2 tax proposals would lower college costs

ALBANY -- Senate Republicans Tuesday proposed a package of tax credits and tax deductions intended to lower the cost of a college education for middle-class families.

"We want to allow students to make investments in their future," said Sen. Kenneth LaValle (R-Port Jefferson), chairman of the Senate committee on higher education.

Currently, state law allows a student or a dependent's parents to claim either a $400 tax credit or a $10,000 deduction for college tuition. The Senate Republican proposal would double those to an $800 tax credit or a $20,000 deduction.

Under the proposal, students would also be eligible for a $12,000 tax credit if they graduate from a public or private college in New York State in four years or less, remained in the state for four years after graduation and did voluntary community service.

The legislation, which is still being drafted, also would include a new subsidized loan program, would allow parents to prepay tuition at SUNY and CUNY, and would require colleges and universities to provide student loan debt information.

The tax credits and increased deduction would cost the state $5 million in fiscal 2013 and ramp up to $425.3 million when it takes full effect in fiscal 2018, according to projections provided by LaValle. Assemb. Deborah Glick (D-Manhattan), chairwoman of the Assembly committee on higher education, called the proposal's cost "outrageous."