S T A T E O F N E W Y O R K
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5749
2009-2010 Regular Sessions
I N A S S E M B L Y
February 19, 2009
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Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing an income tax
credit for qualified elementary education, secondary education and
home instruction expenses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 606 of the tax law is amended by adding a new
subsection (qq) to read as follows:
(QQ) CREDIT FOR QUALIFIED ELEMENTARY EDUCATION, SECONDARY EDUCATION,
AND HOME INSTRUCTION EXPENSES. (1) FOR PURPOSES OF THIS SUBSECTION:
(A) "ELIGIBLE DEPENDENT" SHALL MEAN ANY INDIVIDUAL WHO IS A DEPENDENT
OF THE TAXPAYER WITH RESPECT TO WHOM AN EXEMPTION IS ALLOWED UNDER
SECTION ONE HUNDRED FIFTY-TWO OF THE INTERNAL REVENUE CODE.
(B) "QUALIFIED ELEMENTARY AND SECONDARY EDUCATIONAL INSTITUTIONS"
SHALL MEAN:
(I) ANY ELEMENTARY OR SECONDARY SCHOOL OF A PUBLIC SCHOOL DISTRICT
LOCATED IN THIS STATE HOWEVER CREATED; AND
(II) ANY NON-PROFIT ELEMENTARY OR SECONDARY SCHOOL IN THIS STATE WHICH
(I) PROVIDES INSTRUCTION IN ACCORDANCE WITH SECTION THIRTY-TWO HUNDRED
FOUR OF THE EDUCATION LAW, (II) IS ENTITLED TO TOTAL EXEMPTION FROM
FEDERAL TAXATION UNDER SECTION FIVE HUNDRED ONE (A) AND FIVE HUNDRED ONE
(C)(3) OF THE FEDERAL INTERNAL REVENUE CODE, (III) HAS NOT BEEN FOUND IN
VIOLATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF NINETEEN HUNDRED
SIXTY-FOUR, 78 STAT. 252, 42 USC SECTION 2000 (D), AS IT MAY BE AMENDED
FROM TIME TO TIME. THE COMMISSIONER OF EDUCATION SHALL FURNISH TO THE
DEPARTMENT BY FEBRUARY FIRST OF EACH YEAR, A CERTIFIED LIST OF NON-PUBL-
IC SCHOOLS WHICH COMPLY WITH ITEM (I) OF THIS CLAUSE FOR THE PRECEDING
CALENDAR YEAR AND SHALL PROVIDE SUCH OTHER ASSISTANCE WITH RESPECT TO
WHETHER NON-PUBLIC SCHOOLS SHOULD COME WITHIN SUCH ITEM (I) AS THE
DEPARTMENT MAY REQUIRE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08952-01-9
A. 5749 2
(C) "QUALIFIED TAXPAYER" SHALL MEAN A RESIDENT INDIVIDUAL OF THE
STATE, WHOSE ADJUSTED GROSS INCOME DOES NOT EXCEED THOSE LIMITS SET
FORTH IN PARAGRAPH TWO OF THIS SUBSECTION FOR THE TAXABLE YEAR AND WHO
IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE OR, IN THE
CASE OF A HUSBAND AND WIFE WHO FILE A JOINT RETURN OR WHO FILE A JOINT
FEDERAL RETURN BUT MUST DETERMINE THEIR NEW YORK TAXES SEPARATELY, THEIR
COMBINED ADJUSTED GROSS INCOME SHALL NOT EXCEED THOSE LIMITS SET FORTH
IN PARAGRAPH TWO OF THIS SUBSECTION FOR THE TAXABLE YEAR AND HAS QUALI-
FIED EDUCATION EXPENSES FOR THE TAXABLE YEAR.
(D) "HOME INSTRUCTION" SHALL MEAN INSTRUCTION PROVIDED BY A PARENT OR
LEGAL GUARDIAN IN A SETTING OTHER THAN A PUBLIC SCHOOL THAT IS SUBSTAN-
TIALLY EQUIVALENT TO THE INSTRUCTION GIVEN TO MINORS OF LIKE AGE AND
ATTAINMENTS AT THE PUBLIC SCHOOLS OF THE CITY OR DISTRICT WHERE THE
MINOR RESIDES SO AS TO COMPLY WITH SUBDIVISION TWO OF SECTION THIRTY-TWO
HUNDRED FOUR OF THE EDUCATION LAW.
(E) "FEES AND TUITION" SHALL MEAN FEES OR TUITION FOR INSTRUCTION FOR
ELIGIBLE DEPENDENTS FIRST ENROLLED IN KINDERGARTEN BEGINNING IN THE TWO
THOUSAND EIGHT -- TWO THOUSAND NINE SCHOOL YEAR AND FOR INSTRUCTION IN
THE SUCCESSIVE GRADES THEREAFTER.
