Bill > S07906

This bill amends the New York state tax law regarding the college tuition personal income tax credit by establishing a sliding scale of credit eligibility based on a taxpayer's adjusted gross income (AGI). Under the new provisions, the credit percentage will depend on the taxpayer's income level, with different thresholds for unmarried individuals, heads of households, and married couples filing jointly. For unmarried individuals and heads of households, the full 100% credit applies to those with AGI not over $1,000,000, decreasing to 50% for incomes between $1,000,000 and $5,000,000, 25% for incomes between $5,000,000 and $10,000,000, and 0% for incomes over $10,000,000. For married couples filing jointly, the thresholds are slightly higher: full credit for AGI not over $1,500,000, 50% for incomes between $1,500,000 and $7,500,000, 25% for incomes between $7,500,000 and $15,000,000, and 0% for incomes over $15,000,000. The credit calculation remains based on allowable college tuition expenses, with the percentage applied to either the lesser of $200 or actual expenses (for expenses under $5,000) or to 4% of expenses (for expenses $5,000 or more). The bill will take effect on the first day of January following its enactment and will apply to taxable years beginning on or after that date.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S7906