S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5999
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 27, 2023
                                ___________
 
 Introduced  by  Sen.  LANZA  -- 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  establishing  the  college
   preparation tax credit act
 
   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  "college
 preparation tax credit act".
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (ooo) to read as follows:
   (OOO) COLLEGE PREPARATION EXPENSE CREDIT. (1)  GENERAL.    A  RESIDENT
 TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE  FOR  ALLOWABLE  COLLEGE  PREPARATION EXPENSES. EACH TAXABLE YEAR, A
 CREDIT OF UP TO FIVE HUNDRED DOLLARS PER  CHILD  SHALL  BE  ALLOWED  FOR
 QUALIFIED  COLLEGE PREPARATION EXPENSES PAID OR INCURRED BY THE TAXPAYER
 DURING SUCH TAXABLE YEAR. NO CREDIT SHALL BE ALLOWED  FOR  ANY  EXPENSES
 PAID  OR INCURRED DURING THE TAXABLE YEAR WITH RESPECT TO ANY INDIVIDUAL
 FOR WHOM AN ELECTION IS NOT IN EFFECT UNDER  THIS  SUBSECTION  FOR  SUCH
 TAXABLE  YEAR.  AN ELECTION MAY NOT BE MADE FOR ANY TAXABLE YEAR IF SUCH
 AN ELECTION IS IN EFFECT WITH RESPECT TO SUCH INDIVIDUAL FOR  ANY  THREE
 PRIOR TAXABLE YEARS.
   (2)  QUALIFIED  COLLEGE  PREPARATION  EXPENSES.  FOR  PURPOSES OF THIS
 SUBSECTION, THE TERM  "QUALIFIED  COLLEGE  PREPARATION  EXPENSES"  MEANS
 AMOUNTS PAID OR INCURRED FOR:
   (A)  FEES  REQUIRED FOR TAKING ANY ADVANCED PLACEMENT OR INTERNATIONAL
 BACCALAUREATE EXAM;
   (B) FEES REQUIRED FOR TAKING THE SAT, THE  ACT,  OR  ANY  SAT  SUBJECT
 TEST;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09768-01-3
 S. 5999                             2
 
              

   (C)  EXPENSES  RELATED  TO PREPARATION INCLUDING TUTORIAL SERVICES AND
 PREPARATION CLASSES FOR ANY EXAM DESCRIBED IN SUBPARAGRAPH (A) OR (B) OF
 THIS PARAGRAPH;
   (D)  FEES AND EXPENSES RELATED TO APPLICATIONS FOR ADMISSION TO PURSUE
 A POSTSECONDARY COURSE OF STUDY AT AN ELIGIBLE EDUCATIONAL  INSTITUTION;
 AND
   (E)  SUCH  OTHER  SIMILAR EXPENSES AND FEES AS THE COMMISSIONER MAY BY
 REGULATION PRESCRIBE.
   (3) TREATMENT OF EXPENSES PAID BY DEPENDENT. IF A DEDUCTION UNDER THIS
 SUBSECTION WITH RESPECT TO AN INDIVIDUAL IS ALLOWED TO ANOTHER  TAXPAYER
 FOR A TAXABLE YEAR BEGINNING IN THE CALENDAR YEAR IN WHICH SUCH INDIVID-
 UAL'S TAXABLE YEAR BEGINS:
   (A)  NO CREDIT SHALL BE ALLOWED UNDER PARAGRAPH ONE OF THIS SUBSECTION
 TO SUCH INDIVIDUAL FOR SUCH INDIVIDUAL'S TAXABLE YEAR; AND
   (B) QUALIFIED COLLEGE PREPARATION EXPENSES  PAID  BY  SUCH  INDIVIDUAL
 DURING  SUCH  INDIVIDUAL'S TAXABLE YEAR SHALL BE TREATED FOR PURPOSES OF
 THIS SUBSECTION AS PAID BY SUCH OTHER TAXPAYER.
   § 3. This act shall take effect immediately.