S T A T E O F N E W Y O R K
________________________________________________________________________
5749
2009-2010 Regular Sessions
I N A S S E M B L Y
February 19, 2009
___________
Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing an income tax
credit for qualified elementary education, secondary education and
home instruction expenses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (qq) to read as follows:
3 (QQ) CREDIT FOR QUALIFIED ELEMENTARY EDUCATION, SECONDARY EDUCATION,
4 AND HOME INSTRUCTION EXPENSES. (1) FOR PURPOSES OF THIS SUBSECTION:
5 (A) "ELIGIBLE DEPENDENT" SHALL MEAN ANY INDIVIDUAL WHO IS A DEPENDENT
6 OF THE TAXPAYER WITH RESPECT TO WHOM AN EXEMPTION IS ALLOWED UNDER
7 SECTION ONE HUNDRED FIFTY-TWO OF THE INTERNAL REVENUE CODE.
8 (B) "QUALIFIED ELEMENTARY AND SECONDARY EDUCATIONAL INSTITUTIONS"
9 SHALL MEAN:
10 (I) ANY ELEMENTARY OR SECONDARY SCHOOL OF A PUBLIC SCHOOL DISTRICT
11 LOCATED IN THIS STATE HOWEVER CREATED; AND
12 (II) ANY NON-PROFIT ELEMENTARY OR SECONDARY SCHOOL IN THIS STATE WHICH
13 (I) PROVIDES INSTRUCTION IN ACCORDANCE WITH SECTION THIRTY-TWO HUNDRED
14 FOUR OF THE EDUCATION LAW, (II) IS ENTITLED TO TOTAL EXEMPTION FROM
15 FEDERAL TAXATION UNDER SECTION FIVE HUNDRED ONE (A) AND FIVE HUNDRED ONE
16 (C)(3) OF THE FEDERAL INTERNAL REVENUE CODE, (III) HAS NOT BEEN FOUND IN
17 VIOLATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF NINETEEN HUNDRED
18 SIXTY-FOUR, 78 STAT. 252, 42 USC SECTION 2000 (D), AS IT MAY BE AMENDED
19 FROM TIME TO TIME. THE COMMISSIONER OF EDUCATION SHALL FURNISH TO THE
20 DEPARTMENT BY FEBRUARY FIRST OF EACH YEAR, A CERTIFIED LIST OF NON-PUBL-
21 IC SCHOOLS WHICH COMPLY WITH ITEM (I) OF THIS CLAUSE FOR THE PRECEDING
22 CALENDAR YEAR AND SHALL PROVIDE SUCH OTHER ASSISTANCE WITH RESPECT TO
23 WHETHER NON-PUBLIC SCHOOLS SHOULD COME WITHIN SUCH ITEM (I) AS THE
24 DEPARTMENT MAY REQUIRE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08952-01-9
A. 5749 2
1 (C) "QUALIFIED TAXPAYER" SHALL MEAN A RESIDENT INDIVIDUAL OF THE
2 STATE, WHOSE ADJUSTED GROSS INCOME DOES NOT EXCEED THOSE LIMITS SET
3 FORTH IN PARAGRAPH TWO OF THIS SUBSECTION FOR THE TAXABLE YEAR AND WHO
4 IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE OR, IN THE
