NY State Senate Bill 2019-S5067A

Senate Bill S5067A

2019-2020 Legislative Session

Relates to a tax credit for employers who contribute to a college choice tuition savings account on behalf of an employee

download bill text pdf

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to budget and revenue
May 29, 2019	print number 5067a
May 29, 2019	amend and recommit to budget and revenue
Apr 05, 2019	referred to budget and revenue

Bill Amendments

Original

A (Active)

2019-S5067 - Details

See Assembly Version of this Bill:: A8243
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B, 606 & 1511, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S96, A3348
2023-2024: S510, A2465

2019-S5067 - Summary

Creates a tax credit for employers who contribute to a college choice tuition savings account on behalf of an employee.

2019-S5067 - Sponsor Memo

                                
 
BILL NUMBER: S5067                      REVISED 4/15/2019

SPONSOR: THOMAS
 
TITLE OF BILL:  An act to amend the tax law, in relation to creating a
tax credit for employers who contribute to a college choice tuition
savings account on behalf of an employee

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of the bill is to create an avenue to relieve students of
their debt by incentivizing employers to contribute towards the debt
through tax credit.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the tax law by adding a new subdivision 53.

-Subdivision 53 states the amount of the tax credit allowed and the
application of the tax credit.

Section 2 of the bill of subsection (i) of section 606 of the law is

amended by adding (xliv) under subsection (jjj) stating employer college
choice tuition savings contribution and the amount of credit.

Section 3 of the bill amends the tax law by adding a new subsection

(jjj) stating the allowance of credit, the amount of credit allowed and
the application of credit.

Section 4 states the effective date of the bill.

 
JUSTIFICATION:

Over $90 billion is owed in student debt by almost 2.3 million New York-
ers. The debts students incur are not only financially crushing, but
also carry a lasting burden that affect their ability to buy property,
save, plan for family, and even further their career goals.  The members
of minority communities are disproportionately affected by them. This
legislation aims to alleviate some of that burden for students who grad-
uated, and are employed and/or seeking further education thereafter. It
incentivize companies and firms to provide financial assistance towards
student debt in the form of tax incentives if they decide to contribute
to a family tuition account.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after the first of January next succeeding the date on
which it shall have become a law.

2019-S5067 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5067
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 5, 2019
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to creating a  tax  credit  for
   employers  who  contribute to a college choice tuition savings account
   on behalf of an employee

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  210-B  of the tax law is amended by adding a new
 subdivision 53 to read as follows:
   53. EMPLOYER COLLEGE CHOICE TUITION SAVINGS CONTRIBUTION CREDIT.   (A)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
 COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION,  AGAINST  THE
 TAX IMPOSED BY THIS ARTICLE, IF IT PROVIDES A CONTRIBUTION, ON BEHALF OF
 AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER ARTICLE FOUR-
 TEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
   (B)  AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH (A) OF
 THIS SUBDIVISION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S  PAYMENT,
 ON  BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER
 ARTICLE FOURTEEN-A OF THE EDUCATION  LAW  BY  SUCH  EMPLOYEE.  PROVIDED,
 HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL EXCEED
 THE EXCLUSION LIMITS SET FORTH IN PARAGRAPH THIRTY-TWO OF SUBSECTION (C)
 OF SECTION SIX HUNDRED TWELVE OF THIS CHAPTER.
   (C)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE.  IF,  HOWEVER,  THE  AMOUNT  OF
 CREDITS  ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
 TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
 TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10997-02-9

 S. 5067                             2
 
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:
 (XLIV) EMPLOYER COLLEGE              AMOUNT OF CREDIT
 CHOICE TUITION SAVINGS               UNDER SUBDIVISION
 CONTRIBUTION CREDIT UNDER            FIFTY-THREE OF SECTION
 SUBSECTION (JJJ)                     TWO HUNDRED TEN-B
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (jjj) to read as follows:
   (JJJ) EMPLOYER COLLEGE CHOICE  TUITION  SAVINGS  CONTRIBUTION  CREDIT.
 (1)  ALLOWANCE  OF CREDIT.   A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
 COMPUTED AS PROVIDED IN PARAGRAPH TWO OF THIS  SUBSECTION,  AGAINST  THE
 TAX  IMPOSED  BY  THIS  ARTICLE,  IF  IT PROVIDES FOR A CONTRIBUTION, ON
 BEHALF OF AN EMPLOYEE, TO A FAMILY  TUITION  ACCOUNT  ESTABLISHED  UNDER
 ARTICLE FOURTEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
   (2)  AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF
 THIS SUBSECTION SHALL BE IN AN AMOUNT EQUAL TO THE  TAXPAYER'S  CONTRIB-
 UTION, ON BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED
 UNDER  ARTICLE  FOURTEEN-A  OF  THE  EDUCATION  LAW  BY  SUCH  EMPLOYEE.
 PROVIDED, HOWEVER, THAT NO SUCH CREDIT  ALLOWED  UNDER  THIS  SUBSECTION
 SHALL  EXCEED  THE EXCLUSION LIMITS SET FORTH IN PARAGRAPH THIRTY-TWO OF
 SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE.
   (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
 HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
 SHALL BE PAID THEREON.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after the first of January  next  succeeding  the
 date on which it shall have become a law.

