCE  COMPANY,
SCHOOL, OR STATE LENDING AGENCY.
  S 2. This act shall take effect immediately.
  S 2. Severability. If any clause, sentence, paragraph, section or part
of  this act shall be adjudged by any court of competent jurisdiction to
be invalid and after exhaustion of  all  further  judicial  review,  the
judgment  shall not affect, impair, or invalidate the remainder thereof,
but shall be confined in its operation to the  clause,  sentence,  para-
graph,  section or part of this act directly involved in the controversy
in which the judgment shall have been rendered.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through B of this act shall be
as specifically set forth in the last section of such Parts.