Bill Text: NY S00794 | 2019-2020 | General Assembly | Introduced

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Bill Title: Creates a college preparation expense tax credit for up to three years per child/individual for up to $500 per year for qualified college preparation expenses.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00794 Detail]

Download: New_York-2019-S00794-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           794
                               2019-2020 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        AN ACT to amend the tax law, in relation  to  establishing  the  college
          preparation tax credit act
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. This act shall be known and may be cited  as  the  "college
     2  preparation tax credit act".
     3    §  2. Section 606 of the tax law is amended by adding a new subsection
     4  (jjj) to read as follows:
     5    (jjj) College preparation expense  credit.  (1)  A  resident  taxpayer
     6  shall  be  allowed  a credit against the tax imposed by this article for
     7  allowable college preparation expenses. Each taxable year, a  credit  of
     8  up  to  five  hundred  dollars  per child shall be allowed for qualified
     9  college preparation expenses paid or incurred  by  the  taxpayer  during
    10  such  taxable  year. No credit shall be allowed for any expenses paid or
    11  incurred during the taxable year with respect to any individual for whom
    12  an election is not in effect under  this  subsection  for  such  taxable
    13  year.  An  election  may  not  be  made  for any taxable year if such an
    14  election is in effect with respect to  such  individual  for  any  three
    15  prior taxable years.
    16    (2)  Qualified  college  preparation  expenses.  For  purposes of this
    17  subsection, the term  "qualified  college  preparation  expenses"  means
    18  amounts paid or incurred for:
    19    (a)  fees  required for taking any advanced placement or international
    20  baccalaureate exam;
    21    (b) fees required for taking the SAT, the  ACT,  or  any  SAT  subject
    22  test;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00801-01-9
        S. 794                              2
     1    (c)  expenses  related  to preparation including tutorial services and
     2  preparation classes for any exam described in subparagraph (a) or (b) of
     3  this paragraph;
     4    (d)  fees and expenses related to applications for admission to pursue
     5  a postsecondary course of study at an eligible educational  institution;
     6  and
     7    (e)  such  other  similar expenses and fees as the commissioner may by
     8  regulation prescribe.
     9    (3) Treatment of expenses paid by dependent. If a deduction under this
    10  subsection with respect to an individual is allowed to another  taxpayer
    11  for a taxable year beginning in the calendar year in which such individ-
    12  ual's taxable year begins:
    13    (a)  no credit shall be allowed under paragraph one of this subsection
    14  to such individual for such individual's taxable year; and
    15    (b) qualified college preparation expenses  paid  by  such  individual
    16  during  such  individual's taxable year shall be treated for purposes of
    17  this subsection as paid by such other taxpayer.
    18    § 3. This act shall take effect immediately.