S T A T E O F N E W Y O R K
________________________________________________________________________
170
2015-2016 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2015
___________
Introduced by M. of A. ROZIC, CAMARA, CLARK, COLTON, CUSICK, GOTTFRIED,
HOOPER, MOSLEY, OTIS, STIRPE -- Multi-Sponsored by -- M. of A. ABBATE,
ARROYO, COOK, LUPINACCI, RAIA, RIVERA, ROBERTS, 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".
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;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01723-01-5
A. 170 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.
S 3. This act shall take effect immediately.