Increases the contribution that a resident taxpayer may make to family tuition accounts for each beneficiary thereof during a taxable year.

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S602-2011 Actions

• Mar 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Mar 8, 2012: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 5, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S602-2011 Memo

BILL NUMBER:S602

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:
Contributions made by an account owner under the New York State
college choice tuition savings program should not be deductible for
federal income tax purposes. However, individual or the head of
household shall not exceed twenty thousand dollars for the account(s)
of each beneficiary.

JUSTIFICATION:
This legislation encourages parents to save tax-free tuition money for
each child planning to attend college. Affording children the
opportunity to attend college without incurring debt upon graduation.

LEGISLATIVE HISTORY:
2010:      S.7306
2007-2008: A.10222

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding
the date on which it shall have become a law.

S602-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     602

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
    printed to be committed to the Committee on Investigations and Govern-
    ment Operations

  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  ASSEM-
  BLY, 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  four-
  teen-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 individ-
  ual 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
  NINETY-FIVE-B  OF THE EDUCATION LAW; provided, further, that such exclu-
  sion shall be available only to the account owner and not to  any  other
  person.
    S  2. This act shall take effect on the first of January next succeed-
  ing 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.
                                                             LBD03297-01-1