Senate Bill S5010A

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5010--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 6, 2017
                                ___________
 
 Introduced  by  Sens. GOLDEN, SAVINO, FELDER, PHILLIPS -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Investigations and Government Operations -- committee discharged, bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the tax law, in relation  to  establishing  the  helping
   open opportunities to learn tax credit
 
   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 (jjj) to read as follows:
   (JJJ)  HELPING  OPEN OPPORTUNITIES TO LEARN TAX CREDIT. (1) GENERAL. A
 RESIDENT LOW AND MIDDLE INCOME TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
 COMPUTED AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST  THE
 TAX  IMPOSED  BY  THIS  ARTICLE  FOR  THE QUALIFIED PRIMARY OR SECONDARY
 EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "RESIDENT  LOW  AND MIDDLE INCOME TAXPAYER" SHALL MEAN A TAXPAYER
 WHO IS A FULL-YEAR RESIDENT OF THIS  STATE  AND  WHOSE  FEDERAL  TAXABLE
 INCOME  IS  EQUAL  TO  OR  LESS THAN SEVEN HUNDRED TWENTY PERCENT OF THE
 FEDERAL POVERTY GUIDELINES, AS PROMULGATED ANNUALLY BY THE UNITED STATES
 DEPARTMENT OF HEALTH AND HUMAN SERVICES, FOR THE TAXABLE YEAR FOR  WHICH
 THIS CREDIT IS CLAIMED.
   (B)  "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" SHALL
 MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF AN  ELIGI-
 BLE STUDENT AT A PUBLIC OR NONPUBLIC SCHOOL. PROVIDED, HOWEVER, THAT ANY
 TUITION  PAYMENTS MADE FOR SUCH ELIGIBLE STUDENT PURSUANT TO THE RECEIPT
 OF FINANCIAL AID OR ONE OR MORE SCHOLARSHIPS SHALL BE EXCLUDED FROM  THE
 DEFINITION OF THE TERM "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION
 EXPENSES" FOR SUCH ELIGIBLE STUDENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10291-02-7

 S. 5010--A                          2
 
   (C)  "ELIGIBLE  STUDENT" SHALL MEAN ANY DEPENDENT OF THE TAXPAYER WITH
 RESPECT TO WHOM THE TAXPAYER IS ALLOWED AN EXEMPTION UNDER  SECTION  SIX
 HUNDRED SIXTEEN OF THIS ARTICLE FOR THE TAXABLE YEAR WHO IS ENROLLED IN,
 AND  FOR WHOM QUALIFIED PRIMARY AND SECONDARY EDUCATION TUITION EXPENSES
 HAVE BEEN PAID FOR, KINDERGARTEN OR GRADE ONE THROUGH TWELVE IN A QUALI-
 FIED SCHOOL.
   (D)  "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
 PROGRAM  OR  ELEMENTARY,  SECONDARY  SECTARIAN  OR  NONSECTARIAN  SCHOOL
 LOCATED  IN  THIS  STATE,  OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING
 INSTRUCTION AT ONE OR MORE LOCATIONS TO A  STUDENT  IN  ACCORDANCE  WITH
 SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW.
   (E)  "PUBLIC  SCHOOL" MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
 THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION  OR  CHARTER
 SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE EDUCATION LAW.
   (3)  AMOUNT  OF  CREDIT.  THE AMOUNT OF CREDIT THAT A RESIDENT LOW AND
 MIDDLE INCOME TAXPAYER MAY CLAIM FOR THE QUALIFIED PRIMARY OR  SECONDARY
 EDUCATION  TUITION  EXPENSES  PAID FOR EACH ELIGIBLE STUDENT SHALL EQUAL
 THE LESSER OF TWELVE PERCENT OF THE TOTAL PER PUPIL STATE PUBLIC  SCHOOL
 EXPENDITURES  OR  FIFTEEN  PERCENT OF THE QUALIFIED PRIMARY OR SECONDARY
 EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE  YEAR
 FOR  SUCH  ELIGIBLE  STUDENT. THE TOTAL STATE PUBLIC SCHOOL EXPENDITURES
 SHALL EQUAL THE SCHOOL AID, AS REPORTED  IN  THE  STATE  ENACTED  BUDGET
 FINANCIAL  PLAN  FOR  THE  TAXABLE  YEAR IN WHICH THE SCHOOL YEAR BEGAN,
 DIVIDED BY THE TOTAL NUMBER OF STUDENTS  ENROLLED  IN  KINDERGARTEN  AND
 GRADES  ONE  THROUGH TWELVE AT PUBLIC SCHOOLS IN THIS STATE AS PUBLISHED
 BY THE DEPARTMENT OF EDUCATION FOR SUCH TAXABLE YEAR.
   (4) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
 HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
 SHALL BE PAID THEREON.
   (5) HUSBAND AND WIFE. IN THE CASE OF A HUSBAND AND  WIFE  WHO  FILE  A
 JOINT  FEDERAL  RETURN, BUT WHO ARE REQUIRED TO DETERMINE THEIR NEW YORK
 TAXES SEPARATELY, THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION MAY  BE
 APPLIED  AGAINST  THE  TAX  IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS
 THEY MAY ELECT.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning after December 31, 2018.