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- Print number 4094a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to investigations and government operations
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Sponsor's memo
BILL NUMBER:S4094A
Title of bill
An act to amend the tax law, in relation to including the tuition of graduate students within the college tuition credit
Purpose or general idea of bill
Tax tuition credit for graduate students.
Summary of specific provisions
Subparagraph (c) of paragraph two of subsection (t) of section 606 of the tax law is amended to provide a tax credit for students enrolled in a graduate program.
Justification
Current law provides for a college tuition tax credit to students enrolled or attending an institution of higher education, whether full or part-time. An institution of higher education is defined in the statute as any institution of higher education or business, trade, technical, or other occupational school recognized and approved by an accrediting agency. Tuition payments required for enrollment or attendance in course of study leading to a post-baccalaureate or other graduate degree are specifically exempted from the tax credit.
The maximum amount of qualified tuition expenses allowed for each eligible student is $10,000. If the total qualified tuition expenses are more than $5,000, the credit for 2004 is four-percent of the qualified tuition expenses up to $10,000 per student. Therefore, the maximum tuition credit allowed for 2004 would be $400 per student. If the total qualified tuition expenses are less than $5,000, the credit is equal to the lesser of the total qualified college tuition expenses or $200. The student is therefore not credited back the entire amount of tuition but at most only $400 per student.
Logically, the college tuition tax credit should be extended to cover qualified graduate tuition expenses as well. Total graduate enrollment has generally increased in the past three decades. College costs continue to rise, outpacing the rate of inflation. The percentage of undergraduates who have borrowed and the average total amount borrowed has consistently increased. Individuals often incur enormous debt to earn a college education with no guarantee of job placement. During slow economic times, businesses are not hiring and college graduates unable to find jobs are choosing to attend graduate school, thus, taking on additional debt burdens.
The graduate college tax credit will help those who need the tax credit most. New York State graduate students, who often have greater debt burdens then undergraduate students, will be able to obtain a graduate degree without mortgaging their future. Those with graduate degrees potentially will earn more money and collectively better this state and country. Therefore, the college tuition tax credit should be expanded to graduate college tuition.
Prior legislative history
S.2435 of 2007/08 S.4094 of 2011/12
Fiscal implications
To be determined.
Effective date
Immediately and shall apply to taxable years beginning on or after January 1, 2013.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.