Bill Text: NY A02681 | 2019-2020 | General Assembly | Introduced


Bill Title: Creates a tax credit for businesses that develop a "college to work" program, paying the tuition of individuals in exchange for the individual committing to work for the business after the individual's graduation from an institution of higher learning; provides the tax credit shall be for twenty-five percent of the individual's tuition expenses not to exceed five thousand dollars.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced) 2020-01-08 - referred to ways and means [A02681 Detail]

Download: New_York-2019-A02681-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          2681
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 24, 2019
                                       ___________
        Introduced  by M. of A. CROUCH, HAWLEY -- Multi-Sponsored by -- M. of A.
          BARCLAY, PALMESANO -- read once and referred to the Committee on  Ways
          and Means
        AN  ACT  to  amend the tax law, in relation to establishing a credit for
          developing a college to work program
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  210-B  of the tax law is amended by adding a new
     2  subdivision 53 to read as follows:
     3    53. Credit for college to work program. (a)  Allowance  of  credit.  A
     4  taxpayer  shall  be  allowed  a  credit,  to  be computed as hereinafter
     5  provided, against the tax  imposed  by  this  article,  based  upon  its
     6  payment of tuition to an institution of higher education on behalf of an
     7  individual  in  exchange  for  the  individual  agreeing to work for the
     8  taxpayer for a number of years, as set  forth  in  a  written  agreement
     9  between the taxpayer and the individual.
    10    (b) Tuition. For the purposes of this credit, the term "tuition" shall
    11  mean  the  tuition and fees paid for the enrollment and attendance of an
    12  individual at an institution of higher education, as well as monies paid
    13  for textbooks in connection with attendance at an institution of  higher
    14  education.    Provided, however, any amounts which have been paid for or
    15  reimbursed by any  other  scholarships  or  financial  aid,  or  tuition
    16  required  for  enrollment  or attendance in a course of study leading to
    17  the granting of a post baccalaureate or other graduate degree, shall  be
    18  excluded from the definition of "tuition".
    19    (c)  Institution of higher education. For the purposes of this credit,
    20  the term "institution of higher education" shall mean any institution of
    21  higher education, recognized and approved by the regents, or any succes-
    22  sor organization, of the university of the state of New York or  accred-
    23  ited  by  a  nationally  recognized  accrediting  agency  or association
    24  accepted as such by the regents, or any successor organization,  of  the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03050-01-9

        A. 2681                             2
     1  university  of  the  state of New York, which provides a course of study
     2  leading to the granting  of  a  post-secondary  degree,  certificate  or
     3  diploma.
     4    (d) Qualified individual. For purposes of this credit, the term "qual-
     5  ified  individual"  shall mean any individual who is not a spouse, child
     6  or dependent of the taxpayer or any individual  who  is  not  a  spouse,
     7  child or dependent of any officer or employee of the taxpayer.
     8    (e) Written agreement.  For purposes of this credit, the term "written
     9  agreement"  shall  mean a document signed and dated by both the taxpayer
    10  and the qualified individual which contains provisions including but not
    11  limited to the minimum salary which the taxpayer will pay to the  quali-
    12  fied individual upon completion of the individual's degree; the required
    13  duration  of  employment upon completion of the individual's degree; and
    14  the parties' respective responsibilities in the event that the  taxpayer
    15  ceases  operations or later decides not to offer employment to the indi-
    16  vidual upon completion of his/her degree or in the event that the quali-
    17  fied individual fails to complete the degree or to work for the taxpayer
    18  for the agreed upon term.
    19    (f) Amount of credit. Notwithstanding the provisions of any other law,
    20  a taxpayer which provides for the payment  of  an  individual's  tuition
    21  under the college to work program established by this subdivision, shall
    22  be  allowed  a  credit  against  the tax imposed by this article, to the
    23  extent of twenty-five percent  of  monies  paid  for  each  individual's
    24  tuition,  but such credit shall not exceed five thousand dollars for one
    25  year for each such qualified individual.
    26    (g) Carryover. The credit allowed under this subdivision for any taxa-
    27  ble year shall not reduce the tax due for such year  to  less  than  the
    28  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    29  hundred ten of this article.  Provided, however, if the amount of credit
    30  allowable under this subdivision for any taxable year reduces the tax to
    31  such amount, any amount of credit not deductible in  such  taxable  year
    32  may  be carried over to the following year or years, and may be deducted
    33  from the taxpayer's tax for such year or years.
    34    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    35  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    36  follows:
    37  (xliv) College to work program       Amount of credit under
    38  credit under subsection (s-1)        subdivision fifty-three
    39                                       of section two hundred ten-B
    40    § 3. Section 606 of the tax law is amended by adding a new  subsection
    41  (s-1) to read as follows:
    42    (s-1)  Credit  for college to work program. (1) Allowance of credit. A
    43  taxpayer shall be allowed  a  credit,  to  be  computed  as  hereinafter
    44  provided,  against  the  tax  imposed  by  this article, based upon such
    45  taxpayer's payment of tuition to an institution of higher  education  on
    46  behalf  of an individual in exchange for the individual agreeing to work
    47  for the taxpayer for a number of years, as set forth in a written agree-
    48  ment between the taxpayer and the individual.
    49    (2) Tuition. For the purposes of this credit, the term "tuition" shall
    50  mean the tuition and fees paid for the enrollment and attendance  of  an
    51  individual at an institution of higher education, as well as monies paid
    52  for  textbooks in connection with attendance at an institution of higher
    53  education. Provided, however, any amounts which have been  paid  for  or
    54  reimbursed  by  any  other  scholarships  or  financial  aid, or tuition

