What's happening
This bill creates a tax credit of up to $500 per child for New York residents' college preparation expenses, such as exam fees and application costs.
Why it matters
Helps make college application costs more affordable. By offering a tax credit for expenses like exam fees, prep classes, and application costs, this bill aims to ease the financial burden on families preparing their children for college, potentially widening access for lower- and middle-income households.
Encourages early and thorough college preparation. The credit covers not just application fees, but also costs for standardized tests (SAT, ACT, AP, IB) and related preparation services, incentivizing families to invest in resources that can improve a student's readiness and competitiveness for college admission.
Limits prevent repeat claims for the same student. The bill restricts the tax credit to a maximum of three years per child, ensuring the benefit is available during the critical college preparation period without enabling indefinite or repeated claims.
Provides flexibility for additional qualifying expenses. The language allows the tax commissioner to add other similar college prep expenses in the future, which means the credit could adapt to changing educational needs or new types of prep costs, keeping the program relevant.
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Who cares
Headline styles
College Prep Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
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.
Tax Credit for College Prep
In Assembly Committee · Ways And Means · Sponsor Nily Rozic
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3535
2017-2018 Regular Sessions
IN SENATE
January 24, 2017
Introduced by Sen. LANZA -- 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 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
S. 3535 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.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establish- ing the college preparation tax credit act
Purpose
To help families meet the costs of college preparation by allowing them to qualify for a tax credit of up to five hundred dollars per child.
Summary of provisions
Section I titles the bill.
Section II. amends section 606 of the tax law by adding a new subsection (ccc) which allows a resident taxpayer a credit of up to five hundred dollars per child for qualified college preparation expenses paid or incurred by the taxpayer during a taxable year.
Section III sets forth the effective date.
Justification
College affordability is an issue that working and middle class families continue to struggle with as the expenses for college preparation continue to skyrocket. The costs incurred during the application process often become a financial burden for families who cannot afford to pay for admission tests such as the SAT and the ACT and the preparation courses offered for such tests.
This bill would provide these families with the option to qualify for a tax credit of up to five hundred dollars per child for college prepara- tion expenses paid or incurred during a taxable year. The term "quali- fied" would apply to the fees required to take the SAT, the ACT, SAT subject tests, Advanced Placement (AP) tests, preparation classes, and admission applications. With tuition costs rising, it is important to provide these families with some form of financial relief as they work to ensure the academic success of their children.
Legislative history
2017:S.3535- Referred to Investigations/ A.12356 - Referred to Ways & Means 2016:S.3312- Reported to Finance / A.170- Referred to Ways & Means 2015:S.3312- Referred to Investigations/ A.170 - Referred to Ways & Means
Fiscal impact on the state
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.