Bill S1436-2011

Establishes a credit against personal income taxes for certain tuition expenses and modifies income; repealer

Establishes a credit against personal income taxes for certain tuition expenses for taxpayers who qualify for an earned income tax credit, in the amount of 10% of the EIC, up to $500 per eligible dependent child; provides for a modification of gross taxable income for elementary and secondary school tuition for personal income tax purposes.

Details

Actions

  • Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jun 2, 2011: REPORTED AND COMMITTED TO FINANCE
  • Jan 7, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Jun 2, 2011
Ayes (6): Marcellino, Alesi, Golden, Nozzolio, Zeldin, Diaz
Ayes W/R (2): Squadron, Peralta

Memo

BILL NUMBER:S1436

TITLE OF BILL: An act to amend the tax law, in relation to a credit against personal income taxes for certain tuition expenses; to amend the tax law and the administrative code of the city of New York, in relation to providing for a modification of elementary and secondary school tuition for personal income tax purposes; and repealing certain provisions of such laws relating thereto

SUMMARY OF PROVISIONS: Section 1 amends §606 of the Tax Law by adding a new subsection (ss) to establish a tuition tax credit in the amount of 10% of the earned income credit a taxpayer is allowed under IRC § 32 multiplied by the number of dependents attending an elementary or secondary public or nonpublic school on a full-time basis for at least three months during the regular school year. This credit shall not exceed the amour.t paid in tuition for each dependent and in no event 8h211 exceed $500.

Section 2 repeals §612 (j) of the Tax Law and adds new subsection j, which establishes the Tuition tax deduction. Such deduction shall not exceed the amount paid for each dependent in tuition to an elementary or secondary public or non-public school for the education of such dependent.

JUSTIFICATION: In 2006, an effort to establish a tax credit to help families with children was established. This credit was an important step towards helping New York's families with child expenses, but was not linked specifically to educational expenses. Family expenditures for education can be significant and this measure aims to assist with these expenses.

PRIOR LEGISLATIVE HISTORY: S.1594, 2010 - Referred to Investigations and Government Operations S.3691-A, 2007-08 - Referred to Tax and Finance

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately, applying to the 2010 tax year and thereafter.


