Creates a college preparation expense tax credit for up to three years per child/individual for up to $500 per year for qualified college preparation expenses.
Summary
This bill would create a new refundable? No—nonrefundable state personal income tax credit for New York resident taxpayers for certain college preparation expenses. The credit would be worth up to $500 per child per taxable year and could be claimed for up to three taxable years for the same individual, with an election required for each eligible child. The bill is framed as the “college preparation tax credit act” and is intended to offset costs associated with preparing for postsecondary education.
The bill defines qualified expenses broadly to include fees for AP and International Baccalaureate exams, SAT, ACT, and SAT subject tests, tutoring and prep classes for those exams, application fees for admission to an eligible postsecondary institution, and other similar expenses that the tax commissioner may later authorize by regulation. It also coordinates the credit with dependent-related tax treatment so that if another taxpayer claims a deduction for the individual, the credit and expense attribution shift accordingly. The bill would take effect immediately upon enactment.
Impact
The bill would amend section 606 of the Tax Law by adding a new subsection creating a college preparation expense credit for resident taxpayers. It would reduce state income tax liability for eligible families who pay for standardized testing, test preparation, and college application costs, and it would give the Department of Taxation and Finance authority to define additional similar qualifying expenses by regulation. The measure would affect resident taxpayers with school-age children or dependents preparing for college, while also limiting repeated use of the credit to three prior taxable years per child.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the bill appears to be presented as a targeted tax relief measure for families facing college admissions costs. The overall tone is supportive and policy-oriented, emphasizing affordability and access to higher education preparation. No recorded opposition or amendments are shown in the supplied context.
Contention
The main potential points of contention are the fiscal cost to the state, the fairness of providing a tax benefit that primarily assists families able to pay upfront for exams and application fees, and the administrative complexity of tracking eligibility across multiple years and dependents. Another possible issue is the breadth of the commissioner’s regulatory authority to define additional qualifying expenses, which could raise concerns about scope and implementation. No specific opposing stakeholders or formal objections are identified in the provided record.
Income tax; tax credit for certain expenses incurred by taxpayers that sell new construction homes to certain individuals for up to a certain price; provide