S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3856--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2017
                                ___________
 
 Introduced by Sens. LAVALLE, AKSHAR, DeFRANCISCO, FUNKE, GALLIVAN, GRIF-
   FO,  MARCHIONE,  MURPHY, PHILLIPS, RANZENHOFER, SERINO, SEWARD -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on  Investigations and Government Operations -- recommitted
   to the  Committee  on  Investigations  and  Government  Operations  in
   accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN ACT to amend the tax law, in relation to the definition of "allowable
   college tuition expenses" and the tax credit allowed for such expenses
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (A)  of  paragraph  2  of  subsection  (t)  of
 section 606 of the tax law, as amended by section 1 of part N of chapter
 85 of the laws of 2002, is amended to read as follows:
   (A)  The  term  "allowable  college  tuition  expenses" shall mean the
 amount of qualified college tuition expenses of eligible  students  paid
 by  the  taxpayer  during  the  taxable year[,]. THE AMOUNT OF QUALIFIED
 COLLEGE TUITION EXPENSES SHALL BE limited [to] AS FOLLOWS:  FOR  TAXABLE
 YEARS  BEGINNING  AFTER TWO THOUSAND AND BEFORE TWO THOUSAND TWENTY, ten
 thousand dollars for each such student; FOR TAXABLE YEARS  BEGINNING  IN
 TWO THOUSAND TWENTY, TWELVE THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXA-
 BLE  YEARS  BEGINNING  IN  TWO  THOUSAND  TWENTY-ONE,  FOURTEEN THOUSAND
 DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND
 TWENTY-TWO, SIXTEEN THOUSAND DOLLARS FOR EACH STUDENT; FOR TAXABLE YEARS
 BEGINNING  IN  TWO  THOUSAND TWENTY-THREE, EIGHTEEN THOUSAND DOLLARS FOR
 EACH STUDENT; AND FOR TAXABLE YEARS BEGINNING AFTER TWO  THOUSAND  TWEN-
 TY-THREE, TWENTY THOUSAND DOLLARS PER STUDENT;
   §  2.  Paragraph 4 of subsection (t) of section 606 of the tax law, as
 added by section 1 of part DD of chapter 63 of  the  laws  of  2000,  is
 amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09341-02-8

 S. 3856--A                          2
 
   (4)  Amount of credit. [If allowable college tuition expenses are less
 than five thousand dollars, the amount of the credit provided under this
 subsection shall be equal to the applicable percentage of the lesser  of
 allowable  college tuition expenses or two hundred dollars. If allowable
 college  tuition  expenses are five thousand dollars or more, the amount
 of the credit provided under this  subsection  shall  be  equal  to  the
 applicable  percentage  of the allowable college tuition expenses multi-
 plied by four percent.] THE AMOUNT OF THE CREDIT SHALL BE DETERMINED  IN
 ACCORDANCE WITH THE FOLLOWING SCHEDULES:
   (A)  FOR  TAXABLE  YEARS  BEGINNING  AFTER TWO THOUSAND AND BEFORE TWO
 THOUSAND TWENTY:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN FIVE THOUSAND DOLLARS     THE APPLICABLE PERCENTAGE OF THE
                                     LESSER OF ALLOWABLE COLLEGE TUITION
                                     EXPENSES OR TWO HUNDRED DOLLARS
 FIVE THOUSAND DOLLARS OR MORE       THE APPLICABLE PERCENTAGE OF
                                     ALLOWABLE COLLEGE TUITION EXPENSES
                                     MULTIPLIED BY FOUR PERCENT
   (B) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN SIX THOUSAND DOLLARS      THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR TWO HUNDRED
                                     FORTY DOLLARS
 SIX THOUSAND DOLLARS OR MORE        THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (C) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-ONE:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN SEVEN THOUSAND DOLLARS    THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR TWO HUNDRED
                                     EIGHTY DOLLARS
 SEVEN THOUSAND DOLLARS OR MORE      THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (D) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN EIGHT THOUSAND DOLLARS    THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR THREE HUNDRED
                                     TWENTY DOLLARS
 EIGHT THOUSAND DOLLARS OR MORE      THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (E) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-THREE:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN NINE THOUSAND DOLLARS     THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR THREE HUNDRED
                                     SIXTY DOLLARS
 NINE THOUSAND DOLLARS OR MORE       THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   (F) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-THREE:
 IF ALLOWABLE COLLEGE TUITION        THE TAX CREDIT IS EQUAL TO:
 EXPENSES ARE:
 LESS THAN TEN THOUSAND DOLLARS      THE LESSER OF ALLOWABLE COLLEGE
                                     TUITION EXPENSES OR FOUR HUNDRED

 S. 3856--A                          3
 
                                     DOLLARS
 TEN THOUSAND DOLLARS OR MORE        THE ALLOWABLE COLLEGE TUITION
                                     EXPENSES MULTIPLIED BY FOUR PERCENT
   Such  applicable  percentage  shall be twenty-five percent for taxable
 years beginning in two thousand one, fifty  percent  for  taxable  years
 beginning  in  two  thousand two, seventy-five percent for taxable years
 beginning in two thousand three and  one  hundred  percent  for  taxable
 years beginning after two thousand three.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2020.