Text

STATE OF NEW YORK ________________________________________________________________________ 1436 2011-2012 Regular Sessions IN SENATE January 7, 2011 ___________
Introduced by Sens. GOLDEN, DeFRANCISCO, JOHNSON, MAZIARZ -- 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 a credit against personal income taxes for certain tuition expenses; to amend the tax law and the administrative code of the city of New York, in relation to providing for a modification of elementary and secondary school tuition for personal income tax purposes; and repealing certain provisions of such laws relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 606 of the tax law is amended by adding a new subsection (ss) to read as follows: (SS) TUITION TAX CREDIT. (1) GENERAL. A RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN THE AMOUNT OF TEN PERCENT OF THE EARNED INCOME CREDIT SUCH TAXPAYER IS ALLOWED UNDER SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME TAXA- BLE YEAR, MULTIPLIED BY THE NUMBER OF DEPENDENTS ATTENDING AN ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL ON A FULL-TIME BASIS FOR AT LEAST THREE MONTHS DURING THE REGULAR SCHOOL YEAR, FOR THE EDUCATION OF SUCH DEPENDENT IN GRADES KINDERGARTEN THROUGH TWELVE, PROVIDED THAT SUCH CREDIT SHALL NOT EXCEED FIVE HUNDRED DOLLARS PER DEPENDENT CHILD AND PROVIDED FURTHER THAT SUCH TAXPAYER IS ALLOWED AN EXEMPTION UNDER SECTION SIX HUNDRED SIXTEEN OF THIS ARTICLE FOR SUCH DEPENDENT. THE CREDIT UNDER THIS SUBSECTION SHALL NOT EXCEED THE AMOUNT PAID FOR EACH SUCH DEPENDENT IN TUITION TO SUCH ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL FOR SUCH EDUCATION OF SUCH DEPENDENT. (2) DEFINITIONS. (A) "TUITION", AS USED IN THIS SUBSECTION, SHALL MEAN THE AMOUNT ACTUALLY PAID DURING THE TAXABLE YEAR BY THE TAXPAYER FOR THE ENROLLMENT OF A DEPENDENT DURING THE REGULAR SCHOOL YEAR AT AN ELEMENTA- RY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL.
(B) "NONPUBLIC SCHOOL", AS USED IN THIS SUBSECTION, SHALL MEAN ANY NON-PROFIT ELEMENTARY OR SECONDARY SCHOOL IN THE STATE OF NEW YORK, OTHER THAN A PUBLIC SCHOOL, WHICH (I) IS PROVIDING INSTRUCTION IN ACCORDANCE WITH ARTICLE SEVENTEEN AND SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW, (II) HAS NOT BEEN FOUND TO BE IN VIOLATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF NINETEEN HUNDRED SIXTY-FOUR, 78 STAT. 252, 42 U.S.C. SEC. 2000 (D) AND (III) WHICH IS ENTITLED TO A TAX EXEMPTION UNDER SECTIONS FIVE HUNDRED ONE (A) AND FIVE HUNDRED ONE (C)(3) OF THE INTERNAL REVENUE CODE. THE COMMISSIONER OF EDUCATION SHALL FURNISH TO THE COMMISSIONER BY JANUARY FIRST OF EACH YEAR, A CERTIFIED LIST OF NONPUBLIC SCHOOLS WHICH COMPLY WITH CLAUSE (I) OF THIS SUBPARAGRAPH FOR THE PRECEDING CALENDAR YEAR AND SHALL PROVIDE SUCH OTHER ASSISTANCE WITH RESPECT TO WHETHER NONPUBLIC SCHOOLS COME WITHIN SUCH CLAUSE (I) AS THE COMMISSIONER MAY REQUIRE. (C) "PUBLIC SCHOOL", AS USED IN THIS SUBSECTION, SHALL MEAN ANY ELEMENTARY OR SECONDARY SCHOOL IN THE STATE OF NEW YORK THAT IS SUBJECT TO THE SUPERVISION OF THE COMMISSIONER OF EDUCATION PURSUANT TO SECTION THREE HUNDRED NINE OF THE EDUCATION LAW. PUBLIC SCHOOL SHALL INCLUDE ANY CHARTER SCHOOL ORGANIZED PURSUANT TO ARTICLE FIFTY-SIX OF THE EDUCATION LAW. (D) "REGULAR SCHOOL YEAR", AS USED IN THIS SUBSECTION, SHALL