Amends the definition of the term "allowable college tuition expenses"; establishes a new schedule of tax credits for allowable college tuition expenses.
STATE OF NEW YORK
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7657
IN SENATE
February 4, 2020
___________
Introduced by Sens. LAVALLE, GALLIVAN -- read twice and ordered printed,
and when printed to be committed to the Committee on Investigations
and Government Operations
AN ACT to amend the tax law, in relation to the definition of "allowable
college tuition expenses" and the tax credit allowed for such expenses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (A) of paragraph 2 of subsection (t) of
2 section 606 of the tax law, as amended by section 1 of part N of chapter
3 85 of the laws of 2002, is amended to read as follows:
4 (A) The term "allowable college tuition expenses" shall mean the
5 amount of qualified college tuition expenses of eligible students paid
6 by the taxpayer during the taxable year[,]. The amount of qualified
7 college tuition expenses shall be limited [to] as follows: for taxable
8 years beginning after two thousand and before two thousand twenty-one,
9 ten thousand dollars for each such student; for taxable years beginning
10 in two thousand twenty-one, twelve thousand dollars for each student;
11 for taxable years beginning in two thousand twenty-two, fourteen thou-
12 sand dollars for each student; for taxable years beginning in two thou-
13 sand twenty-three, sixteen thousand dollars for each student; for taxa-
14 ble years beginning in two thousand twenty-four, eighteen thousand
15 dollars for each student; and for taxable years beginning after two
16 thousand twenty-four, twenty thousand dollars per student;
17 § 2. Paragraph 4 of subsection (t) of section 606 of the tax law, as
18 added by section 1 of part DD of chapter 63 of the laws of 2000, is
19 amended to read as follows:
20 (4) Amount of credit. [If allowable college tuition expenses are less
21 than five thousand dollars, the amount of the credit provided under this
22 subsection shall be equal to the applicable percentage of the lesser of
23 allowable college tuition expenses or two hundred dollars. If allowable
24 college tuition expenses are five thousand dollars or more, the amount
25 of the credit provided under this subsection shall be equal to the
26 applicable percentage of the allowable college tuition expenses multi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14920-01-0
S. 7657 2
1 plied by four percent.] The amount of the credit shall be determined in
2 accordance with the following schedules:
3 (A) For taxable years beginning after two thousand and before two
4 thousand twenty-one:
5 If allowable college tuitionThe tax credit is equal to:
6 expenses are:
7 Less than five thousand dollarsthe applicable percentage of the
8 lesser of allowable college tuition
9 expenses or two hundred dollars
10 Five thousand dollars or morethe applicable percentage of
11 allowable college tuition expenses
12 multiplied by four percent
13 (B) For taxable years beginning in two thousand twenty-one:
14 If allowable college tuitionThe tax credit is equal to:
15 expenses are:
16 Less than six thousand dollarsthe lesser of allowable college
17 tuition expenses or two hundred
18 forty dollars
19 Six thousand dollars or morethe allowable college tuition
20 expenses multiplied by four percent
21 (C) For taxable years beginning in two thousand twenty-two:
22 If allowable college tuitionThe tax credit is equal to:
23 expenses are:
24 Less than seven thousand dollarsthe lesser of allowable college
25 tuition expenses or two hundred
26 eighty dollars
27 Seven thousand dollars or more the allowable college tuition
28 expenses multiplied by four percent
29 (D) For taxable years beginning in two thousand twenty-three:
30 If allowable college tuitionThe tax credit is equal to:
31 expenses are:
32 Less than eight thousand dollarsthe lesser of allowable college
33 tuition expenses or three hundred
34 twenty dollars
35 Eight thousand dollars or morethe allowable college tuition
36 expenses multiplied by four percent
37 (E) For taxable years beginning in two thousand twenty-four:
38 If allowable college tuitionThe tax credit is equal to:
39 expenses are:
40 Less than nine thousand dollars the lesser of allowable college
41 tuition expenses or three hundred
42 sixty dollars
43 Nine thousand dollars or more the allowable college tuition
44 expenses multiplied by four percent
45 (F) For taxable years beginning after two thousand twenty-four:
46 If allowable college tuitionThe tax credit is equal to:
47 expenses are:
48 Less than ten thousand dollars the lesser of allowable college
49 tuition expenses or four hundred
50 dollars
51 Ten thousand dollars or more the allowable college tuition
52 expenses multiplied by four percent
53 Such applicable percentage shall be twenty-five percent for taxable
54 years beginning in two thousand one, fifty percent for taxable years
55 beginning in two thousand two, seventy-five percent for taxable years
S. 7657 3
1 beginning in two thousand three and one hundred percent for taxable
2 years beginning after two thousand three.
3 § 3. This act shall take effect immediately and shall apply to taxable
4 years beginning on or after January 1, 2021.