STATE OF NEW YORK
________________________________________________________________________
5010--A
2017-2018 Regular Sessions
IN SENATE
March 6, 2017
___________
Introduced by Sens. GOLDEN, SAVINO, FELDER, PHILLIPS -- read twice and
ordered printed, and when printed to be committed to the Committee on
Investigations and Government Operations -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the tax law, in relation to establishing the helping
open opportunities to learn tax credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (jjj) to read as follows:
3 (jjj) Helping open opportunities to learn tax credit. (1) General. A
4 resident low and middle income taxpayer shall be allowed a credit, to be
5 computed as provided in paragraph three of this subsection, against the
6 tax imposed by this article for the qualified primary or secondary
7 education tuition expenses paid by the taxpayer during the taxable year.
8 (2) Definitions. For purposes of this subsection, the following terms
9 shall have the following meanings:
10 (A) "Resident low and middle income taxpayer" shall mean a taxpayer
11 who is a full-year resident of this state and whose federal taxable
12 income is equal to or less than seven hundred twenty percent of the
13 federal poverty guidelines, as promulgated annually by the United States
14 department of health and human services, for the taxable year for which
15 this credit is claimed.
16 (B) "Qualified primary or secondary education tuition expenses" shall
17 mean the tuition required for the enrollment or attendance of an eligi-
18 ble student at a public or nonpublic school. Provided, however, that any
19 tuition payments made for such eligible student pursuant to the receipt
20 of financial aid or one or more scholarships shall be excluded from the
21 definition of the term "qualified primary or secondary education tuition
22 expenses" for such eligible student.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10291-02-7
S. 5010--A 2
1 (C) "Eligible student" shall mean any dependent of the taxpayer with
2 respect to whom the taxpayer is allowed an exemption under section six
3 hundred sixteen of this article for the taxable year who is enrolled in,
4 and for whom qualified primary and secondary education tuition expenses
5 have been paid for, kindergarten or grade one through twelve in a quali-
6 fied school.
7 (D) "Nonpublic school" means any not-for-profit pre-kindergarten
8 program or elementary, secondary sectarian or nonsectarian school
9 located in this state, other than a public school, that is providing
10 instruction at one or more locations to a student in accordance with
11 subdivision two of section thirty-two hundred four of the education law.
12 (E) "Public school" means any free elementary or secondary school in
13 this state guaranteed by article eleven of the constitution or charter
14 school authorized by article fifty-six of the education law.
15 (3) Amount of credit. The amount of credit that a resident low and
16 middle income taxpayer may claim for the qualified primary or secondary
17 education tuition expenses paid for each eligible student shall equal
18 the lesser of twelve percent of the total per pupil state public school
19 expenditures or fifteen percent of the qualified primary or secondary
20 education tuition expenses paid by the taxpayer during the taxable year
21 for such eligible student. The total state public school expenditures
22 shall equal the school aid, as reported in the state enacted budget
23 financial plan for the taxable year in which the school year began,
24 divided by the total number of students enrolled in kindergarten and
25 grades one through twelve at public schools in this state as published
26 by the department of education for such taxable year.
27 (4) Application of credit. If the amount of the credit allowed under
28 this subsection for any taxable year shall exceed the taxpayer's tax for
29 such year, the excess shall be treated as an overpayment of tax to be
30 credited or refunded in accordance with the provisions of section six
31 hundred eighty-six of this article, provided, however, that no interest
32 shall be paid thereon.
33 (5) Husband and wife. In the case of a husband and wife who file a
34 joint federal return, but who are required to determine their New York
35 taxes separately, the credit allowed pursuant to this subsection may be
36 applied against the tax imposed of either or divided between them as
37 they may elect.
38 § 2. This act shall take effect immediately and shall apply to taxable
39 years beginning after December 31, 2018.