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

                                  7413

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 16, 2013
                               ___________

Introduced  by M. of A. COLTON, WEPRIN -- Multi-Sponsored by -- M. of A.
  CRESPO -- read once and referred to the Committee on Ways and Means

AN ACT to amend the tax law,  in  relation  to  authorizing  a  personal
  income  tax deduction for elementary and secondary school teachers for
  certain expenses incurred for school supplies

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

  Section  1. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 40 to read as follows:
  (40) EXPENSES NOT IN EXCESS OF FOUR  HUNDRED  FIFTY  DOLLARS  ACTUALLY
INCURRED  AND PAID BY AN ELIGIBLE EDUCATOR FOR SCHOOL SUPPLIES, ACTUALLY
USED AND USEFUL, TO THE EXTENT NOT  DEDUCTIBLE  IN  DETERMINING  FEDERAL
ADJUSTED GROSS INCOME AND NOT REIMBURSED. FOR THE PURPOSES OF THIS PARA-
GRAPH, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
  (I) "ELIGIBLE EDUCATOR" MEANS A PERSON EMPLOYED AS A TEACHER, INSTRUC-
TOR,  COUNSELOR, PRINCIPAL OR AIDE IN A SCHOOL FOR AT LEAST NINE HUNDRED
HOURS DURING A SCHOOL YEAR.
  (II) "NONPUBLIC SCHOOL" HAS THE SAME MEANING AS PROVIDED FOR SUCH TERM
IN SUBPARAGRAPH (B)  OF  PARAGRAPH  THREE  OF  SUBSECTION  (J)  OF  THIS
SECTION.
  (III)  "SCHOOL"  MEANS ANY PUBLIC OR NONPUBLIC SCHOOL PROVIDING EDUCA-
TION IN ANY GRADE FROM KINDERGARTEN THROUGH TWELFTH.
  (IV) "SCHOOL SUPPLIES" INCLUDES BOOKS, SUPPLIES (OTHER  THAN  NON-ATH-
LETIC  SUPPLIES  FOR COURSES OF INSTRUCTION IN HEALTH OR PHYSICAL EDUCA-
TION), COMPUTER EQUIPMENT (INCLUDING RELATED SOFTWARE AND SERVICES), AND
OTHER EQUIPMENT AND SUPPLEMENTAL MATERIALS USED BY THE ELIGIBLE EDUCATOR
IN THE CLASSROOM.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2014.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04180-02-3

              

A. 7413                             2

  This bill would allow eligible educators to deduct up to $450 annually
for the out-of-pocket expenses for  school  supplies  under  New  York's
personal income tax in addition to the existing Federal deduction.
  We  estimate  that this bill would result in a $1 million revenue loss
during SFY 2014-15 and $3.8 million annually thereafter, if the existing
Federal deduction is extended beyond December 31,  2013.  Alternatively,
if  the  Federal  deduction  is not extended, the bill would result in a
$1.7 million revenue loss during SFY 2014-15 and $6.6  million  annually
thereafter.
  This fiscal note, dated March 14, 2013, was prepared by Scott Palladi-
no, Assistant Deputy Commissioner, Department of Taxation and Finance.