BILL NUMBER:  S380A

 TITLE OF BILL :  An act to amend the tax law, in relation to
providing personal income taxpayers with a modification reducing
federal adjusted gross income for tuition paid at any institution of
higher education

 SUMMARY :

Subsection (c) of section 612 of the tax law is amended to allow for
up to three thousand dollars of the amount paid for tuition at any
institution of higher education within New York State provided that
the expense is for the taxpayer or for the taxpayer or for a dependent
of the taxpayer.

 JUSTIFICATION :

In New York State, higher education is becoming beyond the reach of
those with ambitions to obtain a degree. Tuition and fees at public 4
year universities have increased 127% in the past two decades, and the
New York State's Tuition Assistance Program (TAP) awards have not
increased proportionately to cover these rising costs. Consequently,
many more students are covering these costs with loans. In this state,
nearly 3 million students have loan debt, totaling to an amount of
approximately $73 billion in student loan debt.

              

The costs of higher education and large student loan debt can
potentially stymie economic growth and viability of New York State and
the United States. Graduates with student loan debt are less likely to
become homeowners, less likely to set aside money for their children's
college tuition and more likely to delay making contributions to their
own retirement.

In order to continue to have an educated populace, it is important to
provide safety nets and support students past and future. This
proposal would reward graduates by offering a tax deduction of up to
three thousand dollars of the amount paid for tuition at any
institution of higher education within New York State, provided that
the expense is for the taxpayer or a dependent of the taxpayer. The
tax credit will signify New York State's commitment to higher
education and the future of our citizens.

 LEGISLATIVE HISTORY :

2013-2014: S939
2012: S6403

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.