NY A03983

Establishes a tax credit for taxpayers who pay tuition to higher education institutions on behalf of employees who agree to work for the taxpayer for a specified number of years under a written agreement.

Credit amount equals 25 percent of tuition paid per qualified individual, capped at $5,000 per year per individual; tuition includes enrollment fees and textbooks but excludes amounts covered by other scholarships, financial aid, or graduate degree programs.

Qualified individuals must not be spouses, children, or dependents of the taxpayer or any officer or employee of the taxpayer; written agreements must specify minimum salary, required employment duration, and parties' responsibilities if employment or degree completion fails.

Unused credits may be carried over to subsequent tax years if the credit exceeds the taxpayer's tax liability in a given year.

Applies to all taxable years commencing after January 1, 2008.