NY State Senate Bill 2017-S2882

Senate Bill S2882

2017-2018 Legislative Session

Exempts from state income taxation the first $250,000 earned by four-year college graduates or the first $150,000 earned by two-year graduates

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
Jan 18, 2017	referred to investigations and government operations

2017-S2882 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S360
2021-2022: S168
2023-2024: S91

2017-S2882 (ACTIVE) - Summary

Enacts the graduate outreach assistance law to exempt from state income taxation the first two hundred fifty thousand dollars, with a fifty thousand dollar cap per year, earned by a four-year college graduate and the first one hundred fifty thousand dollars, with a twenty-five thousand dollar cap per year, earned by a two-year college graduate.

2017-S2882 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2882

 TITLE OF BILL :  An act to amend the tax law, in relation to enacting
the graduate outreach assistance law to exempt from state income
taxation the first two hundred fifty thousand dollars earned by a
college graduate

 PURPOSE OR GENERAL IDEA OF BILL :

This bill exempts four-year college graduates from state income tax on
the first $250,000 earned after graduation, with a maximum of $50,000
being claimed each year. Further this bill exempts two-year college
graduates from state income tax on the first $150,000 earned after
graduation, with a maximum of $25,000 being claimed each year.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1. This act shall be known as the "graduate outreach
assistance law."

Section 2. Paragraph 3 of subsection (a) of section 605 of the tax
law, as added by Chapter 28 of the laws of 1987 is amended to read as
follows:

(3) Accounting methods (A) A taxpayer's method of accounting under
this article shall be the same as his/her method of accounting for

federal income tax purposes, with the exception of the provisions of
subparagraph (B) of this paragraph. In the absence of any method of
accounting for federal income tax purposes, the New York taxable
income shall be computed under such method as in the opinion of the
state tax commission clearly reflects income.

(B) For the purposes of computing New York State taxable income, a
taxpayer shall not be required to include in such computation the
first two hundred and fifty thousand dollars he or she earns following
graduation from any college or university having attained a four year
degree or higher or first one hundred and fifty thousand dollars he or
she earns following graduation with a two ear degree.

 JUSTIFICATION :

This proposal will provide an incentive for college graduates to stay
or return to New York after graduating from college. According to the
United States Census, from 1995-2000, 119,666 young, single and
college educated New Yorkers moved to other states. The Post-
secondary Education Opportunity's study of college migration found
that New York loses 13,072 more graduates each year than it attracts.

By not taxing the first $250,000 or $150,000 respectively, a person
earns in their lifetime, it will make it easier for young people to be
able to accept and live on an entry-level salary. They will be better
able to payoff student loans, save for a house, buy a car and have
more discretionary income to spend. The more they spend in New York,
the more they help our economy.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

To be determined

 EFFECTIVE DATE :
This act shall take effect immediately

2017-S2882 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2882
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2017
                                ___________
 
 Introduced  by  Sen. TEDISCO -- 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  enacting  the  graduate
   outreach assistance law to exempt from state income taxation the first
   two hundred fifty thousand dollars earned by a college graduate
 
   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  "graduate
 outreach assistance law".
   §  2.  Paragraph 3 of subsection (a) of section 605 of the tax law, as
 added by chapter 28 of the laws of 1987, is amended to read as follows:
   (3) Accounting methods. (A) A taxpayer's method  of  accounting  under
 this  article  shall  be the same as his OR HER method of accounting for
 federal income tax purposes, WITH THE EXCEPTION  OF  THE  PROVISIONS  OF
 SUBPARAGRAPH  (B)  OF  THIS PARAGRAPH.   In the absence of any method of
 accounting for federal income tax  purposes,  New  York  taxable  income
 shall be computed under such method as in the opinion of the tax commis-
 sion clearly reflects income.
   (B)  FOR  THE PURPOSE OF COMPUTING NEW YORK TAXABLE INCOME, A TAXPAYER
 SHALL NOT BE REQUIRED TO INCLUDE  IN  SUCH  COMPUTATION  THE  FIRST  TWO
 HUNDRED FIFTY THOUSAND DOLLARS, WITH A CAP OF FIFTY THOUSAND DOLLARS PER
 TAXABLE  YEAR,  HE OR SHE EARNS FOLLOWING GRADUATION FROM ANY COLLEGE OR
 UNIVERSITY HAVING ATTAINED A FOUR-YEAR DEGREE OR HIGHER,  OR  THE  FIRST
 ONE  HUNDRED  FIFTY THOUSAND DOLLARS, WITH A CAP OF TWENTY-FIVE THOUSAND
 DOLLARS PER TAXABLE YEAR, HE OR SHE EARNS FOLLOWING GRADUATION FROM  ANY
 COLLEGE OR UNIVERSITY HAVING ATTAINED A TWO-YEAR DEGREE.
   §  3. This act shall take effect immediately, and shall apply to taxa-
 ble years beginning the first of January following the effective date of
 this act.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06358-01-7

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