BILL NUMBER: S388
SPONSOR: PALUMBO
 
TITLE OF BILL:
An act to amend the education law, the tax law, the state finance law
and the civil practice law and rules, in relation to requiring the New
York state college choice tuition savings program to also apply to
elementary and secondary schools
 
PURPOSE:
To require the New York state college choice tuition savings program to
also apply to elementary and secondary schools.
 
SUMMARY OF PROVISIONS:
Sections 1 through 9 establish the "New York state (college choice)
tuition savings program", and amends the education law, the tax law, the
state finance law and the civil practice law and rules to include
elementary and secondary schools in the "New York (college choice)
tuition savings program".
Section 10 provides the effective date.
 
JUSTIFICATION:
Tuition costs continue to rise from the elementary to collegiate level.
New York's expansion of federal 529 saving plans enable families to
invest in their child's future education, providing tax-free withdrawals
and deductible contributions to these accounts. With the passage of the
2017 Tax Cut and Jobs Act, the federal government expanded the use of
the 529 saving account to include elementary and secondary school
expenses. As hardworking New Yorkers plan for their children to attend
public and private elementary secondary schools and colleges throughout
the state, the rising costs continue to strain their ability to afford
these institutions. Expanding 529 saving plans to elementary and
secondary education would affirm New York State's commitment to families
seeking a choice in their child's future education.
 
LEGISLATIVE HISTORY:
2024 S.4798/A.2427; 2022 S.4505/A.6795; 2020 A.8192; 2015 A.10115.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2025.

Statutes affected:
S388: 695 education law, 695-a education law, 695-a(2) education law, 695-b education law, 695-b(7) education law, 695-d education law, 695-d(2) education law, 658 tax law, 658(d) tax law, 5205 civil practice law