Senate Bill S3850A

2017-2018 Legislative Session

Provides tax credit for allowable college expenses

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 26, 2018	print number 3850a
Jan 26, 2018	amend and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations
Jan 27, 2017	referred to investigations and government operations

Bill Amendments

2017-S3850 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S4576
2015-2016: S4678

2017-S3850 - Summary

Provides a tax credit for allowable college expenses.

2017-S3850 - Sponsor Memo

                                 BILL NUMBER:  S3850

 TITLE OF BILL :

An act to amend the tax law, in relation to providing a tax credit for
allowable college expenses

 PURPOSE :

To establish the "Stay in New York Tax Credit".

 SUMMARY OF PROVISIONS :

Section 1. Amends section 606 of the tax law to add a new section
(ccc) to establish the stay in New York Tax Credit. The amount of the
credit would be equal to 25% of allowable college expenses, capped at
$3000. Additionally, this section establishes the criteria required to
qualify for the credit.

Section 2. Amends the subparagraph (A) of paragraph 2 of subsection
(t) of section 606 of the tax law to define the term allowable college
tuition expenses.

Section 3. Amends paragraph 4 of subsection (t) of section 606 of the
tax law to improve New York's current tax credit.

Section 4. Amends subsection (t) of section 606 of the tax law to add
a new section 4-a to create an inflation adjustment for the credit.

Section 5. Sets forth the effective date.

 JUSTIFICATION :

This bill amends the tax law to create the Stay in New York Tax Credit
in order to retain graduates from New York colleges and universities.
The credit would allow college graduates to receive a credit equal to
their college expenses over four years. This credit would be capped at
$3000 per year and would apply to those graduates who live and work in
New York subsequent to graduation and who complete community service
while they are attending college.

Additionally, this bill improves New York's current tax credit by
doubling the amount of qualified college expenses that can be claimed
from $10,000 to $20,000 over five years and would double the amount of
the credit allowed from $400 to $800 during that same time period.
Furthermore, this bill would index the qualified tuition expenses and
the credit to the rate of inflation of the Higher Education Price
Index.

With the cost of higher education increasing and the amount of student
loan debt accumulated prior to graduation growing at an alarming rate,
this bill would ease the burden of repayment by creating a new tax
credit and improving the already existing program in order to offset
the costs of college. Additionally, this bill encourages students to
complete community service while in college and to remain in New York
State upon graduation.

 LEGISLATIVE HISTORY :

2015-16 S.4678A;
2013-14 S.4576A;
2012 was included as part A of the college affordability package,
S.7449A

 FISCAL IMPLICATIONS :

$212 million by 2016.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2019; provided, however, that
section one of this act shall apply to years beginning on or after
January 1,2020.

2017-S3850 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3850
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2017
                                ___________
 
 Introduced  by  Sen. LAVALLE -- 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 providing a tax  credit  for
   allowable college 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 (ccc) to read as follows:
   (CCC)  STAY  IN  NEW YORK CREDIT. (1) GENERAL. (A) A RESIDENT TAXPAYER
 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR
 ALLOWABLE  COLLEGE  EXPENSES. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO
 TWENTY-FIVE PERCENT OF ALLOWABLE COLLEGE EXPENSES, CAPPED AT THREE THOU-
 SAND DOLLARS. THE CREDIT SHALL BE ALLOWED ONLY IN THE FIRST TAXABLE YEAR
 SUBSEQUENT TO THE TAXPAYER'S COMPLETION OF A COURSE OF STUDY LEADING  TO
 THE  GRANTING  OF  A  BACCALAUREATE DEGREE AND IN EACH OF THE NEXT THREE
 TAXABLE YEARS.
   (B) IN ORDER TO QUALIFY FOR THE CREDIT, THE ELIGIBLE TAXPAYER SHALL:
   (I) HAVE COMPLETED THE COURSE OF STUDY LEADING TO THE  GRANTING  OF  A
 BACCALAUREATE DEGREE FROM AN INSTITUTION OF HIGHER EDUCATION WITHIN FOUR
 YEARS  FROM THE COMMENCEMENT OF SUCH COURSE OF STUDY. PROVIDED, HOWEVER,
 IF THE ELIGIBLE TAXPAYER WAS EMPLOYED IN EXCESS OF THREE  HUNDRED  HOURS
 PER  SEMESTER,  THE ELIGIBLE TAXPAYER SHALL HAVE COMPLETED THE COURSE OF
 STUDY LEADING TO THE GRANTING OF  A  BACCALAUREATE  DEGREE  WITHIN  FIVE
 YEARS FROM THE COMMENCEMENT OF SUCH COURSE OF STUDY;
   (II) BE EMPLOYED FULL-TIME WITHIN THE STATE; AND
   (III) HAVE COMPLETED TWENTY HOURS OF COMMUNITY SERVICE PER SEMESTER OF
 ENROLLMENT IN AN INSTITUTION OF HIGHER EDUCATION. PROVIDED, HOWEVER, FOR
 THOSE  ELIGIBLE  TAXPAYERS  WHO  HAVE  BEEN GRANTED DEGREES WITHIN THREE
 YEARS OF THE EFFECTIVE DATE OF THIS  SUBSECTION,  SUCH  TAXPAYERS  SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09349-01-7

