Creates a tax credit for businesses that develop a "college to work" program, paying the tuition of individuals in exchange for the individual committing to work for the business after the individuals graduation from an institution of higher learning; provides the tax credit shall be for twenty-five percent of the individual's tuition expenses not to exceed five thousand dollars.
STATE OF NEW YORK
________________________________________________________________________
2233
2013-2014 Regular Sessions
IN ASSEMBLY(Prefiled)
January 9, 2013
___________
Introduced by M. of A. CROUCH, P. LOPEZ, HAWLEY, McLAUGHLIN -- Multi-
Sponsored by -- M. of A. BARCLAY, PALMESANO, STEVENSON -- read once
and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a credit for
developing a college to work program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 22-a to read as follows:
3 22-a. Credit for college to work program. (a) Allowance of credit. A
4 taxpayer shall be allowed a credit, to be computed as hereinafter
5 provided, against the tax imposed by this article, based upon its
6 payment of tuition to an institution of higher education on behalf of an
7 individual in exchange for the individual agreeing to work for the
8 taxpayer for a number of years, as set forth in a written agreement
9 between the taxpayer and the individual.
10 (b) Tuition. For the purposes of this credit, the term "tuition" shall
11 mean the tuition and fees paid for the enrollment and attendance of an
12 individual at an institution of higher education, as well as monies paid
13 for textbooks in connection with attendance at an institution of higher
14 education. Provided, however, any amounts which have been paid for or
15 reimbursed by any other scholarships or financial aid, or tuition
16 required for enrollment or attendance in a course of study leading to
17 the granting of a post baccalaureate or other graduate degree, shall be
18 excluded from the definition of "tuition".
19 (c) Institution of higher education. For the purposes of this credit,
20 the term "institution of higher education" shall mean any institution of
21 higher education, recognized and approved by the regents, or any succes-
22 sor organization, of the university of the state of New York or accred-
23 ited by a nationally recognized accrediting agency or association
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06289-01-3
A. 2233 2
1 accepted as such by the regents, or any successor organization, of the
2 university of the state of New York, which provides a course of study
3 leading to the granting of a post-secondary degree, certificate or
4 diploma.
5 (d) Qualified individual. For purposes of this credit, the term "qual-
6 ified individual" shall mean any individual who is not a spouse, child
7 or dependent of the taxpayer or any individual who is not a spouse,
8 child or dependent of any officer or employee of the taxpayer.
9 (e) Written agreement. For purposes of this credit, the term "written
10 agreement" shall mean a document signed and dated by both the taxpayer
11 and the qualified individual which contains provisions including but not
12 limited to the minimum salary which the taxpayer will pay to the quali-
13 fied individual upon completion of the individual's degree; the required
14 duration of employment upon completion of the individual's degree; and
15 the parties' respective responsibilities in the event that the taxpayer
16 ceases operations or later decides not to offer employment to the indi-
17 vidual upon completion of his/her degree or in the event that the quali-
18 fied individual fails to complete the degree or to work for the taxpayer
19 for the agreed upon term.
20 (f) Amount of credit. Notwithstanding the provisions of any other law,
21 a taxpayer which provides for the payment of an individual's tuition
22 under the college to work program established by this subdivision, shall
23 be allowed a credit against the tax imposed by this article, to the
24 extent of twenty-five percent of monies paid for each individual's
25 tuition, but such credit shall not exceed five thousand dollars for one
26 year for each such qualified individual.
27 (g) Carryover. The credit allowed under this subdivision for any taxa-
28 ble year shall not reduce the tax due for such year to less than the
29 higher of the amounts prescribed in paragraphs (c) and (d) of subdivi-
30 sion one of this section. Provided, however, if the amount of credit
31 allowable under this subdivision for any taxable year reduces the tax to
32 such amount, any amount of credit not deductible in such taxable year
33 may be carried over to the following year or years, and may be deducted
34 from the taxpayer's tax for such year or years.
35 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
36 of the tax law is amended by adding a new clause (xxxv) to read as
37 follows:
38 (xxxv) College to work programAmount of credit under
39 credit under subsection (s-1) subdivision twenty-two-a
40 of section two hundred ten
41 § 3. Section 606 of the tax law is amended by adding a new subsection
42 (s-1) to read as follows:
43 (s-1) Credit for college to work program. (1) Allowance of credit. A
44 taxpayer shall be allowed a credit, to be computed as hereinafter
45 provided, against the tax imposed by this article, based upon such
46 taxpayer's payment of tuition to an institution of higher education on
47 behalf of an individual in exchange for the individual agreeing to work
48 for the taxpayer for a number of years, as set forth in a written agree-
49 ment between the taxpayer and the individual.
50 (2) Tuition. For the purposes of this credit, the term "tuition" shall
51 mean the tuition and fees paid for the enrollment and attendance of an
52 individual at an institution of higher education, as well as monies paid
53 for textbooks in connection with attendance at an institution of higher
54 education. Provided, however, any amounts which have been paid for or
A. 2233 3
1 reimbursed by any other scholarships or financial aid, or tuition
2 required for enrollment or attendance in a course of study leading to
3 the granting of a post baccalaureate or other graduate degree, shall be
4 excluded from the definition of "tuition".
5 (3) Institution of higher education. For the purposes of this credit,
6 the term "institution of higher education" shall mean any institution of
7 higher education, recognized and approved by the regents, or any succes-
8 sor organization, of the university of the state of New York or accred-
9 ited by a nationally recognized accrediting agency or association
10 accepted as such by the regents, or any successor organization, of the
11 university of the state of New York, which provides a course of study
12 leading to the granting of a post-secondary degree, certificate or
13 diploma.
14 (4) Qualified individual. For purposes of this credit, the term "qual-
15 ified individual" shall mean any individual who is not a spouse, child
16 or dependent of the taxpayer or any individual who is not a spouse,
17 child or dependent of any officer or employee of the taxpayer.
18 (5) Written agreement. For purposes of this credit, the term "written
19 agreement" shall mean a document signed and dated by both the taxpayer
20 and the qualified individual which contains provisions including but not
21 limited to the minimum salary which the taxpayer will pay to the quali-
22 fied individual upon completion of the individual's degree; the required
23 duration of employment upon completion of the individual's degree; and
24 the parties' respective responsibilities in the event that the taxpayer
25 ceases operations or later decides not to offer employment to the indi-
26 vidual upon completion of his/her degree or in the event that the quali-
27 fied individual fails to complete the degree or to work for the taxpayer
28 for the agreed upon term.
29 (6) Amount of credit. Notwithstanding the provisions of any other law,
30 a taxpayer who provides for the payment of an individual's tuition under
31 the college to work program established by this subsection, shall be
32 allowed a credit against the tax imposed by this article, to the extent
33 of twenty-five percent of monies paid for each individual's tuition, but
34 such credit shall not exceed five thousand dollars for one year for each
35 such qualified individual.
36 (7) Carryover. If the amount of credit allowable under this subsection
37 for any taxable year shall exceed the taxpayer's tax amount, any amount
38 of the excess may be carried over to the following year or years, and
39 may be deducted from the taxpayer's tax for such year or years.
40 § 4. This act shall take effect immediately and shall apply to all
41 taxable years commencing after January 1, 2012.
