What's happening
This bill raises the annual tax-deductible contribution limit for New York family tuition accounts to $10,000 per beneficiary.
Why it matters
Encourages greater college savings. By allowing higher annual tax-deductible contributions per beneficiary, families are incentivized to save more for each child’s education, potentially reducing future student debt burdens.
Benefits larger families and multi-child households. Since the limit is per beneficiary (not per household), families with more children can realize significantly higher total state tax deductions if they contribute for each child.
May disproportionately benefit higher-income families. Those with more disposable income are more likely to take full advantage of the increased contribution limits, potentially widening the gap in college savings between higher- and lower-income households.
Aligns state incentives with rising education costs. The increased limits reflect the growing expense of college tuition, aiming to make tax-advantaged education savings plans more relevant and impactful for New York families.
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Who cares
Headline styles
Raise College Savings Limit
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7450
2017-2018 Regular Sessions
IN ASSEMBLY
April 26, 2017
Introduced by M. of A. TITONE, CAHILL, BRINDISI -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the authorized resident taxpayer contribution to family tuition accounts to $10,000 per taxable year for each beneficiary thereof
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; for an individual or head of household, shall not exceed [five] ten thousand dollars [for an individual or head of household] for the account or accounts of each designated beneficiary, as defined in section six hundred ninety-five-b of the education law, and for married couples who file joint tax returns, shall not exceed [ten] twenty thousand dollars for the account or accounts of each designated beneficiary, as defined in section six hundred ninetyfive-b of the education law; 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 January 1, 2018.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11039-01-7
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.