Creates a tax credit for businesses that develop a "college to work" program, paying the tuition of individuals in exchange for the individual committing to work for the business after the individual's graduation from an institution of higher learning; provides the tax credit shall be for twenty-five percent of the individual's tuition expenses not to exceed five thousand dollars.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2382
SPONSOR: Angelino TITLE OF BILL:
An act to amend the tax law, in relation to establishing a credit for
developing a college to work program
PURPOSE OR GENERAL IDEA OF BILL:
This bill would create a tax credit for business owners who pay tuition
for an employee's college education in exchange for that individual's
commitment to work for a specified number of years, giving business
owners an additional way to attract qualified workers and assisting
individuals in achieving their dream of a college education.
SUMMARY OF PROVISIONS:
Section 210-b of the tax law is amended by adding a new subdivision 59
to create a tax credit for the college to work program. A taxpayer can
earn a 25 percent tax credit, or up to $5,000 annually, by paying the
college tuition for an individual in exchange for that person's commit-
ment to work for a specified number of years, pursuant to written agree-
ment. Tuition shall include tuition and fees for enrollment and attend-
ance and the cost of related textbooks but shall exclude any amounts
that have been paid or reimbursed by any other scholarships or financial
aid. Tuition shall not include costs associated with a post baccalau-
reate or other graduate degree. The taxpayer cannot claim the credit for
the tuition costs of a spouse, child or other dependent. The written
agreement shall be signed and dated by the taxpayer and the qualified
individual. Agreement provisions shall include, but not be limited to,
the minimum salary that the taxpayer will pay to the individual upon
completion of the degree, and the parties' respective responsibilities
in the event that 1) the taxpayer ceases operations or rescinds the
employment offer after the individual has completed the degree or 2) the
individual fails to complete the degree or to work for the taxpayer for
the agreed upon term. For the purposes of this credit, the term "insti-
tution of higher education" shall mean an institution recognized and
approved by the Regents, or any successor organization, of the Universi-
ty of the State of New York or accredited by a nationally recognized
agency, which grants of a postsecondary degree, certificate or diploma.
JUSTIFICATION:
College costs continue to rise, outpacing the rate of inflation. Indi-
viduals often incur enormous debt to earn a college education with no
guarantee of appropriate job placement after they have completed a post-
secondary degree. At the same time, employers are finding it increasing-
ly difficult to hire qualified workers to meet the evolving needs of
their business, and many workers are leaving New York State in search of
jobs that offer higher pay and better benefits. The college to work tax
credit will boost economic development efforts in New York State by
helping employers recruit qualified workers and enticing individuals to
remain in our state to take advantage of employer-paid tuition offers.
Employers will be better able to attract and retain qualified workers,
and individuals will be able to obtain a post-secondary education with-
out mortgaging their future and with guaranteed employment after gradu-
ation.
PRIOR LEGISLATIVE HISTORY:
None.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all taxable
years commencing after January 1, 2023.
STATE OF NEW YORK
________________________________________________________________________
2382
2023-2024 Regular Sessions
IN ASSEMBLY
January 26, 2023
___________
Introduced by M. of A. ANGELINO, BRABENEC, LEMONDES, MANKTELOW, McDO-
NOUGH, MILLER, MORINELLO, NORRIS, TAGUE -- read once and referred to
the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a credit for
developing a college to work program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210-B of the tax law is amended by adding a new
2 subdivision 59 to read as follows:
3 59. Credit for college to work program. (a) Allowance of credit. A
4 taxpayer shall be allowed a credit, to be computed as hereinafter
5 provided, against the tax imposed by this article, based upon its
6 payment of tuition to an institution of higher education on behalf of an
7 individual in exchange for the individual agreeing to work for the
8 taxpayer for a number of years, as set forth in a written agreement
9 between the taxpayer and the individual.
10 (b) Tuition. For the purposes of this credit, the term "tuition" shall
11 mean the tuition and fees paid for the enrollment and attendance of an
12 individual at an institution of higher education, as well as monies paid
13 for textbooks in connection with attendance at an institution of higher
14 education. Provided, however, any amounts which have been paid for or
15 reimbursed by any other scholarships or financial aid, or tuition
16 required for enrollment or attendance in a course of study leading to
17 the granting of a post baccalaureate or other graduate degree, shall be
18 excluded from the definition of "tuition".
19 (c) Institution of higher education. For the purposes of this credit,
20 the term "institution of higher education" shall mean any institution of
21 higher education, recognized and approved by the regents, or any succes-
22 sor organization, of the university of the state of New York or accred-
23 ited by a nationally recognized accrediting agency or association
24 accepted as such by the regents, or any successor organization, of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06468-01-3
A. 2382 2
1 university of the state of New York, which provides a course of study
2 leading to the granting of a post-secondary degree, certificate or
3 diploma.
4 (d) Qualified individual. For purposes of this credit, the term "qual-
5 ified individual" shall mean any individual who is not a spouse, child
6 or dependent of the taxpayer or any individual who is not a spouse,
7 child or dependent of any officer or employee of the taxpayer.