MEAN THE MONTHS OF THE TAXABLE YEAR EXCLUSIVE OF JULY AND AUGUST. S 2. Subsection (j) of section 612 of the tax law is REPEALED and a new subsection (j) is added to read as follows: (J) TUITION TAX DEDUCTION. (1) GENERAL. AN INDIVIDUAL SHALL BE ENTI- TLED TO SUBTRACT FROM HIS OR HER FEDERAL ADJUSTED GROSS INCOME AN AMOUNT NOT EXCEEDING THE AMOUNT SHOWN IN THE TABLE SET FORTH IN THIS PARAGRAPH, MULTIPLIED BY THE NUMBER OF DEPENDENTS ATTENDING AN ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL ON A FULL-TIME BASIS FOR AT LEAST THREE MONTHS DURING THE REGULAR SCHOOL YEAR FOR THE EDUCATION OF SUCH DEPENDENT IN GRADES KINDERGARTEN THROUGH TWELVE, PROVIDED SUCH INDIVID- UAL IS ALLOWED AN EXEMPTION UNDER SECTION SIX HUNDRED SIXTEEN OF THIS PART FOR SUCH DEPENDENT. PROVIDED, FURTHER, THAT THE DEDUCTION UNDER THIS PARAGRAPH SHALL NOT EXCEED THE AMOUNT PAID FOR EACH SUCH DEPENDENT IN TUITION TO SUCH ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL FOR SUCH EDUCATION OF SUCH DEPENDENT. (A) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2010, IF THE FEDERAL THE AMOUNT ADJUSTED GROSS ALLOWABLE FOR EACH INCOME IS: DEPENDENT IS: LESS THAN $115,000 $2,500 115,000--119,999 2,150 120,000--124,999 1,800 125,000--129,999 1,450 130,000--134,999 1,100 135,000--139,999 750 140,000--144,999 400 145,000--149,999 50 150,000 AND OVER 0 (B) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2011, IF THE FEDERAL THE AMOUNT ADJUSTED GROSS ALLOWABLE FOR EACH INCOME IS: DEPENDENT IS: LESS THAN $115,000 $5,000
115,000--119,999 4,300 120,000--124,999 3,600 125,000--129,999 2,900 130,000--134,999 2,200 135,000--139,999 1,500 140,000--144,999 800 145,000--149,999 100 150,000 AND OVER 0 (C) FOR THE TAXABLE YEARS BEGINNING JANUARY 1, 2012, IF THE FEDERAL THE AMOUNT ADJUSTED GROSS ALLOWABLE FOR EACH INCOME IS: DEPENDENT IS: LESS THAN $115,000 $7,500 115,000--119,999 6,450 120,000--124,999 5,400 125,000--129,999 4,350 130,000--134,999 3,300 135,000--139,999 2,250 140,000--144,999 1,200 145,000--149,999 150 150,000 AND OVER 0 (D) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2013 AND THEREAFTER, IF THE FEDERAL THE AMOUNT ADJUSTED GROSS ALLOWABLE FOR EACH INCOME IS: DEPENDENT IS: LESS THAN $115,000 $10,000 115,000--119,999 8,750 120,000--124,999 7,500 125,000--129,999 6,250 130,000--134,999 5,000 135,000--139,999 3,750 140,000--144,999 2,500 145,000--149,999 1,250 150,000 AND OVER 0 (2) HUSBAND AND WIFE. IN DETERMINING THE APPLICABLE FEDERAL ADJUSTED GROSS INCOME OF A HUSBAND AND WIFE WHO FILE JOINTLY ON THEIR FEDERAL TAX RETURN, WHETHER OR NOT THEY FILE SEPARATE NEW YORK STATE RETURNS, FOR PURPOSES OF THE TABLE SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION, THE FEDERAL ADJUSTED GROSS INCOME OF A HUSBAND AND WIFE SHALL BE THE AGGREGATE OF THEIR FEDERAL ADJUSTED GROSS INCOMES FOR THE TAXABLE YEAR. THE HUSBAND OR WIFE TAXPAYER WHO CLAIMS AN EXEMPTION FOR THE DEPENDENT ON HIS OR HER NEW YORK STATE INCOME TAX RETURN SHALL BE ALLOWED TO TAKE THE DEDUCTION PRESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION. (3) DEFINITIONS. (A) "TUITION", AS USED IN THIS SUBSECTION, SHALL MEAN THE AMOUNT ACTUALLY PAID DURING THE TAXABLE YEAR BY THE TAXPAYER FOR THE ENROLLMENT OF A DEPENDENT DURING THE REGULAR SCHOOL YEAR AT AN ELEMENTA- RY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL. (B) "NONPUBLIC SCHOOL", AS USED IN THIS SUBSECTION, SHALL MEAN ANY NON-PROFIT ELEMENTARY OR SECONDARY SCHOOL IN THE STATE OF NEW YORK, OTHER THAN A PUBLIC SCHOOL, WHICH (I) IS PROVIDING INSTRUCTION IN ACCORDANCE WITH ARTICLE SEVENTEEN AND SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW, (II) HAS NOT BEEN FOUND TO BE IN VIOLATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF NINETEEN HUNDRED SIXTY-FOUR, 78 STAT.
