What's happening
This bill doubles the state tax deduction limits for contributions to New York family tuition (529) accounts.
Why it matters
Increases Incentive to Save for College. By doubling the deduction limits for 529 plan contributions, the bill makes it more financially appealing for New Yorkers to save for future education expenses, potentially reducing reliance on student loans.
Benefits Middle- and Upper-Income Families Most. Since tax deductions are most valuable to those with higher taxable incomes, the increased limits will disproportionately benefit families who have the means to save more aggressively.
Could Encourage Greater Participation in 529 Plans. The higher deduction cap might motivate more families to open and contribute to 529 accounts, increasing overall participation in these state-sponsored education savings programs.
Potential Impact on State Revenue. By allowing larger deductions, the state may collect less tax revenue from individuals who maximize their 529 plan contributions, which could have budgetary implications, especially if participation grows significantly.
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Who cares
Headline styles
Raise Tuition Account Tax Limits
Plain English, a few words. Used as the page title.
Sponsors
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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.
Raise Tax-Free Tuition Savings
In Senate Committee · Investigations And Government Operations · Sponsor David Carlucci
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6272
2017-2018 Regular Sessions
IN ASSEMBLY
March 1, 2017
Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to contributions to family tuition accounts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 32 of subsection (c) of section 612 of the tax law, as amended by chapter 81 of the laws of 2008, is amended to read as follows:
(32) Contributions made during the taxable year by an account owner to one or more family tuition accounts established under the New York state college choice tuition savings program provided for under article fourteen-A of the education law, to the extent not deductible or eligible for credit for federal income tax purposes, provided, however, the exclusion provided for in this paragraph shall not exceed [five] ten thousand dollars for an individual or head of household, and for married couples who file joint tax returns, shall not exceed [ten] twenty thousand dollars; provided, further, that such exclusion shall be available only to the account owner and not to any other person.
§ 2. This act shall take effect immediately, and shall apply to the taxable year in which it takes effect and taxable years commencing on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01792-01-7
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.