What's happening
This bill doubles the state tax deduction limit for contributions to New York family tuition (529) accounts.
Why it matters
Increases tax savings for families. By doubling the annual deduction limit for contributions to 529 college savings accounts, families can now shield more of their income from state taxes when saving for education, potentially making college savings more attractive and financially manageable.
Encourages higher education planning. Raising the deduction cap may incentivize more families to start or increase contributions to 529 plans, promoting earlier and more robust planning for future education expenses.
Benefits higher-income savers most. Those with greater disposable income, who can afford to contribute more, will see the largest tax benefit—potentially increasing wealth disparities in college savings unless paired with additional supports for lower-income families.
Immediate impact. The law takes effect immediately for the current and future tax years, so eligible taxpayers can take advantage of the increased deduction starting right away, impacting financial decisions this year.
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Who cares
Headline styles
Raise Tax-Free Tuition Limits
Plain English, a few words. Used as the page title.
Sponsors
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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.
Raise Tax-Free College Savings
In Senate Committee · Budget And Revenue · Sponsor David Carlucci
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5682
2019-2020 Regular Sessions
IN ASSEMBLY
February 14, 2019
Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to contributions to family tuition accounts
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 shall not exceed [five] ten thousand dollars for an individual or head of household, and for married couples who file joint tax returns, shall not exceed [ten] twenty thousand dollars; 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 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.
LBD06244-01-9
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.