Includes the tuition required for enrollment or attendance in a course of study leading to the granting of a post baccalaureate or other graduate degree within the definition of "qualified college tuition expenses" for the purposes of qualifying for the college tuition credit.

---

S2879-2013 Actions

• Jan 24, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2879-2013 Memo

BILL NUMBER:S2879

TITLE OF BILL:  An act to amend the tax law, in relation to including
the tuition of graduate students within the college tuition credit

PURPOSE OR GENERAL IDEA OF BILL:  Tax tuition credit for graduate
students.

SUMMARY OF SPECIFIC PROVISIONS:  Subparagraph (c) of paragraph two of
subsection (t) of section 606 of the tax law is amended to provide a tax
credit for students enrolled in a graduate program.

JUSTIFICATION:  Current law provides for a college tuition tax credit to
students enrolled or attending an institution of higher education,
whether full or part-time. An institution of higher education is defined
in the statute as any institution of higher education or business,
trade, technical, or other occupational school recognized and approved
by an accrediting agency. Tuition payments required for enrollment or
attendance in course of study leading to a post-baccalaureate or other
graduate degree are specifically exempted from the tax credit.

The maximum amount of qualified tuition expenses allowed for each eligi-
ble student is $10,000. If the total qualified tuition expenses are more
than $5,000, the credit for 2004 is four-Percent of the qualified
tuition expenses up to $10,000 per student. Therefore, the maximum
tuition credit allowed for 2004 would be $400 per student. If the total
qualified tuition expenses are less than $5,000, the credit is equal to
the lesser of the total qualified college tuition expenses or $200. The
student is therefore not credited back the entire amount of tuition but
at most only $400 per student.

Logically, the college tuition tax credit should be extended to cover
qualified graduate tuition expenses as well. Total graduate enrollment
has generally increased in the past three decades. College costs contin-
ue to rise, outpacing the rate of inflation. The percentage of under-
graduates who have borrowed and the average total amount borrowed has
consistently increased. Individuals often incur enormous debt to earn a
college education with no guarantee of job placement. During slow
economic times, businesses are not hiring and college graduates unable
to find jobs are choosing to attend graduate school, thus, taking on
additional debt burdens.

The graduate college tax credit will help those who need the tax credit
most. New York State graduate students, who often have greater debt
burdens then undergraduate students, will be able, to obtain a graduate
degree without mortgaging their future. Those with graduate degrees
potentially will earn more money and collectively better this state and
country. Therefore, the college tuition tax credit should be expanded to
graduate college tuition.

PRIOR LEGISLATIVE HISTORY:  S.2435 of 2007/08 S.4094 of 20011/12

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:  Immediately and shall apply to taxable years beginning
on or after January 1, 2014.

S2879-2013 Text

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

                                    2879

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 24, 2013
                                 ___________

  Introduced  by  Sen.  SMITH  -- 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  including  the  tuition  of
    graduate students within the college tuition credit

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


    Section 1. Subparagraph (C)  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:

    (C)  The  term  "qualified  college  tuition  expenses" shall mean the
  tuition required for the enrollment or attendance of an eligible student
  at an  institution  of  higher  education.  Provided,  however,  tuition
  payments  made  pursuant to the receipt of any scholarships or financial
  aid[, or tuition required for enrollment or attendance in  a  course  of
  study  leading to the granting of a post baccalaureate or other graduate
  degree,] shall be excluded from the  definition  of  "qualified  college
  tuition expenses".
    S 2. This act shall take effect immediately and shall apply to taxable
  years beginning on or after January 1, 2014.




   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD07228-01-3