S T A T E   O F   N E W   Y O R K
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                                  5884

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            September 9, 2011
                               ___________

Introduced  by  Sens.  LAVALLE, BONACIC, DeFRANCISCO, FUSCHILLO, GRIFFO,
  HANNON, JOHNSON,  MAZIARZ,  RANZENHOFER,  SALAND  --  read  twice  and
  ordered  printed, and when printed to be committed to the Committee on
  Rules

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  TWELVE,  ten
thousand  dollars  for each such student; FOR TAXABLE YEARS BEGINNING IN
TWO THOUSAND TWELVE, TWELVE THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXA-
BLE YEARS BEGINNING IN TWO THOUSAND THIRTEEN, FOURTEEN THOUSAND  DOLLARS
FOR  EACH STUDENT; FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN,
SIXTEEN THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXABLE  YEARS  BEGINNING
IN TWO THOUSAND FIFTEEN, EIGHTEEN THOUSAND DOLLARS FOR EACH STUDENT; AND
FOR  TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN, 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.
                                                           LBD13345-01-1
              

S. 5884                             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 TWELVE:
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 TWELVE:
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 THIRTEEN:
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 FOURTEEN:
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 FIFTEEN:
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 FIFTEEN:
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. 5884                             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, 2012.