BILL NUMBER: S7906
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the tax law, in relation to the college tuition personal
income tax credit
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would provide for a means test for the college tuition credit
and deduction for personal income tax filers making over one million
dollars
 
SUMMARY OF PROVISIONS:
Section One amends paragraph 4 of subsection (t) of section 606 of the
tax law to provide for the computation of the college tuition credit
deduction based on the amount of New York adjusted gross income
Section two provides for the effective date
 
JUSTIFICATION:
Currently, this tax credit subsidizes four percent of tuition, for a max
of $10,000 per student, paid by New York residents on behalf of them-
selves, spouses, or dependents to attend qualifying in-state or out-of-
state institutions of higher education (IHE).
Alternatively, PIT filers choosing to itemize may take the credit as an
itemized deduction instead. New York makes this credit or deduction
available for any accredited college, including schools in New York
charging more than $70,000 a year in tuition, no matter how much money
the filer earns, and regardless of whether or not the IHE is located in
New York State.
While a tax expenditure to make college more affordable is certainly a
worthy reform, the fact that this credit/deduction is not means-tested
means that we are footing the bill for the first $10,000 of tuition for
billionaire filers who can well afford it.
A means-tested approach to this subsidy would ensure that it targets
families most in need while providing the state room to invest in higher
education programs and initiatives that benefit all filers.
 
PRIOR LEGISLATIVE HISTORY:
None
 
FISCAL IMPLICATIONS:
TBD
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law

Statutes affected:
S7906: 606 tax law, 606(t) tax law