S T A T E   O F   N E W   Y O R K
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                                  4397

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2011
                               ___________

Introduced by M. of A. CROUCH -- read once and referred to the Committee
  on Ways and Means

AN  ACT  to  amend the tax law, in relation to establishing a credit for
  developing a college to work program

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

  Section  1.  Section  210  of  the  tax law is amended by adding a new
subdivision 22-a to read as follows:
  22-A. CREDIT FOR COLLEGE TO WORK PROGRAM. (A) ALLOWANCE OF  CREDIT.  A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS HEREINAFTER
PROVIDED, AGAINST THE TAX  IMPOSED  BY  THIS  ARTICLE,  BASED  UPON  ITS
PAYMENT OF TUITION TO AN INSTITUTION OF HIGHER EDUCATION ON BEHALF OF AN
INDIVIDUAL  IN  EXCHANGE  FOR  THE  INDIVIDUAL  AGREEING TO WORK FOR THE
TAXPAYER FOR A NUMBER OF YEARS, AS SET  FORTH  IN  A  WRITTEN  AGREEMENT
BETWEEN THE TAXPAYER AND THE INDIVIDUAL.
  (B) TUITION. FOR THE PURPOSES OF THIS CREDIT, THE TERM "TUITION" SHALL
MEAN  THE  TUITION AND FEES PAID FOR THE ENROLLMENT AND ATTENDANCE OF AN
INDIVIDUAL AT AN INSTITUTION OF HIGHER EDUCATION, AS WELL AS MONIES PAID
FOR TEXTBOOKS IN CONNECTION WITH ATTENDANCE AT AN INSTITUTION OF  HIGHER
EDUCATION.    PROVIDED, HOWEVER, ANY AMOUNTS WHICH HAVE BEEN PAID FOR OR
REIMBURSED BY ANY  OTHER  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 "TUITION".
  (C)  INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
HIGHER EDUCATION, RECOGNIZED AND APPROVED BY THE REGENTS, OR ANY SUCCES-
SOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK OR  ACCRED-
ITED  BY  A  NATIONALLY  RECOGNIZED  ACCREDITING  AGENCY  OR ASSOCIATION
ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGANIZATION,  OF  THE
UNIVERSITY  OF  THE  STATE OF NEW YORK, WHICH PROVIDES A COURSE OF STUDY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04763-01-1
              

A. 4397                             2

LEADING TO THE GRANTING  OF  A  POST-SECONDARY  DEGREE,  CERTIFICATE  OR
DIPLOMA.
  (D) QUALIFIED INDIVIDUAL. FOR PURPOSES OF THIS CREDIT, THE TERM "QUAL-
IFIED  INDIVIDUAL"  SHALL MEAN ANY INDIVIDUAL WHO IS NOT A SPOUSE, CHILD
OR DEPENDENT OF THE TAXPAYER OR ANY INDIVIDUAL  WHO  IS  NOT  A  SPOUSE,
CHILD OR DEPENDENT OF ANY OFFICER OR EMPLOYEE OF THE TAXPAYER.
  (E) WRITTEN AGREEMENT.  FOR PURPOSES OF THIS CREDIT, THE TERM "WRITTEN
AGREEMENT"  SHALL  MEAN A DOCUMENT SIGNED AND DATED BY BOTH THE TAXPAYER
AND THE QUALIFIED INDIVIDUAL WHICH CONTAINS PROVISIONS INCLUDING BUT NOT
LIMITED TO THE MINIMUM SALARY WHICH THE TAXPAYER WILL PAY TO THE  QUALI-
FIED INDIVIDUAL UPON COMPLETION OF THE INDIVIDUAL'S DEGREE; THE REQUIRED
DURATION  OF  EMPLOYMENT UPON COMPLETION OF THE INDIVIDUAL'S DEGREE; AND
THE PARTIES' RESPECTIVE RESPONSIBILITIES IN THE EVENT THAT THE  TAXPAYER
CEASES  OPERATIONS OR LATER DECIDES NOT TO OFFER EMPLOYMENT TO THE INDI-
VIDUAL UPON COMPLETION OF HIS/HER DEGREE OR IN THE EVENT THAT THE QUALI-
FIED INDIVIDUAL FAILS TO COMPLETE THE DEGREE OR TO WORK FOR THE TAXPAYER
FOR THE AGREED UPON TERM.
  (F) AMOUNT OF CREDIT. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,
A TAXPAYER WHICH PROVIDES FOR THE PAYMENT  OF  AN  INDIVIDUAL'S  TUITION
UNDER THE COLLEGE TO WORK PROGRAM ESTABLISHED BY THIS SUBDIVISION, SHALL
BE  ALLOWED  A  CREDIT  AGAINST  THE TAX IMPOSED BY THIS ARTICLE, TO THE
EXTENT OF TWENTY-FIVE PERCENT  OF  MONIES  PAID  FOR  EACH  INDIVIDUAL'S
TUITION,  BUT SUCH CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS FOR ONE
YEAR FOR EACH SUCH QUALIFIED INDIVIDUAL.
  (G) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS  THAN  THE
HIGHER  OF  THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF  THE  AMOUNT  OF  CREDIT
ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE  DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  2.  Clause  (xxxi) of subparagraph (B) of paragraph 1 of subsection
(i) of section 606 of the tax law, as added by section 14 of part  Q  of
chapter  57  of the laws of 2010, is renumbered clause (xxxii) and a new
clause (xxxiii) is added to read as follows:

