What's happening
This bill creates a tax credit of up to $500 per child for New York residents' college preparation expenses, including exam fees and application costs.
Why it matters
Reduces financial barriers for low- and middle-income families. by offsetting the costs of standardized test fees (like AP, IB, SAT, and ACT), application expenses, and test preparation services, potentially making college more accessible.
Encourages wider participation in college preparatory activities. by making it more affordable for families to invest in tutoring and test prep, which can improve students’ competitiveness for college admission and scholarships.
Limits the credit to three years per child. , ensuring that the benefit is targeted toward students actively preparing for college, and preventing indefinite claims for the same individual.
Provides flexibility for future expansion. by allowing the tax commissioner to include similar expenses under the credit through regulations, meaning the scope of covered expenses could grow without new legislation.
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Who cares
Headline styles
College Prep Expense Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 25
7 Co-sponsors
5 Multi-sponsors
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.
College Prep Tax Credit
In Senate Committee · Investigations And Government Operations · Sponsor Andrew J. Lanza
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2062
2019-2020 Regular Sessions
IN ASSEMBLY
January 22, 2019
Introduced by M. of A. ROZIC, COLTON, CUSICK, GOTTFRIED, MOSLEY, OTIS, STIRPE, BLAKE -- Multi-Sponsored by -- M. of A. ABBATE, ARROYO, COOK, RAIA, RIVERA -- read once and referred to the Committee on Ways and Means
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 (jjj) to read as follows:
(jjj) 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.
LBD00801-01-9
A. 2062 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.