A03478 Summary:

BILL NOA03478
 
SAME ASNo Same As
 
SPONSORKolb (MS)
 
COSPNSRMontesano, Palmesano, Raia, Hawley, Barclay, Garbarino, Malliotakis, Giglio, Brabenec, Goodell, DiPietro, Norris, Smith, Mikulin, Ashby, Finch, Walsh, Miller B, Manktelow, Miller ML, LiPetri
 
MLTSPNSRBlankenbush, Friend
 
Amd §§606 & 612, Tax L
 
Enacts Retain-NY by implementing tuition tax credits and increasing the amount of an allowable deduction.
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A03478 Actions:

BILL NOA03478
 
01/29/2019referred to ways and means
01/08/2020referred to ways and means
07/17/2020held for consideration in ways and means
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A03478 Committee Votes:

WAYS AND MEANS Chair:Weinstein DATE:07/17/2020AYE/NAY:22/10 Action: Held for Consideration
WeinsteinAyeRaNay
LentolAyeCrouchNay
SchimmingerExcusedFitzpatrickNay
GlickAyeHawleyNay
NolanAyeMalliotakisNay
PretlowAyeMontesanoNay
PerryAyeBlankenbushNay
ColtonAyePalmesanoNay
CookAyeNorrisNay
CahillAyeBrabenecNay
AubryAye
CusickAye
OrtizExcused
BenedettoAye
WeprinAye
RodriguezAye
RamosAye
BraunsteinAye
McDonaldAye
RozicAye
SimotasAye
DinowitzAye
MillerAye
JoynerAye

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A03478 Floor Votes:

There are no votes for this bill in this legislative session.
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A03478 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3478
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 29, 2019
                                       ___________
 
        Introduced  by  M.  of  A.  KOLB,  MONTESANO,  PALMESANO,  RAIA, HAWLEY,
          BARCLAY, GARBARINO, MALLIOTAKIS, GIGLIO, BRABENEC, GOODELL,  DiPIETRO,
          NORRIS, SMITH, MIKULIN, ASHBY, FINCH -- Multi-Sponsored by -- M. of A.
          BLANKENBUSH, FRIEND -- read once and referred to the Committee on Ways
          and Means

        AN  ACT  to  amend  the tax law, in relation to a tuition tax credit and
          increasing the amount of an allowable deduction (Part A); and to amend
          the tax law, in relation to reducing income by the amount of  interest
          paid for student loans (Part B)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law components of legislation relating
     2  to Retain-NY. Each component is wholly contained within a  Part  identi-
     3  fied  as  Parts  A  through  B.  The  effective date for each particular
     4  provision contained within such Part is set forth in the last section of
     5  such Part. Any provision in any section contained within a Part, includ-
     6  ing the effective date of the Part, which makes reference to  a  section
     7  "of  this  act", when used in connection with that particular component,
     8  shall be deemed to mean and refer to the corresponding  section  of  the
     9  Part  in  which  it  is  found. Section three of this act sets forth the
    10  general effective date of this act.
 
    11                                   PART A
 
    12    Section 1. Subparagraph (A)  of  paragraph  2  of  subsection  (t)  of
    13  section 606 of the tax law, as amended by section 1 of part N of chapter
    14  85 of the laws of 2002, is amended to read as follows:
    15    (A)  The  term  "allowable  college  tuition  expenses" shall mean the
    16  amount of qualified college tuition expenses of eligible  students  paid
    17  by  the  taxpayer  during  the  taxable year[,]. The amount of qualified
    18  college tuition expenses shall be limited [to] as follows:  for  taxable
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05711-01-9

        A. 3478                             2
 
     1  years beginning after two thousand and before two thousand nineteen, ten
     2  thousand  dollars  for each such student, for taxable years beginning in
     3  or after two thousand nineteen, fifteen thousand dollars for  each  such
     4  student;
     5    §  2.  Paragraph 4 of subsection (t) of section 606 of the tax law, as
     6  added by section 1 of part DD of chapter 63 of  the  laws  of  2000,  is
     7  amended to read as follows:
     8    (4)  Amount of credit. [If allowable college tuition expenses are less
     9  than five thousand dollars, the amount of the credit provided under this
    10  subsection shall be equal to the applicable percentage of the lesser  of
    11  allowable  college tuition expenses or two hundred dollars. If allowable
    12  college tuition expenses are five thousand dollars or more,  the  amount
    13  of  the  credit  provided  under  this  subsection shall be equal to the
    14  applicable percentage of the allowable college tuition  expenses  multi-
    15  plied  by four percent.] The amount of the credit shall be determined in
    16  accordance with the following schedules:
    17    (A) For taxable years beginning after  two  thousand  and  before  two
    18  thousand nineteen:
    19  If allowable college tuition
    20  expenses are:                        The tax credit is equal to:
    21  Less than five thousand dollars      the applicable percentage of the
    22                                       lesser of allowable college
    23                                       tuition expenses or two hundred
    24                                       dollars
    25  Five thousand dollars or more        the applicable percentage
    26                                       of allowable college tuition
    27                                       expenses multiplied by four percent
 
