Bill > S05993

This bill creates a new tax credit for employers who contribute to a college choice tuition savings account (called a "family tuition account") on behalf of their employees. The credit allows employers to receive a tax credit equal to the amount they contribute to an employee's family tuition account, with a maximum credit of $5,000 per employee. The tax credit applies to various types of state taxes, including corporate franchise tax, personal income tax, and tax on utilities. If the credit amount exceeds the taxpayer's tax liability for a given year, the excess can be treated as an overpayment and potentially refunded, though no interest will be paid on this amount. The bill also includes provisions for potential credit recapture, which means the credit could be taken back under certain circumstances. The tax credit is designed to encourage employers to help their employees save for higher education expenses by providing a financial incentive through the tax system. The bill will take effect immediately and apply to taxable years beginning on or after January 1st following its enactment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5993