senate Bill S7710

2013-2014 Legislative Session

Relates to creating a college preparation expense tax credit

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 02, 2014 referred to investigations and government operations

S7710 - Bill Details

See Assembly Version of this Bill:
A9783A
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L

S7710 - Bill Texts

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Creates a college preparation expense tax credit for up to three year's per child/individual for up to $500 per year for qualified college preparation expenses.

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BILL NUMBER:S7710

TITLE OF BILL: An act to amend the tax law, in relation to
establishing the college preparation tax credit act

PURPOSE: To help families meet the costs of college preparation by
allowing them to qualify for a tax credit of up to five hundred
dollars per child.

SUMMARY OF PROVISIONS: Section I titles the bill.

Section II amends section 606 of the tax law by adding a new
subsection (ccc) which allows a resident taxpayer a credit of up to
five hundred dollars per child for qualified college preparation
expenses paid or incurred by the taxpayer during a taxable year.

Section III sets forth the effective date.

JUSTIFICATION: College affordability is an issue that working and
middle class families continue to struggle with as the expenses for
college preparation continue to skyrocket. The costs incurred during
the application process often become a financial burden for families
who cannot afford to pay for admission tests such as the SAT and the
ACT and the preparation courses offered for such tests.

This bill would provide these families with the option to qualify for
a tax credit of up to five hundred dollars per child for college
preparation expenses paid or incurred during a taxable year. The term
"qualified" would apply to the fees required to take the SAT, the ACT,
SAT subject tests, Advanced Placement (AP) tests, preparation classes,
and admission applications. With tuition costs rising, it is important
to provide these families with some form of financial relief as they
work to ensure the academic success of their children.

LEGISLATIVE HISTORY: This is a new bill in the Senate.

FISCAL IMPACT ON THE STATE: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.

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                    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.

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