Amends the definition of allowable college tuition expenses and establishes a new schedule of tax credits for allowable college tuition expenses

8 Co-sponsors

• John A. DeFrancisco
• John J. Flanagan
• Rich Funke
• Joseph A. Griffo
• Kathleen A. Marchione
• Terrence P. Murphy
• Michael H. Ranzenhofer
• James L. Seward

Title of bill

An act to amend the tax law, in relation to the definition of "allowable college tuition expenses" and the tax credit allowed for such expenses

Purpose

This bill amends the definition of "allowable college tuition expenses" to increase the amount of tuition paid in a given taxable year for which the taxpayer may be eligible to claim a tax deduction or a tax credit, from the current $10,000 to $20,000 over the next five years.

Summary of provisions

Section 1. Subparagraph (A) of paragraph 2 of subsection (t) of section 606 of the tax law, as amended by section 1 of part N of chapter 85 of the laws of 2002 is amended to change the definition of "allowable college tuition expenses".

Section 2. Paragraph 4 of subsection (t) of section 606 of the tax law, as added by section 1 of part DD of chapter 63 of the laws of 2000 is amended to change the amount of the credit pursuant to an amended schedule.

Section 3. Sets forth the effective date.

Justification

Under existing law, a taxpayer is authorized to claim either a tax credit or itemized deduction for the amount of tuition paid by such taxpayer in a given taxable year, whichever yields the greatest tax benefit. The maximum allowable tuition expenses that can be claimed is currently $10,000. This bill would increase the allowable amount of tuition expenses paid that could be claimed for the credit or itemized deduction from $10,000 to $20,000 gradually over the next 5 years.

With the cost of college tuition on the rise, and more students and families struggling to afford a college degree, this bill will help ease the burden by increasing the tax credit/deduction for college tuition paid in a given year.

Legislative history

2013-14 S.2223; 2011-12 S.5884.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018.