NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7450
SPONSOR: Titone TITLE OF BILL:
An act to amend the tax law, in relation to increasing the authorized
resident taxpayer contribution to family tuition accounts to $10,000 per
taxable year for each beneficiary thereof
PURPOSE OR GENERAL IDEA OF BILL:
Increases to $10,000 the contribution that a resident taxpayer may make
to family tuition accounts for each child during a taxable year.
SUMMARY OF PROVISIONS:
Contributions made by an account owner under the New York State college
choice tuition savings program should not be deductible for federal
income tax purposes. However, individual or the head of household shall
not exceed five ten thousand dollars for the account(s) of each benefi-
ciary.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
JUSTIFICATION:
This legislation allows parents to save tax-free money for each child
attending college. This allows the quality of life to improve for both
parents and students. Parents have the opportunity to enroll multiple
children in college, while the opportunity for students to have better
lives and compete for better jobs increases.
PRIOR LEGISLATIVE HISTORY:
(2007-2008) A10222 - Referred to Ways and Means
(2009-2010) A10328 - Referred to Ways and Means
(2013-2014) A 3879 - Referred to Ways and Means
(2015-2016) A 2969 - Referred to Ways and Means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined
EFFECTIVE DATE:
This act shall take effect January 1, 2018
STATE OF NEW YORK
________________________________________________________________________
7450
2017-2018 Regular Sessions
IN ASSEMBLY
April 26, 2017
___________
Introduced by M. of A. TITONE, CAHILL, BRINDISI -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the authorized
resident taxpayer contribution to family tuition accounts to $10,000
per taxable year for each beneficiary thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 32 of subsection (c) of section 612 of the tax
2 law, as amended by chapter 81 of the laws of 2008, is amended to read as
3 follows:
4 (32) Contributions made during the taxable year by an account owner to
5 one or more family tuition accounts established under the New York state
6 college choice tuition savings program provided for under article four-
7 teen-A of the education law, to the extent not deductible or eligible
8 for credit for federal income tax purposes, provided, however, the
9 exclusion provided for in this paragraph; for an individual or head of
10 household, shall not exceed [five] ten thousand dollars [for an individ-
11 ual or head of household] for the account or accounts of each designated
12 beneficiary, as defined in section six hundred ninety-five-b of the
13 education law, and for married couples who file joint tax returns, shall
14 not exceed [ten] twenty thousand dollars for the account or accounts of
15 each designated beneficiary, as defined in section six hundred ninety-
16 five-b of the education law; provided, further, that such exclusion
17 shall be available only to the account owner and not to any other
18 person.
19 § 2. This act shall take effect January 1, 2018.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11039-01-7
