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

                                  7710

                            I N  S E N A T E

                              June 2, 2014
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation  to  establishing  the  college
  preparation tax credit act

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

  Section 1. This act shall be known and may be cited  as  the  "college
preparation tax credit act".
  S  2. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) COLLEGE PREPARATION EXPENSE  CREDIT.  (1)  A  RESIDENT  TAXPAYER
SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
ALLOWABLE COLLEGE PREPARATION EXPENSES. EACH TAXABLE YEAR, A  CREDIT  OF
UP  TO  FIVE  HUNDRED  DOLLARS  PER CHILD SHALL BE ALLOWED FOR QUALIFIED
COLLEGE PREPARATION EXPENSES PAID OR INCURRED  BY  THE  TAXPAYER  DURING
SUCH  TAXABLE  YEAR. NO CREDIT SHALL BE ALLOWED FOR ANY EXPENSES PAID OR
INCURRED DURING THE TAXABLE YEAR WITH RESPECT TO ANY INDIVIDUAL FOR WHOM
AN ELECTION IS NOT IN EFFECT UNDER  THIS  SUBSECTION  FOR  SUCH  TAXABLE
YEAR.  AN  ELECTION  MAY  NOT  BE  MADE  FOR ANY TAXABLE YEAR IF SUCH AN
ELECTION IS IN EFFECT WITH RESPECT TO  SUCH  INDIVIDUAL  FOR  ANY  THREE
PRIOR TAXABLE YEARS.
  (2)  QUALIFIED  COLLEGE  PREPARATION  EXPENSES.  FOR  PURPOSES OF THIS
SUBSECTION, THE TERM  "QUALIFIED  COLLEGE  PREPARATION  EXPENSES"  MEANS
AMOUNTS PAID OR INCURRED FOR:
  (A)  FEES  REQUIRED FOR TAKING ANY ADVANCED PLACEMENT OR INTERNATIONAL
BACCALAUREATE EXAM;
  (B) FEES REQUIRED FOR TAKING THE SAT, THE  ACT,  OR  ANY  SAT  SUBJECT
TEST;
  (C)  EXPENSES  RELATED  TO PREPARATION INCLUDING TUTORIAL SERVICES AND
PREPARATION CLASSES FOR ANY EXAM DESCRIBED IN SUBPARAGRAPH (A) OR (B) OF
THIS PARAGRAPH;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15301-02-4

              

S. 7710                             2

  (D) FEES AND EXPENSES RELATED TO APPLICATIONS FOR ADMISSION TO  PURSUE
A  POSTSECONDARY COURSE OF STUDY AT AN ELIGIBLE EDUCATIONAL INSTITUTION;
AND
  (E)  SUCH  OTHER  SIMILAR EXPENSES AND FEES AS THE COMMISSIONER MAY BY
REGULATION PRESCRIBE.
  (3) TREATMENT OF EXPENSES PAID BY DEPENDENT. IF A DEDUCTION UNDER THIS
SUBSECTION WITH RESPECT TO AN INDIVIDUAL IS ALLOWED TO ANOTHER  TAXPAYER
FOR A TAXABLE YEAR BEGINNING IN THE CALENDAR YEAR IN WHICH SUCH INDIVID-
UAL'S TAXABLE YEAR BEGINS:
  (A)  NO CREDIT SHALL BE ALLOWED UNDER PARAGRAPH ONE OF THIS SUBSECTION
TO SUCH INDIVIDUAL FOR SUCH INDIVIDUAL'S TAXABLE YEAR; AND
  (B) QUALIFIED COLLEGE PREPARATION EXPENSES  PAID  BY  SUCH  INDIVIDUAL
DURING  SUCH  INDIVIDUAL'S TAXABLE YEAR SHALL BE TREATED FOR PURPOSES OF
THIS SUBSECTION AS PAID BY SUCH OTHER TAXPAYER.
  S 3. This act shall take effect immediately.