S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         8453

                              2009-2010 Regular Sessions

                                 I N  A S S E M B L Y

                                     May 20, 2009
                                      ___________

       Introduced  by M. of A. TEDISCO, REILICH, KOLB, THIELE, WALKER -- Multi-
         Sponsored by -- M. of A. CONTE, HAWLEY -- read once  and  referred  to
         the Committee on Ways and Means

       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

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  This act shall be known and may be cited as the "graduate
    2  outreach assistance law".
    3    S 2. Paragraph 3 of subsection (a) of section 605 of the tax  law,  as
    4  added by chapter 28 of the laws of 1987, is amended to read as follows:
    5    (3)  Accounting  methods.  (A) A taxpayer's method of accounting under
    6  this article shall be the same as his OR HER method  of  accounting  for
    7  federal  income  tax  purposes,  WITH THE EXCEPTION OF THE PROVISIONS OF
    8  SUBPARAGRAPH (B) OF THIS PARAGRAPH.   In the absence of  any  method  of
    9  accounting  for  federal  income  tax  purposes, New York taxable income
   10  shall be computed under such method as in the opinion of the tax commis-
   11  sion clearly reflects income.
   12    (B) FOR THE PURPOSE OF COMPUTING NEW YORK TAXABLE INCOME,  A  TAXPAYER
   13  SHALL  NOT  BE  REQUIRED  TO  INCLUDE  IN SUCH COMPUTATION THE FIRST TWO
   14  HUNDRED FIFTY THOUSAND DOLLARS, WITH A CAP OF FIFTY THOUSAND DOLLARS PER
   15  TAXABLE YEAR, HE OR SHE EARNS FOLLOWING GRADUATION FROM ANY  COLLEGE  OR
   16  UNIVERSITY  HAVING  ATTAINED  A FOUR-YEAR DEGREE OR HIGHER, OR THE FIRST
   17  ONE HUNDRED FIFTY THOUSAND DOLLARS, WITH A CAP OF  TWENTY-FIVE  THOUSAND
   18  DOLLARS  PER TAXABLE YEAR, HE OR SHE EARNS FOLLOWING GRADUATION FROM ANY
   19  COLLEGE OR UNIVERSITY HAVING ATTAINED A TWO-YEAR DEGREE.
   20    S 3. This act shall take effect immediately, and shall apply to  taxa-
   21  ble years beginning the first of January following the effective date of
   22  this act.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09990-01-9