    28    (B) For taxable years beginning in or after two thousand nineteen:
    29  If allowable college tuition
    30  expenses are:                        The tax credit is equal to:
    31  Less than seven thousand five        the lesser of allowable college
    32  hundred dollars                      tuition expenses or two hundred
    33                                       ninety-five dollars
    34  Seven thousand five hundred          the allowable college tuition
    35  dollars or more                      expenses multiplied by four percent
 
    36    Such  applicable  percentage  shall be twenty-five percent for taxable
    37  years beginning in two thousand one, fifty  percent  for  taxable  years
    38  beginning  in  two  thousand two, seventy-five percent for taxable years
    39  beginning in two thousand three and  one  hundred  percent  for  taxable
    40  years beginning after two thousand three.
    41    § 3. Subsection (t) of section 606 of the tax law is amended by adding
    42  a new paragraph 4-a to read as follows:
    43    (4-a)  Inflation  adjustment.  (A)  For  taxable years beginning in or
    44  after two thousand twenty, the dollar amounts  in  subparagraph  (A)  of
    45  paragraph  two and paragraph four of this subsection shall be multiplied
    46  by one plus the inflation adjustment.
    47    (B) The inflation adjustment for any tax year shall be the greater of:
    48  (i) two one-hundredths; or (ii) the higher education price index for the
    49  academic fiscal year in the immediately preceding  tax  year,  with  the
    50  result  expressed  as a decimal to four places. For the purposes of this
    51  paragraph, the higher education price index means the  higher  education
    52  price index published by the Common Fund Institute.

        A. 3478                             3
 
     1    (C) If the product of the amounts in subparagraph (A) and subparagraph
     2  (B)  of  this paragraph is not a multiple of five dollars, such increase
     3  shall be rounded to the next multiple of five dollars.
     4    § 4. This act shall take effect immediately.
 
     5                                   PART B
 
     6    Section  1. Subsection (c) of section 612 of the tax law is amended by
     7  adding a new paragraph 43 to read as follows:
     8    (43) For tax years commencing after December first, two thousand nine-
     9  teen, for eligible borrowers, all interest paid on student loans to  the
    10  extent  not  deductible in determining federal adjusted gross income and
    11  not reimbursed. For the purposes of this paragraph, the following  terms
    12  have the following meanings:
    13    (i)  "student  loans"  means any indebtedness incurred by the taxpayer
    14  solely for any qualified education loan defined by section 221(d) of the
    15  Internal Revenue Code from a lender.
    16    (ii) "eligible borrower"  shall  mean  a  taxpayer  who  has  incurred
    17  indebtedness  on  student  loans  as defined in subparagraph (i) of this
    18  paragraph on behalf of the  taxpayer,  the  taxpayer's  spouse,  or  any
    19  dependent of the taxpayer at the time the indebtedness was incurred.
    20    (iii)  "lender"  means  a  bank,  savings and loan association, credit
    21  union, pension fund, insurance company, school, or state lending agency.
    22    § 2. This act shall take effect immediately.
    23    § 2. Severability. If any clause, sentence, paragraph, section or part
    24  of this act shall be adjudged by any court of competent jurisdiction  to
    25  be  invalid  and  after  exhaustion  of all further judicial review, the
    26  judgment shall not affect, impair, or invalidate the remainder  thereof,
    27  but  shall  be  confined in its operation to the clause, sentence, para-
    28  graph, section or part of this act directly involved in the  controversy
    29  in which the judgment shall have been rendered.
    30    §  3.  This  act shall take effect immediately provided, however, that
    31  the applicable effective date of Parts A through B of this act shall  be
    32  as specifically set forth in the last section of such Parts.
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