2019-S5067A (ACTIVE) - Details

See Assembly Version of this Bill:: A8243
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B, 606 & 1511, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S96, A3348
2023-2024: S510, A2465

2019-S5067A (ACTIVE) - Summary

Creates a tax credit for employers who contribute to a college choice tuition savings account on behalf of an employee.

2019-S5067A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5067A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the tax law, in relation to creating a tax credit for
employers who contribute to a college choice tuition savings account on
behalf of an employee

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of the bill is to increase New Yorkers' college savings for
their children by incentivizing employers to contribute to employees'
family tuition saving accounts, otherwise known as college choice
tuition savings accounts, or 529 plans.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 210-B of the tax law by adding
subdivision 54.

- Subparagraph (a) of subdivision 54 states that taxpayers are allowed a
credit against their New York State corporate income taxes if they
contribute to an employee's family tuition account as established under
article fourteen-A of the education law.  Subparagraph (b) of subdivi-
sion 54 states the amount of credit, which shall be equal to the taxpay-
ers payments on behalf of an employee to a family tuition account estab-
lished under article fourteen-A of the education law, provided it does
not exceed five thousand dollars.

- Subparagraph (c) of subdivision 54 states the application of the cred-
it, which cannot reduce tax due to less than the fixed dollar minimum
tax as prescribed by subparagraph (d) of subdivision one of section two
hundred ten of this article. If the credit exceeds tax liability for a
given year, that excess payment will be credit to the taxpayer.

- Subparagraph (d) of subdivision 54 states credit recapture, which for
provisions requiring recapture of credit, section forty-four of this
chapter applies.

Section 2 of the bill amends subparagraph (b) of paragraph 1 of
subsection (i) of section 606 of the tax law by adding a new clause,
xlv. This new clause adds the college choice tuition savings credit to
the list of investment tax credits against the personal income tax
derived from a taxpayer's income that results from holding shares in a
corporation.

Section 3 of the bill amends section 606 of the tax law by adding a new
subsection, (kkk). This subsection repeats the information stated in
section 210-B subdivision 54, stating the allowance, amount, application
and recapture of the tax credit in subdivisions 1-4. This section
provides a layout of the rules associated with the new credit created in
section 2 of the bill.

Section 4 of the bill amends Section 1511 of the tax law and adds a new
subdivision, (ee). This section applies the tax credit for an employer
contributing to an employee's family tuition account as established
under article fourteen-A of the education law to the corporate income

tax on insurance companies. This section states the allowance, amount,
application and recapture of the credit in subdivisions 1-4.

Section 5 of the bill provides the effective date, which is immediately,
and applies to taxable years beginning on or after the first day of the
January following the date on which this bill becomes a law.

 
JUSTIFICATION:

The cost of attending college is significant. According to the National
Conference of State Legislatures, in 2016, the net price to attend a
four-year public university full time for one year following the
subtraction of financial aid was $14,120, while the median amount
invested in a 529 plan in 2016 was $14,700. Even if students attended
local community, state or city colleges, which is not always logis-
tically possible, the average 529 holder would still be unable to pay
for their child's 4-year degree. What's more, according to the Pew Char-
itable Trusts, there were 13 million 529 accounts in the US in 2017,
while according to the US Census Bureau, there were 79.2 million four-
person family households in the country. Clearly, many New Yorkers do
not have savings set aside for their children's education. Many young
New Yorkers recognize that in order to achieve their professional aspi-
rations, they must earn a bachelor's degree.  Put together, this means
that many New Yorkers must choose either to not attend college or to
take on debt.

Many New Yorkers have chosen the latter. Over $90 billion is owed in
student debt by almost 2.3 million New Yorkers. The Rockefeller Insti-
tute of Government indicates that in 2018 58% of college students in New
York graduated with debt, with the average amount of that debt being
$30,346. For African Americans and Latinos, the average debt is signif-
icantly higher. Student debt hampers the futures of college graduates,
as it often delays family planning, home ownership, and other major
investments. This debt crisis has also pushed swaths of New Yorkers away
from higher education, or forced them to delay or end their education
due to debt prospects.

This crisis affects all New Yorkers. When people have higher debt, they
are less likely to purchase consumer products, thereby decreasing
economic activity. And, according to a 2013 study conducted by the
Economic Policy Institute, the most successful way to increase growth in
a state is to invest in education, as the state's workforce becomes more
productive, thus allowing the state to attract more businesses, which
causes average incomes to rise.  Moreover, the student debt crisis is
holding New York back from achieving its full potential. By promoting
college saving, this bill will enable parents to financially support
their children's higher education, decrease student debt, and foster New
York as a prime location for businesses, families, and individuals to
thrive.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Assuming that approximately 25-30 percent of employers claim the credit,
net tax receipts will decrease by approximately $15 million annually
(the average amount between 25% and 30% participation rate).The loss of
revenue to the State in State Fiscal Year 2020 is $3 million. Once it is
fully annualized, the loss of revenue to the State is approximately $15
million per year.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after the first of January next succeeding the date on
which this bill shall have become a law.

