S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7657
 
                             I N  S E N A T E
 
                             February 4, 2020
                                ___________
 
 Introduced by Sens. LAVALLE, GALLIVAN -- read twice and ordered printed,
   and  when  printed  to be committed to the Committee on Investigations
   and Government Operations
 
 AN ACT to amend the tax law, in relation to the definition of "allowable
   college tuition expenses" and the tax credit allowed for such expenses
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  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-ONE,
 ten  thousand dollars for each such student; FOR TAXABLE YEARS BEGINNING
 IN TWO THOUSAND TWENTY-ONE, TWELVE THOUSAND DOLLARS  FOR  EACH  STUDENT;
 FOR  TAXABLE  YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO, FOURTEEN THOU-
 SAND DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS BEGINNING IN TWO  THOU-
 SAND  TWENTY-THREE, SIXTEEN THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXA-
 BLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-FOUR,  EIGHTEEN  THOUSAND
 DOLLARS  FOR  EACH  STUDENT;  AND  FOR TAXABLE YEARS BEGINNING AFTER TWO
 THOUSAND TWENTY-FOUR, TWENTY THOUSAND DOLLARS PER STUDENT;
   § 2. 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
 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-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14920-01-0

 S. 7657                             2

 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-ONE:
 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-ONE:
 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-TWO:
 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-THREE:
 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-FOUR:
 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-FOUR:
 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
                                     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

 S. 7657                             3
 
 beginning  in  two  thousand  three  and one hundred percent for taxable
 years beginning after two thousand three.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2021.