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A 4131

Conforms the New York state college choice tuition savings program to the federal qualified tuition program

2025 Regular Session Introduced by Joe DeStefano and 2 co-sponsors

Bill A 4131 aligns New York's College Choice Tuition Savings Program with federal standards, enhancing tax benefits and flexibility for families saving for education.

REFERRED TO HIGHER EDUCATION
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Bill Summary · A 4131

Summary of Bill A 4131

Bill Overview

  • Bill Number: A 4131
  • Title: Conforms the New York State College Choice Tuition Savings Program to the Federal Qualified Tuition Program
  • Status: Referred to Higher Education
  • Introduced On: January 31, 2025
  • Classification: Bill

Purpose and Intent

The primary purpose of Bill A 4131 is to align New York State's College Choice Tuition Savings Program with the federal guidelines established for qualified tuition programs (often referred to as 529 plans). This alignment aims to enhance the effectiveness of the state program, making it more beneficial for families saving for higher education expenses.

Key Provisions

  • Conformity with Federal Standards: The bill seeks to amend existing state laws to ensure that the College Choice Tuition Savings Program meets the requirements set forth by the Internal Revenue Service (IRS) for qualified tuition programs. This includes:

    • Allowing tax-free withdrawals for qualified education expenses.
    • Expanding eligible expenses to include certain K-12 education costs, in addition to higher education expenses.

  • Increased Flexibility: By conforming to federal standards, the bill may provide greater flexibility for account holders regarding how and when they can use their savings.

  • Tax Benefits: The bill aims to enhance tax benefits for New York residents who participate in the program, potentially increasing participation rates and encouraging more families to save for education.

Who Would Be Affected

  • Families Saving for Education: The primary beneficiaries of this bill would be families in New York who are saving for their children's higher education or K-12 expenses through the College Choice Tuition Savings Program.

  • Educational Institutions: Colleges and universities in New York may see an increase in enrollment as families are incentivized to save more effectively for tuition costs.

  • State Revenue: The state may experience changes in tax revenue due to the adjustments in tax benefits associated with the program.

Procedural Aspects

  • Current Status: As of January 31, 2025, the bill has been referred to the Higher Education Committee for further consideration.

  • Related Legislation: This bill is related to several prior-session bills (S 7782, S 3174, S 6097, S 6000, A 9203) and has a companion bill (S 7206) that may address similar issues.

Conclusion

Bill A 4131 represents a significant step towards modernizing New York's College Choice Tuition Savings Program by aligning it with federal standards. If passed, it could provide enhanced benefits for families saving for education, ultimately supporting the goal of making higher education more accessible and affordable in New York State.

Compiled from official sources — confirm details with the bill’s official record.

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