(F) "QUALIFIED EDUCATION EXPENSES" SHALL MEAN:
(I) FEES OR TUITION FOR INSTRUCTION, INCLUDING TUTORING, ACADEMIC
ENRICHMENT OR ACADEMIC SUMMER CAMPS IN GRADE OR AGE APPROPRIATE CURRIC-
ULA THAT SUPPLEMENT CURRICULA AND INSTRUCTION AVAILABLE DURING THE REGU-
LAR SCHOOL YEAR, THAT ASSISTS A DEPENDENT TO IMPROVE KNOWLEDGE OF CORE
CURRICULUM AREAS OR TO EXPAND KNOWLEDGE AND SKILLS;
(II) EXPENSES FOR TEXTBOOKS, INCLUDING BOOKS AND OTHER INSTRUCTIONAL
MATERIALS AND EQUIPMENT USED IN QUALIFIED ELEMENTARY AND SECONDARY
INSTITUTIONS AND HOME INSTRUCTION. "TEXTBOOKS" DOES NOT INCLUDE BOOKS OR
MATERIALS FOR EXTRACURRICULAR ACTIVITIES INCLUDING SPORTING EVENTS,
MUSICAL OR DRAMATIC EVENTS, SPEECH ACTIVITIES, DRIVER'S EDUCATION, OR
SIMILAR PROGRAMS;
(III) EDUCATIONAL SOFTWARE THAT ASSISTS A DEPENDENT TO IMPROVE KNOW-
LEDGE OF CORE CURRICULUM AREAS OR TO EXPAND KNOWLEDGE AND SKILLS
PURCHASED FOR USE IN THE TAXPAYER'S HOME AND NOT USED IN A TRADE OR
BUSINESS REGARDLESS OF WHETHER SUCH SOFTWARE IS REQUIRED BY THE DEPEN-
DENT'S QUALIFIED ELEMENTARY OR SECONDARY INSTITUTION OR COURSE OF HOME
INSTRUCTION; AND
(IV) EXPENSES FOR SPECIAL EDUCATION EVALUATION SERVICES AND PROGRAMS.
(2) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE FOR QUALIFIED EDUCATIONAL EXPENSES OF DEPENDENTS
ATTENDING QUALIFIED ELEMENTARY AND SECONDARY EDUCATIONAL INSTITUTIONS OR
RECEIVING HOME INSTRUCTION, PROVIDED, HOWEVER, THAT THE AMOUNT OF SUCH
CREDIT SHALL NOT EXCEED THE TAX IMPOSED BY SECTION SIX HUNDRED ONE OF
THIS PART, FOR THE TAXABLE YEAR. IF THE CREDIT EXCEEDS THE TAX AS SO
REDUCED, THE TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A
CERTIFICATE OF THE COMMISSIONER, SHALL PAY TO THE TAXPAYER AS AN OVER-
PAYMENT, WITHOUT INTEREST, THE AMOUNT OF SUCH EXCESS. FOR EACH ELIGIBLE
DEPENDENT ATTENDING GRADES KINDERGARTEN THROUGH TWELVE AT A QUALIFIED
ELEMENTARY OR SECONDARY EDUCATIONAL INSTITUTION OR RECEIVING HOME
INSTRUCTION WHO INCURS QUALIFIED EDUCATIONAL EXPENSES PURSUANT TO THIS
SUBSECTION, THE MAXIMUM CREDIT SHALL NOT EXCEED THE AMOUNT DETERMINED IN
ACCORDANCE WITH THE FOLLOWING TABLES:
(A) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1, 2009:
IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
INCOME IS: DEPENDENT SHALL BE:
A. 5749 3
NOT OVER $39,999 $3,500
OVER $40,000 BUT NOT OVER $3,200
$59,999
OVER $60,000 BUT NOT OVER $2,900
$79,999
OVER $80,000 BUT NOT OVER $2,600
$99,999
(B) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPH
(A), FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1, 2010:
IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
INCOME IS: DEPENDENT SHALL BE:
OVER $100,000 BUT NOT OVER $2,300
$109,999
(C) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPHS
(A) AND (B), FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1, 2011:
IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
INCOME IS: DEPENDENT SHALL BE:
OVER $110,000 BUT NOT OVER $2,000
$119,999
(D) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPHS
(A), (B) AND (C) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1,
2012:
IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
INCOME IS: DEPENDENT SHALL BE:
OVER $120,000 BUT NOT OVER $1,700
$129,999
(E) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPHS
(A), (B), (C) AND (D) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY
1, 2013:
IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
INCOME IS: DEPENDENT SHALL BE:
OVER $130,000 BUT NOT OVER $1,400
$139,999
(F) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPHS
(A), (B), (C), (D) AND (E) FOR TAXABLE YEARS BEGINNING ON AND AFTER
JANUARY 1, 2014:
IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
INCOME IS: DEPENDENT SHALL BE:
OVER $140,000 BUT NOT OVER $1,100
$149,999
(3) SUCH CREDIT SHALL BE CLEARLY SPECIFIED AND A LINE ENTITLED "QUALI-
FIED EDUCATION EXPENSE CREDIT" SHALL BE PROVIDED ON RETURNS REQUIRED
PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE.
(4) IF A TAXPAYER'S DEPENDENT CHANGES HIS OR HER STATUS DURING A TAXA-
BLE YEAR, SO AS TO BE AN ELIGIBLE DEPENDENT FOR LESS THAN THE FULL TAXA-
A. 5749 4
BLE YEAR, OR ATTENDS AN INSTITUTION OTHER THAN A QUALIFIED ELEMENTARY OR
SECONDARY EDUCATIONAL INSTITUTION OR DOES NOT RECEIVE HOME INSTRUCTION
FOR SOME PORTION OF SUCH TAXABLE YEAR, THEN THE CREDIT ALLOWED PURSUANT
TO THIS SUBSECTION SHALL BE COMPUTED IN SUCH MANNER AS THE DEPARTMENT
MAY, BY REGULATION, PRESCRIBE IN ORDER TO PROPERLY REFLECT THE CREDIT OR
PORTION THEREOF ATTRIBUTABLE TO SUCH TAXABLE YEAR.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.