STATE OF NEW YORK
________________________________________________________________________
3850--A
2017-2018 Regular Sessions
IN SENATE
January 27, 2017
___________
Introduced by Sen. LAVALLE -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- recommitted to the Committee on Investigations and
Government Operations in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the tax law, in relation to providing a tax credit for
allowable college expenses
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 (ccc) to read as follows:
3 (ccc) Stay in New York credit. (1) General. (A) A resident taxpayer
4 shall be allowed a credit against the tax imposed by this article for
5 allowable college expenses. The amount of the credit shall be equal to
6 twenty-five percent of allowable college expenses, capped at three thou-
7 sand dollars. The credit shall be allowed only in the first taxable year
8 subsequent to the taxpayer's completion of a course of study leading to
9 the granting of a baccalaureate degree and in each of the next three
10 taxable years.
11 (B) In order to qualify for the credit, the eligible taxpayer shall:
12 (i) have completed the course of study leading to the granting of a
13 baccalaureate degree from an institution of higher education within four
14 years from the commencement of such course of study. Provided, however,
15 if the eligible taxpayer was employed in excess of three hundred hours
16 per semester, the eligible taxpayer shall have completed the course of
17 study leading to the granting of a baccalaureate degree within five
18 years from the commencement of such course of study;
19 (ii) be employed full-time within the state; and
20 (iii) have completed twenty hours of community service per semester of
21 enrollment in an institution of higher education. Provided, however, for
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09349-02-8
S. 3850--A 2
1 those eligible taxpayers who have been granted degrees within three
2 years of the effective date of this subsection, such taxpayers shall
3 complete the community service within the first taxable year in which
4 the credit is claimed.
5 (C) For eligible taxpayers who enroll in a course of study leading to
6 the granting of a post baccalaureate or other graduate degree immediate-
7 ly following the receipt of a baccalaureate degree, the credit shall be
8 allowed in the first taxable year subsequent to the taxpayer's
9 completion of such degree or when such taxpayer ceases to be enrolled in
10 such course of study and in each of the next three taxable years
11 provided all other qualifications of this subsection are met.
12 (2) Allowable and qualified college expenses. For the purposes of this
13 credit:
14 (A) The term "allowable college expenses" shall mean the total amount
15 of qualified college expenses incurred by the taxpayer during the
16 taxpayer's enrollment in a course of study leading to the granting of a
17 baccalaureate degree from an institution of higher education.
18 (B) The term "qualified college expenses" shall mean the tuition
19 required for the enrollment or attendance of the taxpayer at an institu-
20 tion of higher education. Provided, however, tuition payments made
21 pursuant to the receipt of any scholarships or financial aid shall be
22 excluded from the definition of "qualified college expenses".
23 (3) Institution of higher education. For the purposes of this credit,
24 the term "institution of higher education" shall mean any institution of
25 higher education located in the state, recognized and approved by the
26 regents, or any successor organization, of the university of the state
27 of New York or accredited by a nationally recognized accrediting agency
28 or association accepted as such by the regents, or any successor organ-
29 ization, of the university of the state of New York, which provides a
30 course of study leading to the granting of a post-secondary degree,
31 certificate or diploma.
32 (4) Refundability. The credit under this subsection shall be allowed
33 against the taxes imposed by this article for the taxable year reduced
34 by the credits permitted by this article. If the credit exceeds the tax
35 as so reduced, the taxpayer may receive, and the comptroller, subject to
36 a certificate of the commissioner, shall pay as an overpayment, without
37 interest, the amount of such excess.
38 § 2. Subparagraph (A) of paragraph 2 of subsection (t) of section 606
39 of the tax law, as amended by section 1 of part N of chapter 85 of the
40 laws of 2002, is amended to read as follows:
41 (A) The term "allowable college tuition expenses" shall mean the
42 amount of qualified college tuition expenses of eligible students paid
43 by the taxpayer during the taxable year[,]. The amount of qualified
44 college tuition expenses shall be limited [to] as follows: for taxable
45 years beginning after two thousand and before two thousand twenty ten
46 thousand dollars for each such student; for taxable years beginning in
47 two thousand twenty, twelve thousand dollars for each student; for taxa-
48 ble years beginning in two thousand twenty-one, fourteen thousand
49 dollars for each student; for taxable years beginning in two thousand
50 twenty-two, sixteen thousand dollars for each student; for taxable years
51 beginning in two thousand twenty-three, eighteen thousand dollars for
52 each student; and for taxable years beginning after two thousand twen-
53 ty-three, twenty thousand dollars per student;
54 § 3. Paragraph 4 of subsection (t) of section 606 of the tax law, as
55 added by section 1 of part DD of chapter 63 of the laws of 2000, is
56 amended to read as follows:
S. 3850--A 3
1 (4) Amount of credit. [If allowable college tuition expenses are less
2 than five thousand dollars, the amount of the credit provided under this
3 subsection shall be equal to the applicable percentage of the lesser of
4 allowable college tuition expenses or two hundred dollars. If allowable
5 college tuition expenses are five thousand dollars or more, the amount
6 of the credit provided under this subsection shall be equal to the
7 applicable percentage of the allowable college tuition expenses multi-
8 plied by four percent.]