252, 42 U.S.C. SEC. 2000 (D) AND (III) WHICH IS ENTITLED TO A TAX EXEMPTION UNDER SECTIONS FIVE HUNDRED ONE (A) AND FIVE HUNDRED ONE (C) (3) OF THE INTERNAL REVENUE CODE. THE COMMISSIONER OF EDUCATION SHALL FURNISH TO THE COMMISSIONER BY JANUARY FIRST OF EACH YEAR, A CERTIFIED LIST OF NONPUBLIC SCHOOLS WHICH COMPLY WITH CLAUSE (I) OF THIS SUBPARA- GRAPH FOR THE PRECEDING CALENDAR YEAR AND SHALL PROVIDE SUCH OTHER ASSISTANCE WITH RESPECT TO WHETHER NONPUBLIC SCHOOLS COME WITHIN SUCH CLAUSE (I) AS THE COMMISSIONER MAY REQUIRE. (C) "PUBLIC SCHOOL", AS USED IN THIS SUBSECTION, SHALL MEAN ANY ELEMENTARY OR SECONDARY SCHOOL IN THE STATE OF NEW YORK THAT IS SUBJECT TO THE SUPERVISION OF THE COMMISSIONER OF EDUCATION PURSUANT TO SECTION THREE HUNDRED NINE OF THE EDUCATION LAW. PUBLIC SCHOOL SHALL INCLUDE ANY CHARTER SCHOOL ORGANIZED PURSUANT TO ARTICLE FIFTY-SIX OF THE EDUCATION LAW. (D) "REGULAR SCHOOL YEAR", AS USED IN THIS SUBSECTION, SHALL MEAN THE MONTHS OF THE TAXABLE YEAR EXCLUSIVE OF JULY AND AUGUST. (4) ADDITIONAL INFORMATION. ANY CLAIM FOR A MODIFICATION UNDER THIS SUBSECTION SHALL BE ACCOMPANIED BY SUCH INFORMATION AS THE COMMISSIONER MAY REQUIRE. S 3. Subdivision (j) of section 11-1712 of the administrative code of the city of New York is REPEALED and a new subdivision (j) is added to read as follows: (J) TUITION TAX DEDUCTION. (1) GENERAL. AN INDIVIDUAL SHALL BE ENTI- TLED TO SUBTRACT FROM HIS OR HER FEDERAL ADJUSTED GROSS INCOME AN AMOUNT NOT EXCEEDING THE AMOUNT SHOWN IN THE TABLE SET FORTH IN THIS PARAGRAPH, MULTIPLIED BY THE NUMBER OF DEPENDENTS ATTENDING AN ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL ON A FULL-TIME BASIS FOR AT LEAST THREE MONTHS DURING THE REGULAR SCHOOL YEAR FOR THE EDUCATION OF SUCH DEPENDENT IN GRADES KINDERGARTEN THROUGH TWELVE, PROVIDED SUCH INDIVID- UAL IS ALLOWED AN EXEMPTION UNDER SECTION 11-1716 OF THIS SUBCHAPTER FOR SUCH DEPENDENT. PROVIDED, FURTHER, THAT THE DEDUCTION UNDER THIS PARA- GRAPH SHALL NOT EXCEED THE AMOUNT PAID FOR EACH SUCH DEPENDENT IN TUITION TO SUCH ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL FOR SUCH EDUCATION OF SUCH DEPENDENT. (A) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2010, IF THE FEDERAL THE AMOUNT ADJUSTED GROSS ALLOWABLE FOR EACH INCOME IS: DEPENDENT IS: LESS THAN $115,000 $2,500 115,000--119,999 2,150 120,000--124,999 1,800 125,000--129,999 1,450 130,000--134,999 1,100 135,000--139,999 750 140,000--144,999 400 145,000--149,999 50 150,000 AND OVER 0 (B) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2011, IF THE FEDERAL THE AMOUNT ADJUSTED GROSS ALLOWABLE FOR EACH INCOME IS: DEPENDENT IS: LESS THAN $115,000 $5,000 115,000--119,999 4,300 120,000--124,999 3,600
