What's happening
This bill increases the annual tax-deductible contribution limit to New York family tuition (529) accounts to $10,000 per beneficiary for individuals and $20,000 for joint filers.
Why it matters
Greater tax-advantaged savings per child. By raising the annual deduction cap per beneficiary, families with multiple children can now set aside significantly more for each child’s education, amplifying the potential state tax benefit for larger families.
Enhanced incentive for college savings. The higher contribution limits could encourage more aggressive and earlier saving for college, possibly reducing reliance on student loans and mitigating future student debt burdens.
Potential for increased participation. The expanded limits may attract higher-income families or those able to save more, increasing overall participation in New York’s 529 plan and potentially boosting assets managed by the program.
State revenue impact. This measure could reduce New York State income tax collections, as more income will be shielded from taxation due to larger deductible contributions, which may have budgetary implications over time.
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Who cares
Headline styles
Increase Tuition Savings Limit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1837
- Committee discharged and committed to rules
- Referred to investigations and government operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
317
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
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 on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00120-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
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
Purpose
Increases to $10,000 the contribution that a resident taxpayer may make to family tuition accounts for each child during a taxable year.
Summary of provisions
Contributions made by an account owner under the New York State college choice tuition savings program should not be deductible for federal income tax purposes. However, individual or the head of household shall not exceed twenty thousand dollars for the account(s) of each beneficiary.
Justification
This legislation encourages parents to save tax-free tuition money for each child planning to attend college. Affording children the opportunity to attend college without incurring debt upon graduation.
Legislative history
2015-2016--S2235 2013-2014 - S.60 2011-12: S.602 2010: S.7306 2007-2008: A.10222
Fiscal implications
To be determined.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.