STATE OF NEW YORK
________________________________________________________________________
2465
2023-2024 Regular Sessions
IN ASSEMBLY
January 26, 2023
___________
Introduced by M. of A. EPSTEIN -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to creating a tax credit for
employers who contribute to a college choice tuition savings account
on behalf of an employee
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210-B of the tax law is amended by adding a new
2 subdivision 59 to read as follows:
3 59. Employer college choice tuition savings contribution credit. (a)
4 Allowance of credit. A taxpayer shall be allowed a credit, to be
5 computed as provided in paragraph (b) of this subdivision, against the
6 tax imposed by this article, if it provides a contribution, on behalf of
7 an employee, to a family tuition account established under article four-
8 teen-A of the education law by such employee.
9 (b) Amount of credit. The credit allowed pursuant to paragraph (a) of
10 this subdivision shall be in an amount equal to the taxpayer's payment,
11 on behalf of an employee, to a family tuition account established under
12 article fourteen-A of the education law by such employee. Provided,
13 however, that no such credit allowed under this subdivision shall exceed
14 five thousand dollars per employee.
15 (c) Application of credit. The credit allowed under this subdivision
16 for any taxable year shall not reduce the tax due for such year to less
17 than the amount prescribed in paragraph (d) of subdivision one of
18 section two hundred ten of this article. If, however, the amount of
19 credits allowed under this subdivision for any taxable year reduces the
20 tax to such amount, any amount of credit thus not deductible in such
21 taxable year shall be treated as an overpayment of tax to be credited or
22 refunded in accordance with the provisions of section one thousand
23 eighty-six of this chapter. Provided, however, the provisions of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01647-01-3
A. 2465 2
1 subsection (c) of section one thousand eighty-eight of this chapter
2 notwithstanding, no interest shall be paid thereon.
3 (d) Credit recapture. For provisions requiring recapture of credit,
4 see section forty-four of this chapter.
5 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
6 of the tax law is amended by adding a new clause (xlx) to read as
7 follows:
8 (xlx) Employer collegeAmount of credit
9 choice tuition savingsunder subdivision
10 contribution credit underfifty-nine of section
11 subsection (ooo)two hundred ten-B
12 § 3. Section 606 of the tax law is amended by adding a new subsection
13 (ooo) to read as follows:
14 (ooo) Employer college choice tuition savings contribution credit.
15 (1) Allowance of credit. A taxpayer shall be allowed a credit, to be
16 computed as provided in paragraph two of this subsection, against the
17 tax imposed by this article, if it provides for a contribution, on
18 behalf of an employee, to a family tuition account established under
19 article fourteen-A of the education law by such employee.
20 (2) Amount of credit. The credit allowed pursuant to paragraph one of
21 this subsection shall be in an amount equal to the taxpayer's contrib-
22 ution, on behalf of an employee, to a family tuition account established
23 under article fourteen-A of the education law by such employee.
24 Provided, however, that no such credit allowed under this subsection
25 shall exceed five thousand dollars per employee.
26 (3) Application of credit. If the amount of the credit allowed under
27 this subsection for any taxable year shall exceed the taxpayer's tax for
28 such year, the excess shall be treated as an overpayment of tax to be
29 credited or refunded in accordance with the provisions of section six
30 hundred eighty-six of this article, provided, however, that no interest
31 shall be paid thereon.
32 (4) Credit recapture. For provisions requiring recapture of credit,
33 see section forty-four of this chapter.
34 § 4. Section 1511 of the tax law is amended by adding a new subdivi-
35 sion (ee) to read as follows:
36 (ee) Employer college choice tuition savings contribution credit. (1)
37 Allowance of credit. A taxpayer shall be allowed a credit, to be
38 computed as provided in paragraph two of this subdivision, against the
39 tax imposed by this article, if it provides a contribution, on behalf of
40 an employee, to a family tuition account established under article four-
41 teen-A of the education law by such employee.
42 (2) Amount of credit. The credit allowed pursuant to paragraph one of
43 this subdivision shall be in an amount equal to the taxpayer's payment,
44 on behalf of an employee, to a family tuition account established under
45 article fourteen-A of the education law by such employee. Provided,
46 however, that no such credit allowed under this subdivision shall exceed
47 five thousand dollars per employee.
48 (3) Application of credit. The credit allowed under this subdivision
49 shall not reduce the tax due for such year to be less than the minimum
50 fixed by paragraph four of subdivision (a) of section fifteen hundred
51 two or section fifteen hundred two-a of this article, whichever is
52 applicable. However, if the amount of the credit allowed under this
53 subdivision for any taxable year reduces the taxpayer's tax to such
54 amount, any amount of credit thus not deductible will be treated as an
55 overpayment of tax to be credited or refunded in accordance with the
56 provisions of section one thousand eighty-six of this chapter. Provided,
A. 2465 3
1 however, the provisions of subsection (c) of section one thousand eight-
2 y-eight of this chapter notwithstanding, no interest shall be paid ther-
3 eon.
4 (4) Credit recapture. For provisions requiring recapture of credit,
5 see section forty-four of this chapter.
6 § 5. This act shall take effect immediately and shall apply to taxable
7 years beginning on and after the first of January next succeeding the
8 date on which it shall have become a law.
