Bill Text: NY S05067 | 2019-2020 | General Assembly | Amended


Bill Title: Creates a tax credit for employers who contribute to a college choice tuition savings account on behalf of an employee.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-05-29 - PRINT NUMBER 5067A [S05067 Detail]

Download: New_York-2019-S05067-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5067--A

                               2019-2020 Regular Sessions

                    IN SENATE

                                      April 5, 2019
                                       ___________

        Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
          printed to be committed to the Committee  on  Budget  and  Revenue  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        AN ACT to amend the tax law, in relation to creating a  tax  credit  for
          employers  who  contribute to a college choice tuition savings account
          on behalf of an employee

          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 54 to read as follows:
     3    54. Employer college choice tuition savings contribution credit.   (a)
     4  Allowance  of  credit.  A  taxpayer  shall  be  allowed  a credit, to be
     5  computed as provided in paragraph (b) of this subdivision,  against  the
     6  tax imposed by this article, if it provides a contribution, on behalf of
     7  an employee, to a family tuition account established under article four-
     8  teen-A of the education law by such employee.
     9    (b)  Amount of credit. The credit allowed pursuant to paragraph (a) of
    10  this subdivision shall be in an amount equal to the taxpayer's  payment,
    11  on  behalf of an employee, to a family tuition account established under
    12  article fourteen-A of the education  law  by  such  employee.  Provided,
    13  however, that no such credit allowed under this subdivision shall exceed
    14  five thousand dollars per employee.
    15    (c)  Application  of credit. The credit allowed under this subdivision
    16  for any taxable year shall not reduce the tax due for such year to  less
    17  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    18  section two hundred ten of this article.  If,  however,  the  amount  of
    19  credits  allowed under this subdivision for any taxable year reduces the
    20  tax to such amount, any amount of credit thus  not  deductible  in  such
    21  taxable year shall be treated as an overpayment of tax to be credited or
    22  refunded  in  accordance  with  the  provisions  of section one thousand

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10997-04-9

        S. 5067--A                          2

     1  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
     2  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
     3  notwithstanding, no interest shall be paid thereon.
     4    (d)  Credit  recapture.  For provisions requiring recapture of credit,
     5  see section forty-four of this chapter.
     6    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
     7  of  the  tax  law  is  amended  by  adding a new clause (xlv) to read as
     8  follows:
     9  (xlv) Employer college               Amount of credit
    10  choice tuition savings               under subdivision
    11  contribution credit under            fifty-four of section
    12  subsection (kkk)                     two hundred ten-B
    13    § 3. Section 606 of the tax law is amended by adding a new  subsection
    14  (kkk) to read as follows:
    15    (kkk)  Employer  college  choice  tuition savings contribution credit.
    16  (1) Allowance of credit.  A taxpayer shall be allowed a  credit,  to  be
    17  computed  as  provided  in paragraph two of this subsection, against the
    18  tax imposed by this article, if  it  provides  for  a  contribution,  on
    19  behalf  of  an  employee,  to a family tuition account established under
    20  article fourteen-A of the education law by such employee.
    21    (2) Amount of credit. The credit allowed pursuant to paragraph one  of
    22  this  subsection  shall be in an amount equal to the taxpayer's contrib-
    23  ution, on behalf of an employee, to a family tuition account established
    24  under  article  fourteen-A  of  the  education  law  by  such  employee.
    25  Provided,  however,  that  no  such credit allowed under this subsection
    26  shall exceed five thousand dollars per employee.
    27    (3) Application of credit. If the amount of the credit  allowed  under
    28  this subsection for any taxable year shall exceed the taxpayer's tax for
    29  such  year,  the  excess shall be treated as an overpayment of tax to be
    30  credited or refunded in accordance with the provisions  of  section  six
    31  hundred  eighty-six of this article, provided, however, that no interest
    32  shall be paid thereon.
    33    (4) Credit recapture. For provisions requiring  recapture  of  credit,
    34  see section forty-four of this chapter.
    35    §  4. Section 1511 of the tax law is amended by adding a new  subdivi-
    36  sion (ee) to read as follows:
    37    (ee) Employer college choice tuition savings contribution credit.  (1)
    38  Allowance  of  credit.  A  taxpayer  shall  be  allowed  a credit, to be
    39  computed as provided in paragraph (2) of this subdivision,  against  the
    40  tax imposed by this article, if it provides a contribution, on behalf of
    41  an employee, to a family tuition account established under article four-
    42  teen-A of the education law by such employee.
    43    (2)  Amount of credit. The credit allowed pursuant to paragraph one of
    44  this subdivision shall be in an amount equal to the taxpayer's  payment,
    45  on  behalf of an employee, to a family tuition account established under
    46  article fourteen-A of the education law by  such  employee.    Provided,
    47  however, that no such credit allowed under this subdivision shall exceed
    48  five thousand dollars per employee.
    49    (3)  Application  of credit. The credit allowed under this subdivision
    50  shall not reduce the tax due for such year to be less than  the  minimum
    51  fixed  by  paragraph  four of subdivision (a) of section fifteen hundred
    52  two or section fifteen hundred  two-a  of  this  article,  whichever  is
    53  applicable.  However,  if  the  amount  of the credit allowed under this
    54  subdivision for any taxable year reduces  the  taxpayer's  tax  to  such
    55  amount,  any  amount of credit thus not deductible will be treated as an
    56  overpayment of tax to be credited or refunded  in  accordance  with  the

        S. 5067--A                          3

     1  provisions of section one thousand eighty-six of this chapter. Provided,
     2  however,  the  provisions of subsection (c) of one thousand eighty-eight
     3  of this chapter notwithstanding, no interest shall be paid thereon.
     4    (4)  Credit  recapture.  For provisions requiring recapture of credit,
     5  see section forty-four of this chapter.
     6    § 5. This act shall take effect immediately and shall apply to taxable
     7  years beginning on and after the first of January  next  succeeding  the
     8  date on which it shall have become a law.
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