What's happening
This bill creates a tax credit of up to $500 per child for college preparation expenses, including exam and application fees, for New York residents.
Why it matters
Reduces out-of-pocket costs for families. By offering a tax credit for exam and application fees, as well as prep classes and tutorials, the bill directly lessens the financial burden on families navigating the costly college admissions process.
Aims to level the playing field for college access. Covering expenses like SAT/ACT fees and application costs may particularly help lower- and middle-income families, who might otherwise struggle to afford comprehensive college preparation, thereby promoting broader access to higher education.
Limits on repeated use. The provision that a credit cannot be claimed for an individual for more than three years could encourage timely college preparation and prevent long-term or repeated claims for the same student.
Gives flexibility for future needs. Allowing the tax commissioner to define additional qualifying expenses by regulation means the law can adapt to new or changing costs associated with college readiness without requiring additional legislation.
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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.
College Prep Expense Tax Credit
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
794
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
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 (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
S. 794 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 establishing 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
2018: S.3535 - Referred to Investigations / A.1235 - Referred to Ways & Means 2017: S.3535 - Referred to Investigations / A.1235 - Referred to Ways & Means 2016: S.3312 - Finance / A.170 - Referred to Ways & Means 2015: S.3312 - Referred to Investigations / A.170 - Referred to Ways & Means Reported to
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.