What's happening
This bill raises the annual New York state tax deduction for 529 college savings plan contributions to $10,000 per beneficiary.
Why it matters
Greater Tax Savings for Families with Multiple Children. By making the new $10,000 deduction per beneficiary instead of per taxpayer, families saving for more than one child’s education can claim significantly higher total deductions, amplifying the tax benefit for larger families.
Increased Incentive to Save for College. The higher deduction limit encourages families to contribute more aggressively to 529 college savings accounts, potentially reducing future student loan debt and making higher education more affordable.
Potential Impact on State Revenue. The change could reduce state tax revenue by allowing higher deductions, which may influence budget allocations or state services, especially if many taxpayers take advantage of the increased limits.
Narrow Focus on Account Owners. Only the account owner (not grandparents, aunts/uncles, or others making contributions) can claim this deduction, which may affect how families structure and fund their 529 plans.
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Who cares
Headline styles
Raise Tuition Savings Limit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
- Referred to budget and revenue
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2075
2019-2020 Regular Sessions
IN SENATE
January 22, 2019
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
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.
LBD06067-01-9
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
Amends Paragraph 32 of subsection (c) of section 612 of the tax law to increase limit from $5,000 to $10,000..
Existing law
Current limit is $5,000 per year.
Justification
Given increases in the cost of higher education, this legislation would raise the amount parents to save can save tax-free, helping to remove a barrier for children to attend college.
Legislative history
2017-18: S.317 2015-2016: S.2235 2013-2014: S.60 2011-12: S.602 2010: S.7306 2007-2008: A.10222
Fiscal implications
Minimal.
Local fiscal implications
None
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.