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 - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [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. LBD10997-04-9S. 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 theS. 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.