Amends the college tuition credit; eliminates the credit for taxpayers whose adjusted gross income is over $15,000,000; sets a sliding scale.
Impact
The bill's impact on state laws is significant, aiming to reshape the financial landscape around higher education funding by modifying how and to whom tax credits are allocated. By instituting a cap on the income level for receiving the tax credit, the state seeks to redirect fiscal resources towards aiding lower and middle-income families in affording college tuition. This shift may not only enhance accessibility to higher education but could also lead to increased pressure on wealthier individuals to contribute to state revenues through more comprehensive taxation.
Summary
Bill S07906 proposes amendments to the tax law concerning the college tuition personal income tax credit. The primary aim of this bill is to remove the tax credit for taxpayers whose adjusted gross income exceeds $15,000,000 while establishing a sliding scale for eligible income. This change seeks to make the college tuition tax credit more equitable by targeting support for lower-income earners and effectively reducing the financial assistance provided to the wealthiest taxpayers in the state. The proposed amendment ensures that the tax credit remains significant for those earning below the stipulated income threshold, thereby encouraging educational pursuits among a larger demographic.
Contention
Notable points of contention surrounding S07906 include debates over fairness in tax policy and the elimination of benefits for high-income earners. Proponents argue that eliminating the credit for taxpayers above a certain income level is a necessary step to ensure that state resources are prioritized for those who need them the most. Conversely, opponents may contend that such measures could discourage higher earners from investing in education or could be perceived as punitive. The discourse in legislative sessions could also touch on how these changes may affect overall tax revenues and welfare programs aimed at educational funding.
Disregards any amount included in an individual taxpayer's federal adjusted gross income as a result of the federal child tax credit for purposes of calculating an individual taxpayer's federal income tax deduction.
Establishes a reduction of federal adjusted gross income, for state personal income tax purposes, for student loan interest payments made by taxpayers.
Establishes a tax credit for rent paid on the personal residence of certain taxpayers who lease the taxpayer's primary residence during the taxable year and who pay rent with respect to such residence in excess of thirty percent of such taxpayer's gross income for such taxable year whose income is less than fifty percent of the area median income.
Establishes a tax credit for rent paid on the personal residence of certain taxpayers who lease the taxpayer's primary residence during the taxable year and who pay rent with respect to such residence in excess of thirty percent of such taxpayer's gross income for such taxable year whose income is less than fifty percent of the area median income.
Provides for a working families tax credit; directs quarterly prepayment of the credit; provides for a sliding reduction in the credit for incomes which exceed a certain threshold.
Provides for a working families tax credit; directs quarterly prepayment of the credit; provides for a sliding reduction in the credit for incomes which exceed a certain threshold.