BILL NUMBER: S7206
SPONSOR: LANZA
 
TITLE OF BILL:
An act to amend the education law, in relation to conforming the New
York state college choice tuition savings program to federal law relat-
ing to qualified tuition programs
 
PURPOSE:
Conforms the New York state college choice tuition savings program to
the federal qualified tuition program
 
SUMMARY OF PROVISIONS:
Section 695-b of the education law is amended to state that "Eligible
educational institution" shall mean an eligible institution as defined
in section 529(e)(5) of the Internal Revenue Code of 1986.
 
JUSTIFICATION:
This bill will conform the state 529 program to the newly enacted feder-
al tax law that allows people to use their 529 savings plan towards
eligible educational institutions. 529 plans are savings accounts that
are sponsored by state governments which help parents save for future
K-12 and college expenses. This bill will keep the state savings plan in
line with federal tax law, giving families the ability to better save
for future educational expenses. Unlike Coverdell education savings
programs, 529 plans have no age limit and have higher maximum contrib-
ution limits. Investing in these plans eads to a number of special tax
benefits.
 
LEGISLATIVE HISTORY:
2024: S.6000 - Referred to Higher Education
2023: S.6000 - Referred to Higher Education
2022: S.6097 - Referred to Higher Education
2021: S.6097 - Referred to Higher Education
2020: S.3174 - Referred to Higher Education/A.6700Referred to Higher Ed
2019: S.3174 - Referred to Higher Education/A.6700Referred to Higher Ed
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S7206: 695-b education law, 695-b(5) education law