 S. 3850                             2
 
 COMPLETE  THE  COMMUNITY  SERVICE WITHIN THE FIRST TAXABLE YEAR IN WHICH
 THE CREDIT IS CLAIMED.
   (C)  FOR ELIGIBLE TAXPAYERS WHO ENROLL IN A COURSE OF STUDY LEADING TO
 THE GRANTING OF A POST BACCALAUREATE OR OTHER GRADUATE DEGREE IMMEDIATE-
 LY FOLLOWING THE RECEIPT OF A BACCALAUREATE DEGREE, THE CREDIT SHALL  BE
 ALLOWED   IN  THE  FIRST  TAXABLE  YEAR  SUBSEQUENT  TO  THE  TAXPAYER'S
 COMPLETION OF SUCH DEGREE OR WHEN SUCH TAXPAYER CEASES TO BE ENROLLED IN
 SUCH COURSE OF STUDY AND  IN  EACH  OF  THE  NEXT  THREE  TAXABLE  YEARS
 PROVIDED ALL OTHER QUALIFICATIONS OF THIS SUBSECTION ARE MET.
   (2) ALLOWABLE AND QUALIFIED COLLEGE EXPENSES. FOR THE PURPOSES OF THIS
 CREDIT:
   (A)  THE TERM "ALLOWABLE COLLEGE EXPENSES" SHALL MEAN THE TOTAL AMOUNT
 OF QUALIFIED COLLEGE  EXPENSES  INCURRED  BY  THE  TAXPAYER  DURING  THE
 TAXPAYER'S  ENROLLMENT IN A COURSE OF STUDY LEADING TO THE GRANTING OF A
 BACCALAUREATE DEGREE FROM AN INSTITUTION OF HIGHER EDUCATION.
   (B) THE TERM "QUALIFIED  COLLEGE  EXPENSES"  SHALL  MEAN  THE  TUITION
 REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF THE TAXPAYER AT AN INSTITU-
 TION  OF  HIGHER  EDUCATION.    PROVIDED, HOWEVER, TUITION PAYMENTS MADE
 PURSUANT TO THE RECEIPT OF ANY SCHOLARSHIPS OR FINANCIAL  AID  SHALL  BE
 EXCLUDED FROM THE DEFINITION OF "QUALIFIED COLLEGE EXPENSES".
   (3)  INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
 THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
 HIGHER EDUCATION LOCATED IN THE STATE, RECOGNIZED AND  APPROVED  BY  THE
 REGENTS,  OR  ANY SUCCESSOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE
 OF NEW YORK OR ACCREDITED BY A NATIONALLY RECOGNIZED ACCREDITING  AGENCY
 OR  ASSOCIATION ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGAN-
 IZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK,  WHICH  PROVIDES  A
 COURSE  OF  STUDY  LEADING  TO  THE GRANTING OF A POST-SECONDARY DEGREE,
 CERTIFICATE OR DIPLOMA.
   (4) REFUNDABILITY. THE CREDIT UNDER THIS SUBSECTION SHALL  BE  ALLOWED
 AGAINST  THE  TAXES IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR REDUCED
 BY THE CREDITS PERMITTED BY THIS ARTICLE. 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 AS AN OVERPAYMENT, WITHOUT
 INTEREST, THE AMOUNT OF SUCH EXCESS.
   § 2. Subparagraph (A) of paragraph 2 of subsection (t) of section  606
 of  the  tax law, as amended by section 1 of part N of chapter 85 of the
 laws of 2002, is amended to read as follows:
   (A) The term "allowable  college  tuition  expenses"  shall  mean  the
 amount  of  qualified college tuition expenses of eligible students paid
 by the taxpayer during the taxable  year[,].  THE  AMOUNT  OF  QUALIFIED
 COLLEGE  TUITION  EXPENSES SHALL BE limited [to] AS FOLLOWS: FOR TAXABLE
 YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO THOUSAND NINETEEN  ten
 thousand  dollars  for each such student; FOR TAXABLE YEARS BEGINNING IN
 TWO THOUSAND NINETEEN, TWELVE THOUSAND DOLLARS  FOR  EACH  STUDENT;  FOR
 TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  TWENTY,  FOURTEEN THOUSAND
 DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND
 TWENTY-ONE, SIXTEEN THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS
 BEGINNING IN TWO THOUSAND TWENTY-TWO, EIGHTEEN THOUSAND DOLLARS FOR EACH
 STUDENT;  AND FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-TWO,
 TWENTY THOUSAND DOLLARS PER STUDENT;
   § 3. Paragraph 4 of subsection (t) of section 606 of the tax  law,  as
 added  by  section  1  of  part DD of chapter 63 of the laws of 2000, is
 amended to read as follows:
   (4) Amount of credit. [If allowable college tuition expenses are  less
 than five thousand dollars, the amount of the credit provided under this