125,000--129,999 2,900 130,000--134,999 2,200 135,000--139,999 1,500 140,000--144,999 800 145,000--149,999 100 150,000 AND OVER 0 (C) FOR THE TAXABLE YEARS BEGINNING JANUARY 1, 2012, IF THE FEDERAL THE AMOUNT ADJUSTED GROSS ALLOWABLE FOR EACH INCOME IS: DEPENDENT IS: LESS THAN $115,000 $7,500 115,000--119,999 6,450 120,000--124,999 5,400 125,000--129,999 4,350 130,000--134,999 3,300 135,000--139,999 2,250 140,000--144,999 1,200 145,000--149,999 150 150,000 AND OVER 0 (D) FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2013 AND THEREAFTER, IF THE FEDERAL THE AMOUNT ADJUSTED GROSS ALLOWABLE FOR EACH INCOME IS: DEPENDENT IS: LESS THAN $115,000 $10,000 115,000--119,999 8,750 120,000--124,999 7,500 125,000--129,999 6,250 130,000--134,999 5,000 135,000--139,999 3,750 140,000--144,999 2,500 145,000--149,999 1,250 150,000 AND OVER 0 (2) HUSBAND AND WIFE. IN DETERMINING THE APPLICABLE FEDERAL ADJUSTED GROSS INCOME OF A HUSBAND AND WIFE WHO FILE JOINTLY ON THEIR FEDERAL TAX RETURN, WHETHER OR NOT THEY FILE SEPARATE NEW YORK STATE RETURNS, FOR PURPOSES OF THE TABLE SET FORTH IN PARAGRAPH ONE OF THIS SUBDIVISION, THE FEDERAL ADJUSTED GROSS INCOME OF A HUSBAND AND WIFE SHALL BE THE AGGREGATE OF THEIR FEDERAL ADJUSTED GROSS INCOMES FOR THE TAXABLE YEAR. THE HUSBAND OR WIFE TAXPAYER WHO CLAIMS AN EXEMPTION FOR THE DEPENDENT ON HIS OR HER NEW YORK CITY INCOME TAX RETURN SHALL BE ALLOWED TO TAKE THE DEDUCTION PRESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION. (3) DEFINITIONS. (A) "TUITION", AS USED IN THIS SUBDIVISION, SHALL MEAN THE AMOUNT ACTUALLY PAID DURING THE TAXABLE YEAR BY THE TAXPAYER FOR THE ENROLLMENT OF A DEPENDENT DURING THE REGULAR SCHOOL YEAR AT AN ELEMENTARY OR SECONDARY PUBLIC OR NONPUBLIC SCHOOL. (B) "NONPUBLIC SCHOOL", AS USED IN THIS SUBDIVISION, SHALL MEAN ANY NON-PROFIT ELEMENTARY OR SECONDARY SCHOOL IN THE STATE OF NEW YORK, OTHER THAN A PUBLIC SCHOOL, WHICH (I) IS PROVIDING INSTRUCTION IN ACCORDANCE WITH ARTICLE SEVENTEEN AND SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW, (II) HAS NOT BEEN FOUND TO BE IN VIOLATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF NINETEEN HUNDRED SIXTY-FOUR, 78 STAT. 252, 42 U.S.C. SEC. 2000 (D) AND (III) WHICH IS ENTITLED TO A TAX EXEMPTION UNDER SECTIONS FIVE HUNDRED ONE (A) AND FIVE HUNDRED ONE (C) (3) OF THE INTERNAL REVENUE CODE. THE COMMISSIONER OF EDUCATION SHALL
FURNISH TO THE COMMISSIONER BY JANUARY FIRST OF EACH YEAR, A CERTIFIED LIST OF NONPUBLIC SCHOOLS WHICH COMPLY WITH CLAUSE (I) OF THIS SUBPARA- GRAPH FOR THE PRECEDING CALENDAR YEAR AND SHALL PROVIDE SUCH OTHER ASSISTANCE WITH RESPECT TO WHETHER NONPUBLIC SCHOOLS COME WITHIN SUCH CLAUSE (I) AS THE COMMISSIONER MAY REQUIRE. (C) "PUBLIC SCHOOL", AS USED IN THIS SUBDIVISION, SHALL MEAN ANY ELEMENTARY OR SECONDARY SCHOOL IN THE STATE OF NEW YORK THAT IS SUBJECT TO THE SUPERVISION OF THE COMMISSIONER OF EDUCATION PURSUANT TO SECTION THREE HUNDRED NINE OF THE EDUCATION LAW. PUBLIC SCHOOL SHALL INCLUDE ANY CHARTER SCHOOL ORGANIZED PURSUANT TO ARTICLE FIFTY-SIX OF THE EDUCATION LAW. (D) "REGULAR SCHOOL YEAR", AS USED IN THIS SUBDIVISION, SHALL MEAN THE MONTHS OF THE TAXABLE YEAR EXCLUSIVE OF JULY AND AUGUST. (4) ADDITIONAL INFORMATION. ANY CLAIM FOR A MODIFICATION UNDER THIS SUBDIVISION SHALL BE ACCOMPANIED BY SUCH INFORMATION AS THE COMMISSIONER MAY REQUIRE. S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2010.

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