A Commerce Clause Challenge to New York’s Tax Deduction for Investment in Its Own Tuition Savings Program

The Internal Revenue Code provides guidelines for states to create and maintain college tuition savings programs which offer federal tax benefits to investors. Several states have enacted tuition savings plans in accordance with these guidelines. In addition to the federal tax benefits allowed, New York offers a state tax deduction to New York residents who invest in its plan, the New York College Choice Tuition Savings Program. New York does not offer the deduction, however, to residents who invest in comparable programs offered by other states. The tax deduction thus creates an incentive for residents to invest in the in-state program and discriminates against interstate investment in the tuition programs offered by other states. This Note argues that the incentive created by the New York tax deduction violates the United States Constitution by discriminating against interstate commerce.