BILL NO A09783A
SAME AS SAME AS S07710
COSPNSR Stirpe, Clark, Otis, Camara, Colton, Gottfried, Cusick, Hooper,
MLTSPNSR Abbate, Cook, Lupinacci, Raia, Rivera, Roberts, Skartados, Sweeney
Amd S606, Tax L
Creates a college preparation expense tax credit for up to three year's per
child/individual for up to $500 per year for qualified college preparation
TITLE OF BILL: An act to amend the tax law, in relation to
establishing the college preparation tax credit act
PURPOSE: To help families meet the costs of college preparation by
allowing them to qualify for a tax credit of up to five hundred
dollars per child.
SUMMARY OF PROVISIONS: Section I titles the bill.
Section II amends section 606 of the tax law by adding a new
subsection (ccc) which allows a resident taxpayer a credit of up to
five hundred dollars per child for qualified college preparation
expenses paid or incurred by the taxpayer during a taxable year.
Section III sets forth the effective date.
JUSTIFICATION: College affordability is an issue that working and
middle class families continue to struggle with as the expenses for
college preparation continue to skyrocket. The costs incurred during
the application process often become a financial burden for families
who cannot afford to pay for admission tests such as the SAT and the
ACT and the preparation courses offered for such tests.
This bill would provide these families with the option to qualify for
a tax credit of up to five hundred dollars per child for college
preparation expenses paid or incurred during a taxable year. The term
"qualified" would apply to the fees required to take the SAT, the ACT,
SAT subject tests, Advanced Placement (AP) tests, preparation classes,
and admission applications. With tuition costs rising, it is important
to provide these families with some form of financial relief as they
work to ensure the academic success of their children.
LEGISLATIVE HISTORY: This is a new bill in the Assembly.
FISCAL IMPACT ON THE STATE: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
S T A T E O F N E W Y O R K
I N A S S E M B L Y
May 22, 2014
Introduced by M. of A. ROZIC -- read once and referred to the Committee
on Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing the college
preparation tax credit act
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 "college
2 preparation tax credit act".
3 S 2. Section 606 of the tax law is amended by adding a new subsection
4 (ccc) to read as follows:
5 (CCC) COLLEGE PREPARATION EXPENSE CREDIT. (1) A RESIDENT TAXPAYER
6 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
7 ALLOWABLE COLLEGE PREPARATION EXPENSES. EACH TAXABLE YEAR, A CREDIT OF
8 UP TO FIVE HUNDRED DOLLARS PER CHILD SHALL BE ALLOWED FOR QUALIFIED
9 COLLEGE PREPARATION EXPENSES PAID OR INCURRED BY THE TAXPAYER DURING
10 SUCH TAXABLE YEAR. NO CREDIT SHALL BE ALLOWED FOR ANY EXPENSES PAID OR
11 INCURRED DURING THE TAXABLE YEAR WITH RESPECT TO ANY INDIVIDUAL FOR WHOM
12 AN ELECTION IS NOT IN EFFECT UNDER THIS SUBSECTION FOR SUCH TAXABLE
13 YEAR. AN ELECTION MAY NOT BE MADE FOR ANY TAXABLE YEAR IF SUCH AN
14 ELECTION IS IN EFFECT WITH RESPECT TO SUCH INDIVIDUAL FOR ANY THREE
15 PRIOR TAXABLE YEARS.
16 (2) QUALIFIED COLLEGE PREPARATION EXPENSES. FOR PURPOSES OF THIS
17 SUBSECTION, THE TERM "QUALIFIED COLLEGE PREPARATION EXPENSES" MEANS
18 AMOUNTS PAID OR INCURRED FOR:
19 (A) FEES REQUIRED FOR TAKING ANY ADVANCED PLACEMENT OR INTERNATIONAL
20 BACCALAUREATE EXAM;
21 (B) FEES REQUIRED FOR TAKING THE SAT, THE ACT, OR ANY SAT SUBJECT
23 (C) EXPENSES RELATED TO PREPARATION INCLUDING TUTORIAL SERVICES AND
24 PREPARATION CLASSES FOR ANY EXAM DESCRIBED IN SUBPARAGRAPH (A) OR (B) OF
25 THIS PARAGRAPH;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
A. 9783--A 2
1 (D) FEES AND EXPENSES RELATED TO APPLICATIONS FOR ADMISSION TO PURSUE
2 A POSTSECONDARY COURSE OF STUDY AT AN ELIGIBLE EDUCATIONAL INSTITUTION;
4 (E) SUCH OTHER SIMILAR EXPENSES AND FEES AS THE COMMISSIONER MAY BY
5 REGULATION PRESCRIBE.
6 (3) TREATMENT OF EXPENSES PAID BY DEPENDENT. IF A DEDUCTION UNDER THIS
7 SUBSECTION WITH RESPECT TO AN INDIVIDUAL IS ALLOWED TO ANOTHER TAXPAYER
8 FOR A TAXABLE YEAR BEGINNING IN THE CALENDAR YEAR IN WHICH SUCH INDIVID-
9 UAL'S TAXABLE YEAR BEGINS:
10 (A) NO CREDIT SHALL BE ALLOWED UNDER PARAGRAPH ONE OF THIS SUBSECTION
11 TO SUCH INDIVIDUAL FOR SUCH INDIVIDUAL'S TAXABLE YEAR; AND
12 (B) QUALIFIED COLLEGE PREPARATION EXPENSES PAID BY SUCH INDIVIDUAL
13 DURING SUCH INDIVIDUAL'S TAXABLE YEAR SHALL BE TREATED FOR PURPOSES OF
14 THIS SUBSECTION AS PAID BY SUCH OTHER TAXPAYER.
15 S 3. This act shall take effect immediately.