What's happening
This bill creates a tax credit of up to $500 per child for college preparation expenses, including exam fees and application costs.
Why it matters
Helps Families Offset Rising Costs of College Applications and Exams. By providing a tax credit for exam fees, prep classes, and application expenses, the bill directly targets some of the most financially burdensome aspects of the college admissions process, potentially making higher education more accessible for families with limited resources.
Encourages Broader Participation in Advanced and Standardized Testing. Covering expenses for AP, IB, SAT, ACT, and related preparation may encourage more students to take these exams, which can open up scholarship opportunities and enhance college competitiveness, especially for students from underrepresented or lower-income backgrounds.
Limits on Claiming the Credit Promote Fairness and Prevent Abuse. Restrictions such as a three-year limit per child and rules preventing double-claiming (by both the student and another taxpayer) are designed to ensure the credit is used as intended, targeting new applicants rather than providing ongoing benefits for the same individual.
Flexibility for Future Expansion. The bill allows the tax commissioner to add other “similar expenses” by regulation, enabling the program to adapt over time as the landscape of college preparation changes or new types of qualifying costs emerge.
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Who cares
New York resident taxpayers with children preparing for college
The bill would offer a tax credit of up to $500 per child annually for qualifying expenses, with claims limited to three tax years per child.
Students claimed as dependents
Qualifying expenses they pay would be treated as paid by the taxpayer claiming them, and they could not claim a separate credit for those expenses.
Test-preparation tutors and course providers
Their services for AP, IB, SAT, ACT and SAT subject tests would qualify as expenses for the credit.
State tax officials
They would administer the credit and could designate additional similar expenses and fees as eligible through regulations.
Headline styles
Tax Credit for College Prep
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 25
8 Co-sponsors
History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
College Prep Tax Credit
In Senate Committee · Investigations And Government Operations · Sponsor Andrew J. Lanza
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1235
2017-2018 Regular Sessions
IN ASSEMBLY
January 11, 2017
Introduced by M. of A. ROZIC, COLTON, CUSICK, GOTTFRIED, HOOPER, MOSLEY, OTIS, STIRPE -- Multi-Sponsored by -- M. of A. ABBATE, ARROYO, COOK, LUPINACCI, RAIA, RIVERA, SKARTADOS -- read once and referred to the Committee on Ways and Means
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 Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "college preparation tax credit act".
§ 2. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) College preparation expense credit. (1) A resident taxpayer shall be allowed a credit against the tax imposed by this article for allowable college preparation expenses. Each taxable year, a credit of up to five hundred dollars per child shall be allowed for qualified college preparation expenses paid or incurred by the taxpayer during such taxable year. No credit shall be allowed for any expenses paid or incurred during the taxable year with respect to any individual for whom an election is not in effect under this subsection for such taxable year. An election may not be made for any taxable year if such an election is in effect with respect to such individual for any three prior taxable years.
(2) Qualified college preparation expenses. For purposes of this subsection, the term "qualified college preparation expenses" means amounts paid or incurred for:
(a) fees required for taking any advanced placement or international baccalaureate exam;
(b) fees required for taking the SAT, the ACT, or any SAT subject test;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00413-01-7
A. 1235 2
(c) expenses related to preparation including tutorial services and preparation classes for any exam described in subparagraph (a) or (b) of this paragraph;
(d) fees and expenses related to applications for admission to pursue a postsecondary course of study at an eligible educational institution; and
(e) such other similar expenses and fees as the commissioner may by regulation prescribe.
(3) Treatment of expenses paid by dependent. If a deduction under this subsection with respect to an individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins:
(a) no credit shall be allowed under paragraph one of this subsection to such individual for such individual's taxable year; and
(b) qualified college preparation expenses paid by such individual during such individual's taxable year shall be treated for purposes of this subsection as paid by such other taxpayer.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.