 S. 3850                             3

 subsection  shall be equal to the applicable percentage of the lesser of
 allowable college tuition expenses or two hundred dollars. If  allowable
 college  tuition  expenses are five thousand dollars or more, the amount
 of  the  credit  provided  under  this  subsection shall be equal to the
 applicable percentage of the allowable college tuition  expenses  multi-
 plied by four percent.]
   THE  AMOUNT  OF  THE CREDIT SHALL BE DETERMINED IN ACCORDANCE WITH THE
 FOLLOWING SCHEDULES:
   (A) FOR TAXABLE YEARS BEGINNING AFTER  TWO  THOUSAND  AND  BEFORE  TWO
 THOUSAND NINETEEN:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN FIVE THOUSAND DOLLARS     THE APPLICABLE PERCENTAGE OF THE
                                     LESSER OF ALLOWABLE COLLEGE TUITION
                                     EXPENSES OR TWO HUNDRED DOLLARS
 FIVE THOUSAND DOLLARS OR MORE       THE APPLICABLE PERCENTAGE OF
                                     ALLOWABLE COLLEGE TUITION EXPENSES
                                     MULTIPLIED BY FOUR PERCENT
   (B) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN SIX THOUSAND DOLLARS      THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR TWO HUNDRED
                                     FORTY DOLLARS
 SIX THOUSAND DOLLARS OR MORE        THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN SEVEN THOUSAND DOLLARS    THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR TWO HUNDRED
                                     EIGHTY DOLLARS
 SEVEN THOUSAND DOLLARS OR MORE      THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (D) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-ONE:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN EIGHT THOUSAND DOLLARS    THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR THREE HUNDRED
                                     TWENTY DOLLARS
 EIGHT THOUSAND DOLLARS OR MORE      THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (E) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN NINE THOUSAND DOLLARS     THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR THREE HUNDRED
                                     SIXTY DOLLARS
 NINE THOUSAND DOLLARS OR MORE       THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (F) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-TWO:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN TEN THOUSAND DOLLARS      THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR FOUR HUNDRED