        A. 2681                             3
     1  required for enrollment or attendance in a course of  study  leading  to
     2  the  granting of a post baccalaureate or other graduate degree, shall be
     3  excluded from the definition of "tuition".
     4    (3)  Institution of higher education. For the purposes of this credit,
     5  the term "institution of higher education" shall mean any institution of
     6  higher education, recognized and approved by the regents, or any succes-
     7  sor organization, of the university of the state of New York or  accred-
     8  ited  by  a  nationally  recognized  accrediting  agency  or association
     9  accepted as such by the regents, or any successor organization,  of  the
    10  university  of  the  state of New York, which provides a course of study
    11  leading to the granting  of  a  post-secondary  degree,  certificate  or
    12  diploma.
    13    (4) Qualified individual. For purposes of this credit, the term "qual-
    14  ified  individual"  shall mean any individual who is not a spouse, child
    15  or dependent of the taxpayer or any individual  who  is  not  a  spouse,
    16  child or dependent of any officer or employee of the taxpayer.
    17    (5)  Written agreement. For purposes of this credit, the term "written
    18  agreement" shall mean a document signed and dated by both  the  taxpayer
    19  and the qualified individual which contains provisions including but not
    20  limited  to the minimum salary which the taxpayer will pay to the quali-
    21  fied individual upon completion of the individual's degree; the required
    22  duration of employment upon completion of the individual's  degree;  and
    23  the  parties' respective responsibilities in the event that the taxpayer
    24  ceases operations or later decides not to offer employment to the  indi-
    25  vidual upon completion of his/her degree or in the event that the quali-
    26  fied individual fails to complete the degree or to work for the taxpayer
    27  for the agreed upon term.
    28    (6) Amount of credit. Notwithstanding the provisions of any other law,
    29  a taxpayer who provides for the payment of an individual's tuition under
    30  the  college  to  work  program established by this subsection, shall be
    31  allowed a credit against the tax imposed by this article, to the  extent
    32  of twenty-five percent of monies paid for each individual's tuition, but
    33  such credit shall not exceed five thousand dollars for one year for each
    34  such qualified individual.
    35    (7) Carryover. If the amount of credit allowable under this subsection
    36  for  any taxable year shall exceed the taxpayer's tax amount, any amount
    37  of the excess may be carried over to the following year  or  years,  and
    38  may be deducted from the taxpayer's tax for such year or years.
    39    §  4.  This  act  shall take effect immediately and shall apply to all
    40  taxable years commencing after January 1, 2018.
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