BILL NUMBER: S231
SPONSOR: TEDISCO
 
TITLE OF BILL:
An act to amend the tax law, in relation to enacting the graduate
outreach assistance law to exempt from state income taxation the first
two hundred fifty thousand dollars earned by a college graduate
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill exempts four-year college graduates from state income tax on
the first $250,000 earned after graduation, with a maximum of $50,000
being claimed each year. Further this bill exempts two-year college
graduates from state income tax on the first $150,000 earned after grad-
uation, with a maximum of $25,000 being claimed each year.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. This act shall be known as the "graduate outreach assistance
law."
Section 2. Paragraph 3 of subsection (a) of section 605 of the tax law,
as added by Chapter 28 of the laws of 1987 isò amended to read as
follows:
(3) Accounting methods (A) A taxpayer's method of accounting under this
article shall be the same as his/her method of accounting for federal
income tax purposes, with the exception of the provisions of subpara-
graph (B) of this paragraph. In the absence of any method of accounting
for federal income tax purposes, the New York taxable income shall be
computed under such method as in the opinion of the state tax commission
clearly reflects income.
(B) For the purposes of computing New York State taxable income, a
taxpayer shall not be required to include in such computation the first
two hundred and fifty thousand dollars he or she earns following gradu-
ation from any college or university having attained a four year degree
or higher or first one hundred and fifty thousand dollars he or she
earns following graduation with a two ear degree.
 
JUSTIFICATION:
This proposal will provide an incentive for college graduates to stay or
return to New York after graduating from college. According to the
United States Census, from 1995-2000, 119,666 young, single and college
educated New Yorkers moved to other states. The Post- secondary Educa-
tion Opportunity's study of college migration found that New York loses
13,072 more graduates each year than it attracts.
By not taxing the first $250,000 or $150,000 respectively, a person
earns in their lifetime, it will make it easier for young people to be
able to accept and live on an entry-level salary. They will be better
able to payoff student loans, save for a house, buy a car and have more
discretionary income to spend. The more they spend in New York, the more
they help our economy.
 
PRIOR LEGISLATIVE HISTORY:
01/18/17: S.2882 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/03/18: S.2882 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/09/19: S.360 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/08/20: S.360 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/06/21: S.168 REFERRED TO BUDGET AND REVENUE
01/05/22: S.168 REFERRED TO BUDGET AND REVENUE
01/04/23: S.91R REFERRED TO BUDGET AND REVENUE
01/03/24: S.91R REFERRED TO BUDGET AND REVENUE
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning the first of January following the effective date of this act.

Statutes affected:
S231: 605 tax law, 605(a) tax law