SECTION 1. Section 6 of chapter 62 of the General Laws is hereby amended by adding the following subsection:-
(t)(1) As used in this subsection, the following words shall have the following meaning:-
“Allowable college tuition expenses”, the amount of qualified college tuition expenses of eligible students paid by the taxpayer during the taxable year, limited to $20,000 for each such student.
“Eligible institution of higher education”, an institution which: (a) is described in section 481 of the Higher Education Act of 1965, 20 U.S.C. section 1088, as in effect on the date of the enactment of this subsection; and (b) which is eligible to participate in a program under Title IV of such Act.
“Eligible student”, the taxpayer, the taxpayer's spouse and any dependent of the taxpayer who qualifies as a dependent for whom the taxpayer is allowed an exemption under this chapter and section 151 of the Code for the taxable year.
“Qualified college tuition expenses”, the tuition required for the enrollment or attendance of an eligible student at an eligible institution of higher education for each student; provided, however, that tuition payments made pursuant to the receipt of any scholarships or financial aid, or tuition required for enrollment or attendance in a course of study leading to the granting of a post baccalaureate or other graduate degree, shall be excluded from the definition of “qualified college tuition expenses”.
(2) A resident taxpayer may claim a credit against the tax imposed by this chapter. The amount of the credit provided under this subsection shall be equal to the applicable percentage of the lesser of allowable college tuition expenses or $5,000. Such applicable percentage shall be: (a) 25 per cent for taxable years beginning in 2013; (b) 50 per cent for taxable years beginning in 2014; (c) 75 per cent for taxable years beginning in 2015; and (d) 100 per cent for taxable years beginning after 2016.
(3) The credit shall be available only if the taxpayer’s gross income does not exceed $90,000 for a single individual or head of a household and $180,000 for a married couple filing a joint return.
SECTION 2. The provisions of section 1 of this act shall be applicable to tax years commencing after December 31, 2012.
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