Bill > S07206

This bill amends the New York state education law to expand the definition of "eligible educational institution" for the state's college choice tuition savings program (commonly known as a 529 plan) to align with federal tax code definitions. Specifically, the bill removes language that previously limited eligible institutions to "higher education" and instead adopts the broader federal definition from Section 529(e)(5) of the Internal Revenue Code. This change means that 529 plan funds can now be used not only for college expenses but also for K-12 educational expenses and certain apprenticeship programs, as defined in Section 529(c)(8) of the tax code. By conforming to federal law, the bill provides New York state residents more flexibility in using their tax-advantaged tuition savings accounts, allowing them to support educational expenses from kindergarten through post-secondary education, including vocational training programs. The amendment takes effect immediately upon passage.

Education

https://www.nysenate.gov/legislation/bills/2025/S7206