2019-S5067A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5067--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 5, 2019
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the tax law, in relation to creating a  tax  credit  for
   employers  who  contribute to a college choice tuition savings account
   on behalf of an employee
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  210-B  of the tax law is amended by adding a new
 subdivision 54 to read as follows:
   54. EMPLOYER COLLEGE CHOICE TUITION SAVINGS CONTRIBUTION CREDIT.   (A)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
 COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION,  AGAINST  THE
 TAX IMPOSED BY THIS ARTICLE, IF IT PROVIDES A CONTRIBUTION, ON BEHALF OF
 AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER ARTICLE FOUR-
 TEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
   (B)  AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH (A) OF
 THIS SUBDIVISION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S  PAYMENT,
 ON  BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER
 ARTICLE FOURTEEN-A OF THE EDUCATION  LAW  BY  SUCH  EMPLOYEE.  PROVIDED,
 HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL EXCEED
 FIVE THOUSAND DOLLARS PER EMPLOYEE.
   (C)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE.  IF,  HOWEVER,  THE  AMOUNT  OF
 CREDITS  ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
 TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
 TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10997-04-9

 S. 5067--A                          2
 
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (D)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by  adding a new clause (xlv) to read as
 follows:
 (XLV) EMPLOYER COLLEGE               AMOUNT OF CREDIT
 CHOICE TUITION SAVINGS               UNDER SUBDIVISION
 CONTRIBUTION CREDIT UNDER            FIFTY-FOUR OF SECTION
 SUBSECTION (KKK)                     TWO HUNDRED TEN-B
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (kkk) to read as follows:
   (KKK)  EMPLOYER  COLLEGE  CHOICE  TUITION SAVINGS CONTRIBUTION CREDIT.
 (1) ALLOWANCE OF CREDIT.  A TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE
 COMPUTED  AS  PROVIDED  IN PARAGRAPH TWO OF THIS SUBSECTION, AGAINST THE
 TAX IMPOSED BY THIS ARTICLE, IF  IT  PROVIDES  FOR  A  CONTRIBUTION,  ON
 BEHALF  OF  AN  EMPLOYEE,  TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER
 ARTICLE FOURTEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
   (2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE  OF
 THIS  SUBSECTION  SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S CONTRIB-
 UTION, ON BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED
 UNDER  ARTICLE  FOURTEEN-A  OF  THE  EDUCATION  LAW  BY  SUCH  EMPLOYEE.
 PROVIDED,  HOWEVER,  THAT  NO  SUCH CREDIT ALLOWED UNDER THIS SUBSECTION
 SHALL EXCEED FIVE THOUSAND DOLLARS PER EMPLOYEE.
   (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
 HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
 SHALL BE PAID THEREON.
   (4) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   §  4. Section 1511 of the tax law is amended by adding a new  subdivi-
 sion (ee) to read as follows:
   (EE) EMPLOYER COLLEGE CHOICE TUITION SAVINGS CONTRIBUTION CREDIT.  (1)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
 COMPUTED AS PROVIDED IN PARAGRAPH (2) OF THIS SUBDIVISION,  AGAINST  THE
 TAX IMPOSED BY THIS ARTICLE, IF IT PROVIDES A CONTRIBUTION, ON BEHALF OF
 AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER ARTICLE FOUR-
 TEEN-A OF THE EDUCATION LAW BY SUCH EMPLOYEE.
   (2)  AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF
 THIS SUBDIVISION SHALL BE IN AN AMOUNT EQUAL TO THE TAXPAYER'S  PAYMENT,
 ON  BEHALF OF AN EMPLOYEE, TO A FAMILY TUITION ACCOUNT ESTABLISHED UNDER
 ARTICLE FOURTEEN-A OF THE EDUCATION LAW BY  SUCH  EMPLOYEE.    PROVIDED,
 HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL EXCEED
 FIVE THOUSAND DOLLARS PER EMPLOYEE.
   (3)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN  THE  MINIMUM
 FIXED  BY  PARAGRAPH  FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
 TWO OR SECTION FIFTEEN HUNDRED  TWO-A  OF  THIS  ARTICLE,  WHICHEVER  IS
 APPLICABLE.  HOWEVER,  IF  THE  AMOUNT  OF THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAXPAYER'S  TAX  TO  SUCH
 AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN
 OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE

 S. 5067--A                          3
 
 PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
 HOWEVER,  THE  PROVISIONS OF SUBSECTION (C) OF ONE THOUSAND EIGHTY-EIGHT
 OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (4)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on and after the first of January  next  succeeding  the
 date on which it shall have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.