5 CASE OF A HUSBAND AND WIFE WHO FILE A JOINT RETURN OR WHO FILE A JOINT
6 FEDERAL RETURN BUT MUST DETERMINE THEIR NEW YORK TAXES SEPARATELY, THEIR
7 COMBINED ADJUSTED GROSS INCOME SHALL NOT EXCEED THOSE LIMITS SET FORTH
8 IN PARAGRAPH TWO OF THIS SUBSECTION FOR THE TAXABLE YEAR AND HAS QUALI-
9 FIED EDUCATION EXPENSES FOR THE TAXABLE YEAR.
10 (D) "HOME INSTRUCTION" SHALL MEAN INSTRUCTION PROVIDED BY A PARENT OR
11 LEGAL GUARDIAN IN A SETTING OTHER THAN A PUBLIC SCHOOL THAT IS SUBSTAN-
12 TIALLY EQUIVALENT TO THE INSTRUCTION GIVEN TO MINORS OF LIKE AGE AND
13 ATTAINMENTS AT THE PUBLIC SCHOOLS OF THE CITY OR DISTRICT WHERE THE
14 MINOR RESIDES SO AS TO COMPLY WITH SUBDIVISION TWO OF SECTION THIRTY-TWO
15 HUNDRED FOUR OF THE EDUCATION LAW.
16 (E) "FEES AND TUITION" SHALL MEAN FEES OR TUITION FOR INSTRUCTION FOR
17 ELIGIBLE DEPENDENTS FIRST ENROLLED IN KINDERGARTEN BEGINNING IN THE TWO
18 THOUSAND EIGHT -- TWO THOUSAND NINE SCHOOL YEAR AND FOR INSTRUCTION IN
19 THE SUCCESSIVE GRADES THEREAFTER.
20 (F) "QUALIFIED EDUCATION EXPENSES" SHALL MEAN:
21 (I) FEES OR TUITION FOR INSTRUCTION, INCLUDING TUTORING, ACADEMIC
22 ENRICHMENT OR ACADEMIC SUMMER CAMPS IN GRADE OR AGE APPROPRIATE CURRIC-
23 ULA THAT SUPPLEMENT CURRICULA AND INSTRUCTION AVAILABLE DURING THE REGU-
24 LAR SCHOOL YEAR, THAT ASSISTS A DEPENDENT TO IMPROVE KNOWLEDGE OF CORE
25 CURRICULUM AREAS OR TO EXPAND KNOWLEDGE AND SKILLS;
26 (II) EXPENSES FOR TEXTBOOKS, INCLUDING BOOKS AND OTHER INSTRUCTIONAL
27 MATERIALS AND EQUIPMENT USED IN QUALIFIED ELEMENTARY AND SECONDARY
28 INSTITUTIONS AND HOME INSTRUCTION. "TEXTBOOKS" DOES NOT INCLUDE BOOKS OR
29 MATERIALS FOR EXTRACURRICULAR ACTIVITIES INCLUDING SPORTING EVENTS,
30 MUSICAL OR DRAMATIC EVENTS, SPEECH ACTIVITIES, DRIVER'S EDUCATION, OR
31 SIMILAR PROGRAMS;
32 (III) EDUCATIONAL SOFTWARE THAT ASSISTS A DEPENDENT TO IMPROVE KNOW-
33 LEDGE OF CORE CURRICULUM AREAS OR TO EXPAND KNOWLEDGE AND SKILLS
34 PURCHASED FOR USE IN THE TAXPAYER'S HOME AND NOT USED IN A TRADE OR
35 BUSINESS REGARDLESS OF WHETHER SUCH SOFTWARE IS REQUIRED BY THE DEPEN-
36 DENT'S QUALIFIED ELEMENTARY OR SECONDARY INSTITUTION OR COURSE OF HOME
37 INSTRUCTION; AND
38 (IV) EXPENSES FOR SPECIAL EDUCATION EVALUATION SERVICES AND PROGRAMS.
