STATE OF NEW YORK
________________________________________________________________________
5881
2021-2022 Regular Sessions
IN ASSEMBLY
March 1, 2021
___________
Introduced by M. of A. BARCLAY, MONTESANO, PALMESANO, HAWLEY,
J. M. GIGLIO, BRABENEC, DiPIETRO, GOODELL, NORRIS, SMITH, MIKULIN,
ASHBY, WALSH, MANKTELOW, B. MILLER, M. MILLER, JENSEN, GALLAHAN,
LEMONDES, DeSTEFANO, SIMPSON -- Multi-Sponsored by -- M. of A. BLANK-
ENBUSH, BROWN, FRIEND, LAWLER -- read once and referred to the Commit-
tee 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02619-01-1
A. 5881 2
1 college tuition expenses shall be limited [to] as follows: for taxable
2 years beginning after two thousand and before two thousand twenty-one,
3 ten thousand dollars for each such student, for taxable years beginning
4 in or after two thousand twenty-one, fifteen thousand dollars for each
5 such student;
6 § 2. Paragraph 4 of subsection (t) of section 606 of the tax law, as
7 added by section 1 of part DD of chapter 63 of the laws of 2000, is
8 amended to read as follows:
9 (4) Amount of credit. [If allowable college tuition expenses are less
10 than five thousand dollars, the amount of the credit provided under this
11 subsection shall be equal to the applicable percentage of the lesser of
12 allowable college tuition expenses or two hundred dollars. If allowable
13 college tuition expenses are five thousand dollars or more, the amount
14 of the credit provided under this subsection shall be equal to the
15 applicable percentage of the allowable college tuition expenses multi-
16 plied by four percent.] The amount of the credit shall be determined in
17 accordance with the following schedules:
18 (A) For taxable years beginning after two thousand and before two
19 thousand twenty-one:
20 If allowable college tuition
21 expenses are:The tax credit is equal to:
22 Less than five thousand dollarsthe applicable percentage of the
23 lesser of allowable college
24 tuition expenses or two hundred
25 dollars
26 Five thousand dollars or morethe applicable percentage
27 of allowable college tuition
28 expenses multiplied by four percent
29 (B) For taxable years beginning in or after two thousand twenty-one:
30 If allowable college tuition
31 expenses are:The tax credit is equal to:
32 Less than seven thousand fivethe lesser of allowable college
33 hundred dollarstuition expenses or two hundred
34 ninety-five dollars
35 Seven thousand five hundredthe allowable college tuition
36 dollars or moreexpenses multiplied by four percent
37 Such applicable percentage shall be twenty-five percent for taxable
38 years beginning in two thousand one, fifty percent for taxable years
39 beginning in two thousand two, seventy-five percent for taxable years
40 beginning in two thousand three and one hundred percent for taxable
41 years beginning after two thousand three.
42 § 3. Subsection (t) of section 606 of the tax law is amended by adding
43 a new paragraph 4-a to read as follows:
44 (4-a) Inflation adjustment. (A) For taxable years beginning in or
45 after two thousand twenty-two, the dollar amounts in subparagraph (A) of
46 paragraph two and paragraph four of this subsection shall be multiplied
47 by one plus the inflation adjustment.
48 (B) The inflation adjustment for any tax year shall be the greater of:
49 (i) two one-hundredths; or (ii) the higher education price index for the
50 academic fiscal year in the immediately preceding tax year, with the
51 result expressed as a decimal to four places. For the purposes of this
52 paragraph, the higher education price index means the higher education
53 price index published by the Common Fund Institute.
A. 5881 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 twen-
9 ty-one, for eligible borrowers, all interest paid on student loans to
10 the extent not deductible in determining federal adjusted gross income
11 and not reimbursed. For the purposes of this paragraph, the following
12 terms 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.
