What's happening
This bill doubles the maximum allowable college tuition expenses for the New York State personal income tax credit from $10,000 to $20,000 per student.
Why it matters
Direct financial relief for families and students. By increasing the maximum eligible tuition expenses for the state income tax credit, more of a family's or student's tuition costs can now count toward a tax reduction, potentially lowering the overall out-of-pocket cost for higher education.
Helps keep pace with rising tuition. College tuition rates have outpaced the previous $10,000 cap; doubling it to $20,000 makes the credit more relevant and useful, especially for those attending private institutions or out-of-state schools with higher tuition.
Potential to improve college access. Enhanced tax credits can make college seem more affordable for middle-income families who may not qualify for need-based aid but still struggle with tuition costs, potentially encouraging higher college enrollment and completion rates.
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Who cares
Headline styles
Increase College Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
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.
Increase College Tax Credit
In Assembly Committee · Ways And Means · Sponsor Steven Englebright
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
712
2017-2018 Regular Sessions
IN SENATE
January 4, 2017
Introduced by Sens. CARLUCCI, AVELLA, KLEIN, SAVINO, VALESKY -- 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 college tuition personal income tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (A) of paragraph 2 of subsection (t) of section 606 of the tax law, as amended by section 1 of part N of chapter 85 of the laws of 2002, is amended to read as follows:
(A) The term "allowable college tuition expenses" shall mean the amount of qualified college tuition expenses of eligible students paid by the taxpayer during the taxable year, limited to [ten] twenty thousand dollars for each such student;
§ 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.
LBD01794-01-7
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 college tuition personal income tax credit
Purpose
To increase the amount of tuition expenses that can be claimed for the tuition tax credit.
Summary of provisions
Section 1. Amends subparagraph (A) of paragraph 2 of subsection (t) of section 606 of the tax law to double the amount that can be claimed as an allowable college tuition expense from ten thousand dollars to twenty thousand dollars.
Section 2. Effective date.
Justification
New York State currently helps lessen the burden on families coping with paying for college by offering the option of a credit or deduction for college tuition expenses they incur during a tax year. A participating New York taxpayer can claim this credit or deduction on tuition expenses they paid for themselves, a spouse or a dependent. The credit or deduction can be claimed on expenses paid to any accredited college or university, whether it be in New York or outside of New York, and regardless of whether it is public or private. Families in New York get a choice of applying for a credit, which is money they get back after their tax liability is calculated, or claiming a deduction, which lowers their taxable income, depending on which solution they find most helpful.
The amount of tuition expenses that can be claimed for this credit has not been changed since 2001, when this credit was created. According to a report by the College Board, the average cost of tuition at a private nonprofit four-year institution was $29,056 for the 2012-13 academic year, a 26% increase from the 2002-03 academic year. In the same time the average tuition for public four-year institutions has climbed by 40% according to this same study. The current credit amount needs to increase to keep up with this massive inflation in college costs.
Legislative history
2015-16: S1222/A6574 - Investigations & Government Operations/Ways & Means 2014: S6697-A/A9664 - Investigations & Government Operations/Ways & Means
Fiscal implications
This legislation would double the amount individuals can claim as eligible tuition expenses for the tuition tax credit. Currently, this tax expenditure is estimated to cost the state $250 million. The most conservative estimate is that this legislation would double this cost, and thus would cost the state an additional $250 million in lost tax revenue annually.
Effective date
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.