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

                                  2223

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 14, 2013
                               ___________

Introduced  by Sens. LAVALLE, DeFRANCISCO, FLANAGAN, MAZIARZ, RANZENHOF-
  ER, SEWARD, ZELDIN -- 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 the definition of "allowable
  college tuition expenses" and the tax credit allowed for such expenses

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraph (A)  of  paragraph  2  of  subsection  (t)  of
section 606 of the tax law, as amended by section 1 of part N of chapter
85 of the laws of 2002, is amended to read as follows:
  (A)  The  term  "allowable  college  tuition  expenses" shall mean the
amount of qualified college tuition expenses of eligible  students  paid
by  the  taxpayer  during  the  taxable year[,]. THE AMOUNT OF QUALIFIED
COLLEGE TUITION EXPENSES SHALL BE limited [to] AS FOLLOWS:  FOR  TAXABLE
YEARS BEGINNING AFTER TWO THOUSAND AND BEFORE TWO THOUSAND FOURTEEN, ten
thousand  dollars  for each such student; FOR TAXABLE YEARS BEGINNING IN
TWO THOUSAND FOURTEEN, TWELVE THOUSAND DOLLARS  FOR  EACH  STUDENT;  FOR
TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  FIFTEEN, FOURTEEN THOUSAND
DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND
SIXTEEN,  SIXTEEN  THOUSAND  DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS
BEGINNING IN TWO THOUSAND SEVENTEEN, EIGHTEEN THOUSAND DOLLARS FOR  EACH
STUDENT;  AND  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN,
TWENTY THOUSAND DOLLARS PER STUDENT;
  S 2. Paragraph 4 of subsection (t) of section 606 of the tax  law,  as
added  by  section  1  of  part DD of chapter 63 of the laws of 2000, is
amended to read as follows:
  (4) Amount of credit. [If allowable college tuition expenses are  less
than five thousand dollars, the amount of the credit provided under this
subsection  shall be equal to the applicable percentage of the lesser of
allowable college tuition expenses or two hundred dollars. If  allowable

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06215-01-3
              

S. 2223                             2

college  tuition  expenses are five thousand dollars or more, the amount
of the credit provided under this  subsection  shall  be  equal  to  the
applicable  percentage  of the allowable college tuition expenses multi-
plied by four percent.]
  THE  AMOUNT  OF  THE CREDIT SHALL BE DETERMINED IN ACCORDANCE WITH THE
FOLLOWING SCHEDULES:
  (A) FOR TAXABLE YEARS BEGINNING AFTER  TWO  THOUSAND  AND  BEFORE  TWO
THOUSAND FOURTEEN:
IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN FIVE THOUSAND DOLLARS     THE APPLICABLE PERCENTAGE OF THE
                                    LESSER OF ALLOWABLE COLLEGE TUITION
                                    EXPENSES OR TWO HUNDRED DOLLARS
FIVE THOUSAND DOLLARS OR MORE       THE APPLICABLE PERCENTAGE OF
                                    ALLOWABLE COLLEGE TUITION EXPENSES
                                    MULTIPLIED BY FOUR PERCENT
  (B) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN:
IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN SIX THOUSAND DOLLARS      THE LESSER OF ALLOWABLE COLLEGE
                                    TUITION EXPENSES OR TWO HUNDRED
                                    FORTY DOLLARS
SIX THOUSAND DOLLARS OR MORE        THE ALLOWABLE COLLEGE TUITION
                                    EXPENSES MULTIPLIED BY FOUR PERCENT
  (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FIFTEEN:
IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN SEVEN THOUSAND DOLLARS    THE LESSER OF ALLOWABLE COLLEGE
                                    TUITION EXPENSES OR TWO HUNDRED
                                    EIGHTY DOLLARS
SEVEN THOUSAND DOLLARS OR MORE      THE ALLOWABLE COLLEGE TUITION
                                    EXPENSES MULTIPLIED BY FOUR PERCENT
  (D) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN:
IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN EIGHT THOUSAND DOLLARS    THE LESSER OF ALLOWABLE COLLEGE
                                    TUITION EXPENSES OR THREE HUNDRED
                                    TWENTY DOLLARS
EIGHT THOUSAND DOLLARS OR MORE      THE ALLOWABLE COLLEGE TUITION
                                    EXPENSES MULTIPLIED BY FOUR PERCENT
  (E) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SEVENTEEN:
IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN NINE THOUSAND DOLLARS     THE LESSER OF ALLOWABLE COLLEGE
                                    TUITION EXPENSES OR THREE HUNDRED
                                    SIXTY DOLLARS
NINE THOUSAND DOLLARS OR MORE       THE ALLOWABLE COLLEGE TUITION
                                    EXPENSES MULTIPLIED BY FOUR PERCENT
  (F) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN:
IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
EXPENSES ARE:
LESS THAN TEN THOUSAND DOLLARS      THE LESSER OF ALLOWABLE COLLEGE
                                    TUITION EXPENSES OR FOUR HUNDRED
                                    DOLLARS
TEN THOUSAND DOLLARS OR MORE        THE ALLOWABLE COLLEGE TUITION
                                    EXPENSES MULTIPLIED BY FOUR PERCENT

S. 2223                             3

  Such  applicable  percentage  shall be twenty-five percent for taxable
years beginning in two thousand one, fifty  percent  for  taxable  years
beginning  in  two  thousand two, seventy-five percent for taxable years
beginning in two thousand three and  one  hundred  percent  for  taxable
years beginning after two thousand three.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2014.