NY State Senate Bill 2025-S7906

Current Bill Status - In Senate Committee Finance 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 28, 2025	reported and committed to finance
May 13, 2025	referred to budget and revenue

Votes

- May 28, 2025 - Budget And Revenue Committee Vote
  S7906
  
  4
  
  Aye
  
  1
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Budget And Revenue Committee Vote: May 28, 2025
      
      aye (4)
      
      Addabbo Jr.
      
      Comrie
      
      Gounardes
      
      Ramos
      
      nay (1)
      
      Rhoads
      
      aye wr (2)
      
      Krueger
      
      Weber

2025-S7906 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L

2025-S7906 (ACTIVE) - Summary

Amends the college tuition credit; eliminates the credit for taxpayers whose adjusted gross income is over $15,000,000; sets a sliding scale.

2025-S7906 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7906

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the tax law, in relation to the college tuition personal
income tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would provide for a means test for the college tuition credit
and deduction for personal income tax filers making over one million
dollars

 
SUMMARY OF PROVISIONS:

Section One amends paragraph 4 of subsection (t) of section 606 of the
tax law to provide for the computation of the college tuition credit
deduction based on the amount of New York adjusted gross income

Section two provides for the effective date

 
JUSTIFICATION:

Currently, this tax credit subsidizes four percent of tuition, for a max
of $10,000 per student, paid by New York residents on behalf of them-
selves, spouses, or dependents to attend qualifying in-state or out-of-
state institutions of higher education (IHE).

Alternatively, PIT filers choosing to itemize may take the credit as an
itemized deduction instead. New York makes this credit or deduction
available for any accredited college, including schools in New York
charging more than $70,000 a year in tuition, no matter how much money
the filer earns, and regardless of whether or not the IHE is located in
New York State.

While a tax expenditure to make college more affordable is certainly a
worthy reform, the fact that this credit/deduction is not means-tested
means that we are footing the bill for the first $10,000 of tuition for
billionaire filers who can well afford it.

A means-tested approach to this subsidy would ensure that it targets
families most in need while providing the state room to invest in higher
education programs and initiatives that benefit all filers.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law

2025-S7906 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7906
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 13, 2025
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to the college tuition personal
   income tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. 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-
 plied  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] COMPUTED
 IN THE FOLLOWING MANNER:
   FOR UNMARRIED INDIVIDUALS, A HEAD OF A HOUSEHOLD, OR A  MARRIED  INDI-
 VIDUAL FILING A SEPARATE RETURN:
 IF NEW YORK ADJUSTED GROSS                   THE APPLICABLE PERCENTAGE IS:
 INCOME IS:
 NOT OVER $1,000,000                          100%
 OVER $1,000,000 BUT NOT OVER $5,000,000      50%
 OVER $5,000,000 BUT NOT OVER $10,000,000     25%
 OVER $10,000,000                             0%.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11075-03-5
 S. 7906                             2

 
   FOR  MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY OR SURVIVING
 SPOUSES:
 IF NEW YORK ADJUSTED GROSS                   THE APPLICABLE PERCENTAGE IS:
 INCOME IS:
 NOT OVER $1,500,000                          100%
 OVER $1,500,000 BUT NOT OVER $7,500,000      50%
 OVER $7,500,000 BUT NOT OVER $15,000,000     25%
 OVER $15,000,000                             0%.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a  law  and  shall  apply  to
 taxable years beginning on or after such date.

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Senate Bill S7906

Sponsored By

Current Bill Status - In Senate Committee Finance Committee

May 28, 2025 - Budget And Revenue Committee Vote

Budget And Revenue Committee Vote: May 28, 2025

2025-S7906 (ACTIVE) - Details

2025-S7906 (ACTIVE) - Summary

2025-S7906 (ACTIVE) - Sponsor Memo

2025-S7906 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7906

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Sponsored By

Andrew Gounardes

Current Bill Status - In Senate Committee Finance Committee

2025-S7906 (ACTIVE) - Details

2025-S7906 (ACTIVE) - Summary

2025-S7906 (ACTIVE) - Sponsor Memo

2025-S7906 (ACTIVE) - Bill Text download pdf

Comments