 S. 3850                             4
 
                                     DOLLARS
 TEN THOUSAND DOLLARS OR MORE        THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   Such  applicable  percentage  shall be twenty-five percent for taxable
 years beginning in two thousand one, fifty  percent  for  taxable  years
 beginning  in  two  thousand two, seventy-five percent for taxable years
 beginning in two thousand three and  one  hundred  percent  for  taxable
 years beginning after two thousand three.
   § 4. Subsection (t) of section 606 of the tax law is amended by adding
 a new paragraph 4-a to read as follows:
   (4-A)  INFLATION  ADJUSTMENT.  (A)  FOR  TAXABLE YEARS BEGINNING IN OR
 AFTER TWO THOUSAND TWENTY-THREE, THE DOLLAR AMOUNTS IN SUBPARAGRAPH  (A)
 OF  PARAGRAPH  TWO AND PARAGRAPH FOUR OF THIS SUBSECTION SHALL BE MULTI-
 PLIED BY ONE PLUS THE INFLATION ADJUSTMENT.
   (B) THE INFLATION  ADJUSTMENT  FOR  ANY  TAXABLE  YEAR  SHALL  BE  THE
 PERCENTAGE,  IF  ANY,  BY WHICH THE HIGHER EDUCATION PRICE INDEX FOR THE
 ACADEMIC FISCAL YEAR ENDING IN THE IMMEDIATELY  PRECEDING  TAXABLE  YEAR
 EXCEEDS  THE  HIGHER  EDUCATION PRICE INDEX FOR THE ACADEMIC FISCAL YEAR
 ENDING JUNE, TWO THOUSAND TWENTY-TWO. FOR THE  PURPOSES  OF  THIS  PARA-
 GRAPH, THE HIGHER EDUCATION PRICE INDEX MEANS THE HIGHER EDUCATION PRICE
 INDEX PUBLISHED BY THE COMMONFUND INSTITUTE.
   (C) IF THE PRODUCT OF THE AMOUNTS IN SUBPARAGRAPHS (A) AND (B) OF THIS
 PARAGRAPH  IS  NOT  A  MULTIPLE  OF FIVE DOLLARS, SUCH INCREASE SHALL BE
 ROUNDED TO THE NEXT MULTIPLE OF FIVE DOLLARS.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1,  2019;  provided,  however,  that
 section  one  of  this  act shall apply to taxable years beginning on or
 after January 1, 2020.

2017-S3850A (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:: 2013-2014: S4576
2015-2016: S4678

2017-S3850A (ACTIVE) - Summary

Provides a tax credit for allowable college expenses.

2017-S3850A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3850A

SPONSOR: LAVALLE
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing a tax credit for
allowable college expenses

 
PURPOSE:

To establish the "Stay in New York Tax Credit".

 
SUMMARY OF PROVISIONS:

Section 1. Amends section 606 of the tax law to add a new section (ccc)
to establish the stay in New York Tax Credit. The amount of the credit
would be equal to 25% of allowable college expenses, capped at $3000.
Additionally, this section establishes the criteria required to qualify
for the credit.

Section 2. Amends the subparagraph (A) of paragraph 2 of subsection (t)

of section 606 of the tax law to define the term allowable college
tuition expenses.

Section 3. Amends paragraph 4 of subsection (t) of section 606 of the
tax law to improve New York's current tax credit.

Section 4. Amends subsection (t) of section 606 of the tax law to add a
new section 4-a to create an inflation adjustment for the credit.

Section 5. Sets forth the effective date.

 
JUSTIFICATION:

This bill amends the tax law to create the Stay in New York Tax Credit
in order to retain graduates from New York colleges and universities.
The credit would allow college graduates to receive a credit equal to
their college expenses over four years. This credit would be capped at
$3000 per year and would apply to those graduates who live and work in
New York subsequent to graduation and who complete community service
while they are attending college.

Additionally, this bill improves New York's current tax credit by doubl-
ing the amount of qualified college expenses that can be claimed from
$10,000 to $20,000 over five years and would double the amount of the
credit allowed from $400 to $800 during that same time period.  Further-
more, this bill would index the qualified tuition expenses and the cred-
it to the rate of inflation of the Higher Education Price Index.

With the cost of higher education increasing and the amount of student
loan debt accumulated prior to graduation growing at an alarming rate,
this bill would ease the burden of repayment by creating a new tax cred-
it and improving the already existing program in order to offset the
costs of college. Additionally, this bill encourages students to
complete community service while in college and to remain in New York
State upon graduation.

