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

                                 9783--A

                          I N  A S S E M B L Y

                              May 22, 2014
                               ___________

Introduced  by M. of A. ROZIC -- read once and referred to the Committee
  on Ways and Means  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the tax law, in relation to establishing the college
  preparation tax credit act

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

  Section  1.  This  act shall be known and may be cited as the "college
preparation tax credit act".
  S 2. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  COLLEGE  PREPARATION  EXPENSE  CREDIT.  (1) A RESIDENT TAXPAYER
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR
ALLOWABLE  COLLEGE  PREPARATION EXPENSES. EACH TAXABLE YEAR, A CREDIT OF
UP TO FIVE HUNDRED DOLLARS PER CHILD  SHALL  BE  ALLOWED  FOR  QUALIFIED
COLLEGE  PREPARATION  EXPENSES  PAID  OR INCURRED BY THE TAXPAYER DURING
SUCH TAXABLE YEAR. NO CREDIT SHALL BE ALLOWED FOR ANY EXPENSES  PAID  OR
INCURRED DURING THE TAXABLE YEAR WITH RESPECT TO ANY INDIVIDUAL FOR WHOM
AN  ELECTION  IS  NOT  IN  EFFECT UNDER THIS SUBSECTION FOR SUCH TAXABLE
YEAR. AN ELECTION MAY NOT BE MADE  FOR  ANY  TAXABLE  YEAR  IF  SUCH  AN
ELECTION  IS  IN  EFFECT  WITH  RESPECT TO SUCH INDIVIDUAL FOR ANY THREE
PRIOR TAXABLE YEARS.
  (2) QUALIFIED COLLEGE  PREPARATION  EXPENSES.  FOR  PURPOSES  OF  THIS
SUBSECTION,  THE  TERM  "QUALIFIED  COLLEGE  PREPARATION EXPENSES" MEANS
AMOUNTS PAID OR INCURRED FOR:
  (A) FEES REQUIRED FOR TAKING ANY ADVANCED PLACEMENT  OR  INTERNATIONAL
BACCALAUREATE EXAM;
  (B)  FEES  REQUIRED  FOR  TAKING  THE SAT, THE ACT, OR ANY SAT SUBJECT
TEST;
  (C) EXPENSES RELATED TO PREPARATION INCLUDING  TUTORIAL  SERVICES  AND
PREPARATION CLASSES FOR ANY EXAM DESCRIBED IN SUBPARAGRAPH (A) OR (B) OF
THIS PARAGRAPH;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15301-03-4

              

A. 9783--A                          2

  (D)  FEES AND EXPENSES RELATED TO APPLICATIONS FOR ADMISSION TO PURSUE
A POSTSECONDARY COURSE OF STUDY AT AN ELIGIBLE EDUCATIONAL  INSTITUTION;
AND
  (E)  SUCH  OTHER  SIMILAR EXPENSES AND FEES AS THE COMMISSIONER MAY BY
REGULATION PRESCRIBE.
  (3) TREATMENT OF EXPENSES PAID BY DEPENDENT. IF A DEDUCTION UNDER THIS
SUBSECTION WITH RESPECT TO AN INDIVIDUAL IS ALLOWED TO ANOTHER  TAXPAYER
FOR A TAXABLE YEAR BEGINNING IN THE CALENDAR YEAR IN WHICH SUCH INDIVID-
UAL'S TAXABLE YEAR BEGINS:
  (A)  NO CREDIT SHALL BE ALLOWED UNDER PARAGRAPH ONE OF THIS SUBSECTION
TO SUCH INDIVIDUAL FOR SUCH INDIVIDUAL'S TAXABLE YEAR; AND
  (B) QUALIFIED COLLEGE PREPARATION EXPENSES  PAID  BY  SUCH  INDIVIDUAL
DURING  SUCH  INDIVIDUAL'S TAXABLE YEAR SHALL BE TREATED FOR PURPOSES OF
THIS SUBSECTION AS PAID BY SUCH OTHER TAXPAYER.
  S 3. This act shall take effect immediately.