(XXXIII) COLLEGE TO WORK PROGRAM     AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (S-1)        SUBDIVISION TWENTY-TWO-A
                                     OF SECTION TWO HUNDRED TEN

  S 3. Section 606 of the tax law is amended by adding a new  subsection
(s-1) to read as follows:
  (S-1)  CREDIT  FOR COLLEGE TO WORK PROGRAM. (1) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER
PROVIDED,  AGAINST  THE  TAX  IMPOSED  BY  THIS ARTICLE, BASED UPON SUCH
TAXPAYER'S PAYMENT OF TUITION TO AN INSTITUTION OF HIGHER  EDUCATION  ON
BEHALF  OF AN INDIVIDUAL IN EXCHANGE FOR THE INDIVIDUAL AGREEING TO WORK
FOR THE TAXPAYER FOR A NUMBER OF YEARS, AS SET FORTH IN A WRITTEN AGREE-
MENT BETWEEN THE TAXPAYER AND THE INDIVIDUAL.
  (2) TUITION. FOR THE PURPOSES OF THIS CREDIT, THE TERM "TUITION" SHALL
MEAN THE TUITION AND FEES PAID FOR THE ENROLLMENT AND ATTENDANCE  OF  AN
INDIVIDUAL AT AN INSTITUTION OF HIGHER EDUCATION, AS WELL AS MONIES PAID
FOR  TEXTBOOKS IN CONNECTION WITH ATTENDANCE AT AN INSTITUTION OF HIGHER
EDUCATION. PROVIDED, HOWEVER, ANY AMOUNTS WHICH HAVE BEEN  PAID  FOR  OR
REIMBURSED  BY  ANY  OTHER  SCHOLARSHIPS  OR  FINANCIAL  AID, OR TUITION

A. 4397                             3

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 "TUITION".
  (3)  INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
HIGHER EDUCATION, RECOGNIZED AND APPROVED BY THE REGENTS, OR ANY SUCCES-
SOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK OR  ACCRED-
ITED  BY  A  NATIONALLY  RECOGNIZED  ACCREDITING  AGENCY  OR ASSOCIATION
ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGANIZATION,  OF  THE
UNIVERSITY  OF  THE  STATE OF NEW YORK, WHICH PROVIDES A COURSE OF STUDY
LEADING TO THE GRANTING  OF  A  POST-SECONDARY  DEGREE,  CERTIFICATE  OR
DIPLOMA.
  (4) QUALIFIED INDIVIDUAL. FOR PURPOSES OF THIS CREDIT, THE TERM "QUAL-
IFIED  INDIVIDUAL"  SHALL MEAN ANY INDIVIDUAL WHO IS NOT A SPOUSE, CHILD
OR DEPENDENT OF THE TAXPAYER OR ANY INDIVIDUAL  WHO  IS  NOT  A  SPOUSE,
CHILD OR DEPENDENT OF ANY OFFICER OR EMPLOYEE OF THE TAXPAYER.
  (5)  WRITTEN AGREEMENT. FOR PURPOSES OF THIS CREDIT, THE TERM "WRITTEN
AGREEMENT" SHALL MEAN A DOCUMENT SIGNED AND DATED BY BOTH  THE  TAXPAYER
AND THE QUALIFIED INDIVIDUAL WHICH CONTAINS PROVISIONS INCLUDING BUT NOT
LIMITED  TO THE MINIMUM SALARY WHICH THE TAXPAYER WILL PAY TO THE QUALI-
FIED INDIVIDUAL UPON COMPLETION OF THE INDIVIDUAL'S DEGREE; THE REQUIRED
DURATION OF EMPLOYMENT UPON COMPLETION OF THE INDIVIDUAL'S  DEGREE;  AND
THE  PARTIES' RESPECTIVE RESPONSIBILITIES IN THE EVENT THAT THE TAXPAYER
CEASES OPERATIONS OR LATER DECIDES NOT TO OFFER EMPLOYMENT TO THE  INDI-
VIDUAL UPON COMPLETION OF HIS/HER DEGREE OR IN THE EVENT THAT THE QUALI-
FIED INDIVIDUAL FAILS TO COMPLETE THE DEGREE OR TO WORK FOR THE TAXPAYER
FOR THE AGREED UPON TERM.
  (6) AMOUNT OF CREDIT. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,
A TAXPAYER WHO PROVIDES FOR THE PAYMENT OF AN INDIVIDUAL'S TUITION UNDER
THE  COLLEGE  TO  WORK  PROGRAM ESTABLISHED BY THIS SUBSECTION, SHALL BE
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO THE  EXTENT
OF TWENTY-FIVE PERCENT OF MONIES PAID FOR EACH INDIVIDUAL'S TUITION, BUT
SUCH CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS FOR ONE YEAR FOR EACH
SUCH QUALIFIED INDIVIDUAL.
  (7) CARRYOVER. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR  ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX AMOUNT, ANY AMOUNT
OF THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR  OR  YEARS,  AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  4.  This  act  shall take effect immediately and shall apply to all
taxable years commencing after January 1, 2010.