Last year’s Tax Cuts and Jobs Act included a little-known but important provision relating to Internal Revenue Code 529 plans. These plans—known as 529 plans—can be described as tax-advantaged plans that encourages parents to save money for their children’s future higher education costs. The Tax Cuts and Jobs Act provided that funds from 529 plans could also be used to pay tuition at private and religious elementary and secondary schools. NYCF supported this provision in the Tax Cuts and Jobs Act.
The problem is this: Without a corresponding change on the state level, New York’s parents cannot take advantage of the new federal law.
Bill S.7783-A-Golden is designed to correct this problem, enabling New York parents to use 529 plan funds to pay for primary and secondary school tuition. The bill passed the New York State Senate on May 7, 2018 by a margin of 46 to 16. Unfortunately, the bill was referred to the New York State Assembly Education Committee and languished there until the end of the legislative session.
New Yorkers for Constitutional Freedoms applauds the State Senate for passing Bill S.7783-A-Golden. However, we are disappointed in the Assembly’s failure to act on the bill. Given the astronomical cost of college education, it is difficult to understand why any legislative body would not support measures that encourage college savings. NYCF hopes that both houses will make it a priority to pass this bill next year.
CORRECTION: NYCF’s original commentary on Bill S.7783-A listed Sen. Tom O’Mara (R-Big Flats) as the bill’s prime sponsor. While Sen. O’Mara is a co-sponsor of the bill, the bill’s prime sponsor is Sen. Martin Golden (R-Brooklyn). We appreciate each senator’s support for this important legislation, and we regret the error.