What's happening
This bill doubles the annual state tax deduction limit for contributions to New York family tuition (529) savings accounts.
Why it matters
Increases Incentive for Education Savings. By raising the maximum deductible contribution, the bill encourages more families to save for college expenses, potentially reducing their reliance on student loans.
Beneficial for Middle- and Upper-Middle-Income Households. The higher deduction limit most directly benefits those who can afford to maximize contributions, possibly widening the gap between families able to save aggressively and those who cannot.
Potential Impact on State Revenue. Larger deductions reduce taxable income, which could decrease state tax revenues and affect funding available for other programs.
Signals State Support for Higher Education Planning. The amendment reaffirms New York’s commitment to helping residents prepare for the rising costs of higher education, making college savings accounts a more attractive tool.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Individual and head-of-household account owners
The bill would double their annual New York income tax exclusion for qualifying family tuition account contributions from $5,000 to $10,000.
Married account owners filing jointly
The bill would raise their annual exclusion for qualifying contributions from $10,000 to $20,000.
College savers contributing to someone else’s account
The bill would retain the rule limiting the exclusion to account owners, leaving other contributors ineligible.
Headline styles
Raise College Savings Limit
Plain English, a few words. Used as the page title.
Sponsors
History
- Reported and committed to finance
- Referred to budget and revenue
- Reported and committed to finance
- Referred to budget and revenue
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1145
2025-2026 Regular Sessions
IN SENATE
January 8, 2025
Introduced by Sens. GOUNARDES, CANZONERI-FITZPATRICK, WEBER -- 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
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 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.
LBD02226-01-5
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
Purpose or general, idea of bill
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
Section 1 amends paragraph 32 of subsection (c) of Section 612 of the Tax Law to increase the personal income tax (PIT) deduction for 529 College Savings Plan contributions from $5,000 to $10,000 for taxpayers filing as single or head of household. For taxpayers who are married filing jointly, the PIT deduction is increased from $10,000 to $20,000.
Section 2 states the effective date.
Justification
Given increases in the cost of higher education, this legislation would raise the amount parents can save tax-free, helping to remove a barrier for children to attend college.
Prior legislative history
2024: S269 - Committed to Finance
2023: S269 - Committed to Finance
2022: S8143 - Committed to Finance
2021: S1011 - Committed to Finance
2019-20: S.2075 - Referred to Budget and Revenue
2017-18: S.317 - Passed Senate, died in Assembly
2015-2016: S.2235 - Referred to Investigations and Government Operations
2013-2014: S.60 - Referred to Investigations and Government Operations
2011-12: S.602 - Referred to Investigations and Government Operations
2010: S.7306 - Referred to Investigations and Government Operations
Fiscal implications
TBD
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.