9 The amount of the credit shall be determined in accordance with the
10 following schedules:
11 (A) For taxable years beginning after two thousand and before two
12 thousand twenty:
13 If allowable college tuitionThe tax credit is equal to:
14 expenses are:
15 Less than five thousand dollarsthe applicable percentage of the
16 lesser of allowable college tuition
17 expenses or two hundred dollars
18 Five thousand dollars or morethe applicable percentage of
19 allowable college tuition expenses
20 multiplied by four percent
21 (B) For taxable years beginning in two thousand twenty:
22 If allowable college tuitionThe tax credit is equal to:
23 expenses are:
24 Less than six thousand dollarsthe lesser of allowable college
25 tuition expenses or two hundred
26 forty dollars
27 Six thousand dollars or morethe allowable college tuition
28 expenses multiplied by four percent
29 (C) For taxable years beginning in two thousand twenty-one:
30 If allowable college tuitionThe tax credit is equal to:
31 expenses are:
32 Less than seven thousand dollarsthe lesser of allowable college
33 tuition expenses or two hundred
34 eighty dollars
35 Seven thousand dollars or more the allowable college tuition
36 expenses multiplied by four percent
37 (D) For taxable years beginning in two thousand twenty-two:
38 If allowable college tuitionThe tax credit is equal to:
39 expenses are:
40 Less than eight thousand dollarsthe lesser of allowable college
41 tuition expenses or three hundred
42 twenty dollars
43 Eight thousand dollars or morethe allowable college tuition
44 expenses multiplied by four percent
45 (E) For taxable years beginning in two thousand twenty-three:
46 If allowable college tuitionThe tax credit is equal to:
47 expenses are:
48 Less than nine thousand dollars the lesser of allowable college
49 tuition expenses or three hundred
50 sixty dollars
51 Nine thousand dollars or more the allowable college tuition
52 expenses multiplied by four percent
53 (F) For taxable years beginning after two thousand twenty-three:
54 If allowable college tuitionThe tax credit is equal to:
55 expenses are:
56 Less than ten thousand dollars the lesser of allowable college
S. 3850--A 4
1 tuition expenses or four hundred
2 dollars
3 Ten thousand dollars or more the allowable college tuition
4 expenses multiplied by four percent
5 Such applicable percentage shall be twenty-five percent for taxable
6 years beginning in two thousand one, fifty percent for taxable years
7 beginning in two thousand two, seventy-five percent for taxable years
8 beginning in two thousand three and one hundred percent for taxable
9 years beginning after two thousand three.
10 § 4. Subsection (t) of section 606 of the tax law is amended by adding
11 a new paragraph 4-a to read as follows:
12 (4-a) Inflation adjustment. (A) For taxable years beginning in or
13 after two thousand twenty-four, the dollar amounts in subparagraph (A)
14 of paragraph two and paragraph four of this subsection shall be multi-
15 plied by one plus the inflation adjustment.
16 (B) The inflation adjustment for any taxable year shall be the
17 percentage, if any, by which the higher education price index for the
18 academic fiscal year ending in the immediately preceding taxable year
19 exceeds the higher education price index for the academic fiscal year
20 ending June, two thousand twenty-three. For the purposes of this para-
21 graph, the higher education price index means the higher education price
22 index published by the Commonfund Institute.
23 (C) If the product of the amounts in subparagraphs (A) and (B) of this
24 paragraph is not a multiple of five dollars, such increase shall be
25 rounded to the next multiple of five dollars.
26 § 5. This act shall take effect immediately and shall apply to taxable
27 years beginning on or after January 1, 2020; provided, however, that
28 section one of this act shall apply to taxable years beginning on or
29 after January 1, 2021.