8 (e) Written agreement. For purposes of this credit, the term "written
9 agreement" shall mean a document signed and dated by both the taxpayer
10 and the qualified individual which contains provisions including but not
11 limited to the minimum salary which the taxpayer will pay to the quali-
12 fied individual upon completion of the individual's degree; the required
13 duration of employment upon completion of the individual's degree; and
14 the parties' respective responsibilities in the event that the taxpayer
15 ceases operations or later decides not to offer employment to the indi-
16 vidual upon completion of his/her degree or in the event that the quali-
17 fied individual fails to complete the degree or to work for the taxpayer
18 for the agreed upon term.
19 (f) Amount of credit. Notwithstanding the provisions of any other law,
20 a taxpayer which provides for the payment of an individual's tuition
21 under the college to work program established by this subdivision, shall
22 be allowed a credit against the tax imposed by this article, to the
23 extent of twenty-five percent of monies paid for each individual's
24 tuition, but such credit shall not exceed five thousand dollars for one
25 year for each such qualified individual.
26 (g) Carryover. The credit allowed under this subdivision for any taxa-
27 ble year shall not reduce the tax due for such year to less than the
28 amount prescribed in paragraph (d) of subdivision one of section two
29 hundred ten of this article. Provided, however, if the amount of credit
30 allowable under this subdivision for any taxable year reduces the tax to
31 such amount, any amount of credit not deductible in such taxable year
32 may be carried over to the following year or years, and may be deducted
33 from the taxpayer's tax for such year or years.
34 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
35 of the tax law is amended by adding a new clause (l) to read as follows:
36 (l) College to work programAmount of credit under
37 credit under subsection (s-1) subdivision fifty-nine
38 of section two hundred ten-B
39 § 3. Section 606 of the tax law is amended by adding a new subsection
40 (s-1) to read as follows:
41 (s-1) Credit for college to work program. (1) Allowance of credit. A
42 taxpayer shall be allowed a credit, to be computed as hereinafter
43 provided, against the tax imposed by this article, based upon such
44 taxpayer's payment of tuition to an institution of higher education on
45 behalf of an individual in exchange for the individual agreeing to work
46 for the taxpayer for a number of years, as set forth in a written agree-
47 ment between the taxpayer and the individual.
48 (2) Tuition. For the purposes of this credit, the term "tuition" shall
49 mean the tuition and fees paid for the enrollment and attendance of an
50 individual at an institution of higher education, as well as monies paid
51 for textbooks in connection with attendance at an institution of higher
52 education. Provided, however, any amounts which have been paid for or
53 reimbursed by any other scholarships or financial aid, or tuition
54 required for enrollment or attendance in a course of study leading to
A. 2382 3
1 the granting of a post baccalaureate or other graduate degree, shall be
2 excluded from the definition of "tuition".
3 (3) Institution of higher education. For the purposes of this credit,
4 the term "institution of higher education" shall mean any institution of
5 higher education, recognized and approved by the regents, or any succes-
6 sor organization, of the university of the state of New York or accred-
7 ited by a nationally recognized accrediting agency or association
8 accepted as such by the regents, or any successor organization, of the
9 university of the state of New York, which provides a course of study
10 leading to the granting of a post-secondary degree, certificate or
11 diploma.
12 (4) Qualified individual. For purposes of this credit, the term "qual-
13 ified individual" shall mean any individual who is not a spouse, child
14 or dependent of the taxpayer or any individual who is not a spouse,
15 child or dependent of any officer or employee of the taxpayer.
16 (5) Written agreement. For purposes of this credit, the term "written
17 agreement" shall mean a document signed and dated by both the taxpayer
18 and the qualified individual which contains provisions including but not
19 limited to the minimum salary which the taxpayer will pay to the quali-
20 fied individual upon completion of the individual's degree; the required
21 duration of employment upon completion of the individual's degree; and
22 the parties' respective responsibilities in the event that the taxpayer
23 ceases operations or later decides not to offer employment to the indi-
24 vidual upon completion of his/her degree or in the event that the quali-
25 fied individual fails to complete the degree or to work for the taxpayer
26 for the agreed upon term.
27 (6) Amount of credit. Notwithstanding the provisions of any other law,
28 a taxpayer who provides for the payment of an individual's tuition under
29 the college to work program established by this subsection, shall be
30 allowed a credit against the tax imposed by this article, to the extent
31 of twenty-five percent of monies paid for each individual's tuition, but
32 such credit shall not exceed five thousand dollars for one year for each
33 such qualified individual.
34 (7) Carryover. If the amount of credit allowable under this subsection
35 for any taxable year shall exceed the taxpayer's tax amount, any amount
36 of the excess may be carried over to the following year or years, and
37 may be deducted from the taxpayer's tax for such year or years.
38 § 4. This act shall take effect immediately and shall apply to all
39 taxable years commencing after January 1, 2023.
