A09783 Summary:

BILL NO    A09783A

SAME AS    SAME AS S07710

SPONSOR    Rozic

COSPNSR    Stirpe, Clark, Otis, Camara, Colton, Gottfried, Cusick, Hooper,
           Mosley

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
expenses.
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A09783 Actions:

BILL NO    A09783A

05/22/2014 referred to ways and means
05/27/2014 amend (t) and recommit to ways and means
05/27/2014 print number 9783a
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A09783 Votes:

There are no votes for this bill in this legislative session.
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A09783 Memo:

BILL NUMBER:A9783A

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.
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A09783 Text:

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

                                        9783--A

                                 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
   22  TEST;
   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.
                                                                  LBD15301-03-4
       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;
    3  AND
    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.
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