Senator Charles J. Fuschillo, Jr. recently reminded Long Islanders that college tuition expenses are now deductible on their state income taxes. For the 2001 tax year, 25 percent of all undergraduate college tuition expenses (up to a total of $2,500) may be deducted from a taxpayer's gross income, regardless of income or college choice. In addition, taxpayers who do not itemize their state tax returns may claim a tax credit equal to 1 percent of their tuition expenses.

"As New Yorkers prepare to file their income tax forms, I want to remind everyone with college tuition expenses to take advantage of this new law," said Fuschillo. "By making college tuition tax deductible, we are helping make higher education more affordable and more accessible for New York State residents."

According to Fuschillo, New York State is the first state in the nation to make college tuition fully tax deductible (up to $10,000) in addition to expanding New York State's Tuition Assistance Program (TAP). When fully phased in, the tuition tax deduction is equal to 25 percent in the 2001 tax year, 50 percent in the 2002 tax year, 75 percent in the 2003 tax year and 100 percent in 2004.

Fuschillo added that this new law includes a phased-in tax credit for those taxpayers who do not itemize their state income taxes. As such, the tax credit equals 1 percent of college tuition expenses for the 2001 tax year, 2 percent for the current tax year, 3 percent for the 2003 tax year and 4 percent for 2004. Moreover, taxpayers with tuition expenses under $5,000 will receive a minimum credit of $200 when fully effective.

According to Fuschillo, family eligibility for the TAP program was also increased from $50,500 to $80,000. Beginning in the 2000-01 school year, College Bound also raised the maximum and minimum awards through a four-year phase-in process. In the past, the maximum TAP grant was $4,125 and the minimum $275. Currently, college freshmen and sophomores are eligible for the new $5,000 maximum. Juniors and seniors will be added in 2002-03 and 2003-04, respectively. This year, the minimum TAP award has been adjusted as follows:

* students with family incomes ranging between $50,000 and $60,000 may receive no less than $425;

* students with family incomes ranging between $60,000 and $70,000 may receive no less than $325; and

* students with family incomes ranging between $70,000 and $80,000 may receive no less than $275.

* beginning next year (2002-03), the minimum TAP grant for all eligible students will be $500.

"I urge residents to take advantage of this new college tuition tax deduction and check this eligibility for the expanded TAP program," Fuschillo said. "We must do everything we can to give New Yorkers the opportunities to receive a quality higher education."