 
LEGISLATIVE HISTORY:

2015-16 S.4678A;
2013-14 S.4576A;
2012 was included as part A of the college affordability package,
S.7449A

 
FISCAL IMPLICATIONS:

TBD.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2020; provided, however, that section
one of this act shall apply to years beginning on or after January 1,
2021.

2017-S3850A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3850--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2017
                                ___________
 
 Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations -- recommitted to the Committee on Investigations  and
   Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT  to amend the tax law, in relation to providing a tax credit for
   allowable college 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 (ccc) to read as follows:
   (CCC) STAY IN NEW YORK CREDIT. (1) GENERAL. (A)  A  RESIDENT  TAXPAYER
 SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
 ALLOWABLE COLLEGE EXPENSES. THE AMOUNT OF THE CREDIT SHALL BE  EQUAL  TO
 TWENTY-FIVE PERCENT OF ALLOWABLE COLLEGE EXPENSES, CAPPED AT THREE THOU-
 SAND DOLLARS. THE CREDIT SHALL BE ALLOWED ONLY IN THE FIRST TAXABLE YEAR
 SUBSEQUENT  TO THE TAXPAYER'S COMPLETION OF A COURSE OF STUDY LEADING TO
 THE GRANTING OF A BACCALAUREATE DEGREE AND IN EACH  OF  THE  NEXT  THREE
 TAXABLE YEARS.
   (B) IN ORDER TO QUALIFY FOR THE CREDIT, THE ELIGIBLE TAXPAYER SHALL:
   (I)  HAVE  COMPLETED  THE COURSE OF STUDY LEADING TO THE GRANTING OF A
 BACCALAUREATE DEGREE FROM AN INSTITUTION OF HIGHER EDUCATION WITHIN FOUR
 YEARS FROM THE COMMENCEMENT OF SUCH COURSE OF STUDY. PROVIDED,  HOWEVER,
 IF  THE  ELIGIBLE TAXPAYER WAS EMPLOYED IN EXCESS OF THREE HUNDRED HOURS
 PER SEMESTER, THE ELIGIBLE TAXPAYER SHALL HAVE COMPLETED THE  COURSE  OF
 STUDY  LEADING  TO  THE  GRANTING  OF A BACCALAUREATE DEGREE WITHIN FIVE
 YEARS FROM THE COMMENCEMENT OF SUCH COURSE OF STUDY;
   (II) BE EMPLOYED FULL-TIME WITHIN THE STATE; AND
   (III) HAVE COMPLETED TWENTY HOURS OF COMMUNITY SERVICE PER SEMESTER OF
 ENROLLMENT IN AN INSTITUTION OF HIGHER EDUCATION. PROVIDED, HOWEVER, FOR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09349-02-8

