A08453 Summary:

BILL NO    A08453 

SAME AS    No same as

SPONSOR    Tedisco (MS)

COSPNSR    Reilich, Kolb, Thiele

MLTSPNSR   Conte, Hawley

Amd S605, Tax L

Enacts the graduate outreach assistance law to exempt from state income
taxation the first two hundred fifty thousand dollars, with a fifty thousand
dollar cap per year, earned by a four-year college graduate and the first one
hundred fifty thousand dollars, with a twenty-five thousand dollar cap per
year, earned by a two-year college graduate.

A08453 Actions:

BILL NO    A08453 

05/20/2009 referred to ways and means
01/06/2010 referred to ways and means

A08453 Votes:

A08453 Memo:

BILL NUMBER:A8453

TITLE OF BILL:  An act to amend the tax law, in relation to enacting
the graduate outreach assistance law to exempt from state income
taxation the first two hundred fifty thousand dollars earned by a
college graduate

PURPOSE OR GENERAL IDEA OF BILL: This bill exempts four-year college
graduates from state income tax on the first $250,000 earned after
graduation, with a maximum of $50,000 being claimed each year. Further
this bill exempts two-year college graduates from state income tax on
the first $150,000 earned after graduation, with a maximum of $25,000
being claimed each year.

SUMMARY OF SPECIFIC PROVISIONS:  Section 1. This act shall be known as
the "graduate outreach assistance law."

Section 2. 2. Paragraph 3 of subsection (a) of section 605 of the tax
law, as added by Chapter 28 of the laws of 1987 is amended to read as
follows:

(3) Accounting methods (A) A taxpayer's method of accounting under
this article shall be the same as his/her method of accounting for
federal income tax purposes, with the exception of the provisions of
subparagraph (B) of this paragraph. In the absence of any method of
accounting for federal income tax purposes, the New York taxable
income shall be computed under such method as in the opinion of the
state tax commission clearly reflects income.

(B) For the purposes of computing New York State taxable income, a
taxpayer shall not be required to include in such computation the
first two hundred and fifty thousand dollars he or she earns following
graduation from any college or university having attained a four year
degree or higher or first one hundred and fifty thousand dollars he or
she earns following graduation with a two ear degree.

JUSTIFICATION:  This proposal will provide an incentive for college
graduates to stay or return to New York after graduating from college.
According to the United States Census, from 1995-2000, 119,666 young,
single and college educated New Yorkers moved to other states. The
Post-secondary Education Opportunity's study of college migration
found that New York loses 13,072 more graduates each year than it
attracts.

By not taxing the first $250,000 or $150,000 respectively, a person
earns in their lifetime, it will make it easier for young people to be
able to accept and live on an entry-level salary. They will be better
able to payoff student loans, save for a house, buy a car and have
more discretionary income to spend. The more they spend in New York,
the more they help the economy.

PRIOR LEGISLATIVE HISTORY:
2008: A.5549, Held for consideration in ways and means
2006: Ways and Means
2004: Ways and Means
2007: Ways and Means


FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE:  This act shall take effect immediately