S T A T E O F N E W Y O R K
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8243
2019-2020 Regular Sessions
I N A S S E M B L Y
June 10, 2019
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Introduced by M. of A. EPSTEIN -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to creating a tax credit for
employers who contribute to a college choice tuition savings account
on behalf of an employee
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 210-B of the tax law is amended by adding a new
subdivision 54 to read as follows:
54. EMPLOYER COLLEGE CHOICE TUITION SAVINGS CONTRIBUTION CREDIT. (A)
ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, AGAINST THE
TAX IMPOSED BY THIS ARTICLE, IF IT PROVIDES A CONTRIBUTION, ON BEHALF OF
AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER ARTICLE FOUR-
TEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
(B) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S PAYMENT,
ON BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER
ARTICLE FOURTEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE. PROVIDED,
HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL EXCEED
FIVE THOUSAND DOLLARS PER EMPLOYEE.
(C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF
CREDITS ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10997-05-9
A. 8243 2
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
(D) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
SEE SECTION FORTY-FOUR OF THIS CHAPTER.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xlv) to read as
follows:
(XLV) EMPLOYER COLLEGE AMOUNT OF CREDIT
CHOICE TUITION SAVINGS UNDER SUBDIVISION
CONTRIBUTION CREDIT UNDER FIFTY-FOUR OF SECTION
SUBSECTION (KKK) TWO HUNDRED TEN-B
§ 3. Section 606 of the tax law is amended by adding a new subsection
(kkk) to read as follows:
(KKK) EMPLOYER COLLEGE CHOICE TUITION SAVINGS CONTRIBUTION CREDIT.
(1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS PROVIDED IN PARAGRAPH TWO OF THIS SUBSECTION, AGAINST THE
TAX IMPOSED BY THIS ARTICLE, IF IT PROVIDES FOR A CONTRIBUTION, ON
BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER
ARTICLE FOURTEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
(2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF
THIS SUBSECTION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S CONTRIB-
UTION, ON BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED
UNDER ARTICLE FOURTEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
PROVIDED, HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBSECTION
SHALL EXCEED FIVE THOUSAND DOLLARS PER EMPLOYEE.
(3) 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.
(4) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
SEE SECTION FORTY-FOUR OF THIS CHAPTER.
§ 4. Section 1511 of the tax law is amended by adding a new subdivi-
sion (ee) to read as follows:
(EE) EMPLOYER COLLEGE CHOICE TUITION SAVINGS CONTRIBUTION CREDIT. (1)
ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS PROVIDED IN PARAGRAPH (2) OF THIS SUBDIVISION, AGAINST THE
TAX IMPOSED BY THIS ARTICLE, IF IT PROVIDES A CONTRIBUTION, ON BEHALF OF
AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER ARTICLE FOUR-
TEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
(2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF
THIS SUBDIVISION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S PAYMENT,
ON BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER
ARTICLE FOURTEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE. PROVIDED,
HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL EXCEED
FIVE THOUSAND DOLLARS PER EMPLOYEE.
(3) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
TWO OR SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS
APPLICABLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS
SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAXPAYER'S TAX TO SUCH
AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
A. 8243 3
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF ONE THOUSAND EIGHTY-EIGHT
OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
(4) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
SEE SECTION FORTY-FOUR OF THIS CHAPTER.
§ 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after the first of January next succeeding the
date on which it shall have become a law.