 S. 3850--A                          2
 
 THOSE ELIGIBLE TAXPAYERS WHO HAVE  BEEN  GRANTED  DEGREES  WITHIN  THREE
 YEARS  OF  THE  EFFECTIVE  DATE OF THIS SUBSECTION, SUCH TAXPAYERS SHALL
 COMPLETE THE COMMUNITY SERVICE WITHIN THE FIRST TAXABLE  YEAR  IN  WHICH
 THE CREDIT IS CLAIMED.
   (C)  FOR ELIGIBLE TAXPAYERS WHO ENROLL IN A COURSE OF STUDY LEADING TO
 THE GRANTING OF A POST BACCALAUREATE OR OTHER GRADUATE DEGREE IMMEDIATE-
 LY FOLLOWING THE RECEIPT OF A BACCALAUREATE DEGREE, THE CREDIT SHALL  BE
 ALLOWED   IN  THE  FIRST  TAXABLE  YEAR  SUBSEQUENT  TO  THE  TAXPAYER'S
 COMPLETION OF SUCH DEGREE OR WHEN SUCH TAXPAYER CEASES TO BE ENROLLED IN
 SUCH COURSE OF STUDY AND  IN  EACH  OF  THE  NEXT  THREE  TAXABLE  YEARS
 PROVIDED ALL OTHER QUALIFICATIONS OF THIS SUBSECTION ARE MET.
   (2) ALLOWABLE AND QUALIFIED COLLEGE EXPENSES. FOR THE PURPOSES OF THIS
 CREDIT:
   (A)  THE TERM "ALLOWABLE COLLEGE EXPENSES" SHALL MEAN THE TOTAL AMOUNT
 OF QUALIFIED COLLEGE  EXPENSES  INCURRED  BY  THE  TAXPAYER  DURING  THE
 TAXPAYER'S  ENROLLMENT IN A COURSE OF STUDY LEADING TO THE GRANTING OF A
 BACCALAUREATE DEGREE FROM AN INSTITUTION OF HIGHER EDUCATION.
   (B) THE TERM "QUALIFIED  COLLEGE  EXPENSES"  SHALL  MEAN  THE  TUITION
 REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF THE TAXPAYER AT AN INSTITU-
 TION  OF  HIGHER  EDUCATION.    PROVIDED, HOWEVER, TUITION PAYMENTS MADE
 PURSUANT TO THE RECEIPT OF ANY SCHOLARSHIPS OR FINANCIAL  AID  SHALL  BE
 EXCLUDED FROM THE DEFINITION OF "QUALIFIED COLLEGE EXPENSES".
   (3)  INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
 THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
 HIGHER EDUCATION LOCATED IN THE STATE, RECOGNIZED AND  APPROVED  BY  THE
 REGENTS,  OR  ANY SUCCESSOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE
 OF NEW YORK OR ACCREDITED BY A NATIONALLY RECOGNIZED ACCREDITING  AGENCY
 OR  ASSOCIATION ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGAN-
 IZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK,  WHICH  PROVIDES  A
 COURSE  OF  STUDY  LEADING  TO  THE GRANTING OF A POST-SECONDARY DEGREE,
 CERTIFICATE OR DIPLOMA.
   (4) REFUNDABILITY. THE CREDIT UNDER THIS SUBSECTION SHALL  BE  ALLOWED
 AGAINST  THE  TAXES IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR REDUCED
 BY THE CREDITS PERMITTED BY THIS ARTICLE. 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 AS AN OVERPAYMENT, WITHOUT
 INTEREST, THE AMOUNT OF SUCH EXCESS.
   § 2. Subparagraph (A) of paragraph 2 of subsection (t) of section  606
 of  the  tax law, as amended by section 1 of part N of chapter 85 of the
 laws of 2002, is amended to read as follows:
   (A) The term "allowable  college  tuition  expenses"  shall  mean  the
 amount  of  qualified college tuition expenses of eligible students paid
 by the taxpayer during the taxable  year[,].  THE  AMOUNT  OF  QUALIFIED
 COLLEGE  TUITION  EXPENSES SHALL BE limited [to] AS FOLLOWS: FOR TAXABLE
 YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO  THOUSAND  TWENTY  ten
 thousand  dollars  for each such student; FOR TAXABLE YEARS BEGINNING IN
 TWO THOUSAND TWENTY, TWELVE THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXA-
 BLE YEARS  BEGINNING  IN  TWO  THOUSAND  TWENTY-ONE,  FOURTEEN  THOUSAND
 DOLLARS  FOR  EACH  STUDENT; FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND
 TWENTY-TWO, SIXTEEN THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS
 BEGINNING IN TWO THOUSAND TWENTY-THREE, EIGHTEEN  THOUSAND  DOLLARS  FOR
 EACH  STUDENT;  AND FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWEN-
 TY-THREE, TWENTY THOUSAND DOLLARS PER STUDENT;
   § 3. Paragraph 4 of subsection (t) of section 606 of the tax  law,  as
 added  by  section  1  of  part DD of chapter 63 of the laws of 2000, is
 amended to read as follows:

