S T A T E   O F   N E W   Y O R K
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                                   1235
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2017
                                ___________
 
 Introduced by M. of A. ROZIC, COLTON, CUSICK, GOTTFRIED, HOOPER, MOSLEY,
   OTIS,  STIRPE  -- Multi-Sponsored by -- M. of A. ABBATE, ARROYO, COOK,
   LUPINACCI, RAIA, RIVERA, SKARTADOS -- read once and  referred  to  the
   Committee on Ways and Means
 
 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".
   § 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;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00413-01-7
              

 A. 1235                             2
 
   (C) EXPENSES RELATED TO PREPARATION INCLUDING  TUTORIAL  SERVICES  AND
 PREPARATION CLASSES FOR ANY EXAM DESCRIBED IN SUBPARAGRAPH (A) OR (B) OF
 THIS PARAGRAPH;
   (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.
   § 3. This act shall take effect immediately.