S T A T E   O F   N E W   Y O R K
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                                   3535
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2017
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 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".
   §  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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00413-01-7

              

 S. 3535                             2
 
   (C)  EXPENSES  RELATED  TO PREPARATION INCLUDING TUTORIAL SERVICES AND
 PREPARATION CLASSES FOR ANY EXAM DESCRIBED IN SUBPARAGRAPH (A) OR (B) OF
 THIS PARAGRAPH;
   (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.
   § 3. This act shall take effect immediately.