 S. 3850--A                          3
 
   (4) Amount of credit. [If allowable college tuition expenses are  less
 than five thousand dollars, the amount of the credit provided under this
 subsection  shall be equal to the applicable percentage of the lesser of
 allowable college tuition expenses or two hundred dollars. If  allowable
 college  tuition  expenses are five thousand dollars or more, the amount
 of the credit provided under this  subsection  shall  be  equal  to  the
 applicable  percentage  of the allowable college tuition expenses multi-
 plied by four percent.]
   THE AMOUNT OF THE CREDIT SHALL BE DETERMINED IN  ACCORDANCE  WITH  THE
 FOLLOWING SCHEDULES:
   (A)  FOR  TAXABLE  YEARS  BEGINNING  AFTER TWO THOUSAND AND BEFORE TWO
 THOUSAND TWENTY:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN FIVE THOUSAND DOLLARS     THE APPLICABLE PERCENTAGE OF THE
                                     LESSER OF ALLOWABLE COLLEGE TUITION
                                     EXPENSES OR TWO HUNDRED DOLLARS
 FIVE THOUSAND DOLLARS OR MORE       THE APPLICABLE PERCENTAGE OF
                                     ALLOWABLE COLLEGE TUITION EXPENSES
                                     MULTIPLIED BY FOUR PERCENT
   (B) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN SIX THOUSAND DOLLARS      THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR TWO HUNDRED
                                     FORTY DOLLARS
 SIX THOUSAND DOLLARS OR MORE        THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-ONE:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN SEVEN THOUSAND DOLLARS    THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR TWO HUNDRED
                                     EIGHTY DOLLARS
 SEVEN THOUSAND DOLLARS OR MORE      THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (D) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN EIGHT THOUSAND DOLLARS    THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR THREE HUNDRED
                                     TWENTY DOLLARS
 EIGHT THOUSAND DOLLARS OR MORE      THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (E) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-THREE:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN NINE THOUSAND DOLLARS     THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR THREE HUNDRED
                                     SIXTY DOLLARS
 NINE THOUSAND DOLLARS OR MORE       THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (F) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-THREE:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN TEN THOUSAND DOLLARS      THE LESSER OF ALLOWABLE COLLEGE

 S. 3850--A                          4
 
                                     TUITION EXPENSES OR FOUR HUNDRED
                                     DOLLARS
 TEN THOUSAND DOLLARS OR MORE        THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   Such  applicable  percentage  shall be twenty-five percent for taxable
 years beginning in two thousand one, fifty  percent  for  taxable  years
 beginning  in  two  thousand two, seventy-five percent for taxable years
 beginning in two thousand three and  one  hundred  percent  for  taxable
 years beginning after two thousand three.
   § 4. Subsection (t) of section 606 of the tax law is amended by adding
 a new paragraph 4-a to read as follows:
   (4-A)  INFLATION  ADJUSTMENT.  (A)  FOR  TAXABLE YEARS BEGINNING IN OR
 AFTER TWO THOUSAND TWENTY-FOUR, THE DOLLAR AMOUNTS IN  SUBPARAGRAPH  (A)
 OF  PARAGRAPH  TWO AND PARAGRAPH FOUR OF THIS SUBSECTION SHALL BE MULTI-
 PLIED BY ONE PLUS THE INFLATION ADJUSTMENT.
   (B) THE INFLATION  ADJUSTMENT  FOR  ANY  TAXABLE  YEAR  SHALL  BE  THE
 PERCENTAGE,  IF  ANY,  BY WHICH THE HIGHER EDUCATION PRICE INDEX FOR THE
 ACADEMIC FISCAL YEAR ENDING IN THE IMMEDIATELY  PRECEDING  TAXABLE  YEAR
 EXCEEDS  THE  HIGHER  EDUCATION PRICE INDEX FOR THE ACADEMIC FISCAL YEAR
 ENDING JUNE, TWO THOUSAND TWENTY-THREE.  FOR THE PURPOSES OF THIS  PARA-
 GRAPH, THE HIGHER EDUCATION PRICE INDEX MEANS THE HIGHER EDUCATION PRICE
 INDEX PUBLISHED BY THE COMMONFUND INSTITUTE.
   (C) IF THE PRODUCT OF THE AMOUNTS IN SUBPARAGRAPHS (A) AND (B) OF THIS
 PARAGRAPH  IS  NOT  A  MULTIPLE  OF FIVE DOLLARS, SUCH INCREASE SHALL BE
 ROUNDED TO THE NEXT MULTIPLE OF FIVE DOLLARS.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1,  2020;  provided,  however,  that
 section  one  of  this  act shall apply to taxable years beginning on or
 after January 1, 2021.

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Senate Bill S3850A

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Sponsored By

Kenneth P. LaValle

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

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