39 (2) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX
40 IMPOSED BY THIS ARTICLE FOR QUALIFIED EDUCATIONAL EXPENSES OF DEPENDENTS
41 ATTENDING QUALIFIED ELEMENTARY AND SECONDARY EDUCATIONAL INSTITUTIONS OR
42 RECEIVING HOME INSTRUCTION, PROVIDED, HOWEVER, THAT THE AMOUNT OF SUCH
43 CREDIT SHALL NOT EXCEED THE TAX IMPOSED BY SECTION SIX HUNDRED ONE OF
44 THIS PART, FOR THE TAXABLE YEAR. IF THE CREDIT EXCEEDS THE TAX AS SO
45 REDUCED, THE TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A
46 CERTIFICATE OF THE COMMISSIONER, SHALL PAY TO THE TAXPAYER AS AN OVER-
47 PAYMENT, WITHOUT INTEREST, THE AMOUNT OF SUCH EXCESS. FOR EACH ELIGIBLE
48 DEPENDENT ATTENDING GRADES KINDERGARTEN THROUGH TWELVE AT A QUALIFIED
49 ELEMENTARY OR SECONDARY EDUCATIONAL INSTITUTION OR RECEIVING HOME
50 INSTRUCTION WHO INCURS QUALIFIED EDUCATIONAL EXPENSES PURSUANT TO THIS
51 SUBSECTION, THE MAXIMUM CREDIT SHALL NOT EXCEED THE AMOUNT DETERMINED IN
52 ACCORDANCE WITH THE FOLLOWING TABLES:
53 (A) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1, 2009:
54 IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
55 INCOME IS: DEPENDENT SHALL BE:
A. 5749 3
1 NOT OVER $39,999 $3,500
2 OVER $40,000 BUT NOT OVER $3,200
3 $59,999
4 OVER $60,000 BUT NOT OVER $2,900
5 $79,999
6 OVER $80,000 BUT NOT OVER $2,600
7 $99,999
8 (B) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPH
9 (A), FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1, 2010:
10 IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
11 INCOME IS: DEPENDENT SHALL BE:
12 OVER $100,000 BUT NOT OVER $2,300
13 $109,999
14 (C) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPHS
15 (A) AND (B), FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1, 2011:
16 IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
17 INCOME IS: DEPENDENT SHALL BE:
18 OVER $110,000 BUT NOT OVER $2,000
19 $119,999
20 (D) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPHS
21 (A), (B) AND (C) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1,
22 2012:
23 IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
24 INCOME IS: DEPENDENT SHALL BE:
25 OVER $120,000 BUT NOT OVER $1,700
26 $129,999
27 (E) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPHS
28 (A), (B), (C) AND (D) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY
29 1, 2013:
30 IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
31 INCOME IS: DEPENDENT SHALL BE:
32 OVER $130,000 BUT NOT OVER $1,400
33 $139,999
34 (F) IN ADDITION TO THE MAXIMUM CREDIT PROVIDED FOR IN SUBPARAGRAPHS
35 (A), (B), (C), (D) AND (E) FOR TAXABLE YEARS BEGINNING ON AND AFTER
36 JANUARY 1, 2014:
37 IF ADJUSTED GROSS THE MAXIMUM CREDIT PER
38 INCOME IS: DEPENDENT SHALL BE:
39 OVER $140,000 BUT NOT OVER $1,100
40 $149,999
41 (3) SUCH CREDIT SHALL BE CLEARLY SPECIFIED AND A LINE ENTITLED "QUALI-
42 FIED EDUCATION EXPENSE CREDIT" SHALL BE PROVIDED ON RETURNS REQUIRED
43 PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE.
44 (4) IF A TAXPAYER'S DEPENDENT CHANGES HIS OR HER STATUS DURING A TAXA-
45 BLE YEAR, SO AS TO BE AN ELIGIBLE DEPENDENT FOR LESS THAN THE FULL TAXA-
A. 5749 4
1 BLE YEAR, OR ATTENDS AN INSTITUTION OTHER THAN A QUALIFIED ELEMENTARY OR
2 SECONDARY EDUCATIONAL INSTITUTION OR DOES NOT RECEIVE HOME INSTRUCTION
3 FOR SOME PORTION OF SUCH TAXABLE YEAR, THEN THE CREDIT ALLOWED PURSUANT
4 TO THIS SUBSECTION SHALL BE COMPUTED IN SUCH MANNER AS THE DEPARTMENT
5 MAY, BY REGULATION, PRESCRIBE IN ORDER TO PROPERLY REFLECT THE CREDIT OR
6 PORTION THEREOF ATTRIBUTABLE TO SUCH TAXABLE YEAR.
7 S 2. This act shall take effect immediately and shall apply to taxable
8 years beginning on or after January 1, 2009.