assembly Bill A1826B

Amended

Establishes the "education investment incentives act"

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Sponsor

CUSICK

Co-Sponsors

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Multi-Sponsors

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO WAYS AND MEANS
  • 20 / Jun / 2013
    • AMEND (T) AND RECOMMIT TO WAYS AND MEANS
  • 20 / Jun / 2013
    • PRINT NUMBER 1826A
  • 20 / Jun / 2013
    • AMEND AND RECOMMIT TO WAYS AND MEANS
  • 20 / Jun / 2013
    • PRINT NUMBER 1826B
  • 08 / Jan / 2014
    • REFERRED TO WAYS AND MEANS
  • 25 / Feb / 2014
    • AMEND AND RECOMMIT TO WAYS AND MEANS
  • 25 / Feb / 2014
    • PRINT NUMBER 1826C
  • 25 / Mar / 2014
    • AMEND (T) AND RECOMMIT TO WAYS AND MEANS
  • 25 / Mar / 2014
    • PRINT NUMBER 1826D

Summary

Establishes the "education investment incentives act"; provides credits against income and corporate franchise tax for various qualified education investments including scholarships, education funds and instructional materials.

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Bill Details

Versions:
A1826
A1826A
A1826B
A1826C
A1826D
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §39, amd §§208, 210, 606, 615, 1456, 1453, 1503 & 1511, Tax L; add Art 25 §§1209 - 1217, add §1503-a, Ed L
Versions Introduced in Previous Legislative Cycles:
2011-2012: A5081C
2009-2010: A10862
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1826--B

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  CUSICK, THIELE, MARKEY, MALLIOTAKIS, LAVINE,
  ESPINAL, ROBINSON, GOLDFEDER, SIMANOWITZ,  SCARBOROUGH,  BROOK-KRASNY,
  BENEDETTO, CAMARA, KEARNS, STEVENSON, HEVESI, PERRY, BARRETT, BORELLI,
  CURRAN,  WEPRIN,  ROZIC,  BRINDISI,  CLARK, RAMOS, SKOUFIS, RODRIGUEZ,
  RUSSELL, DenDEKKER,  ZEBROWSKI,  GJONAJ,  MILLER,  SKARTADOS,  MOSLEY,
  GANTT  --  Multi-Sponsored  by -- M. of A. ARROYO, AUBRY, BLANKENBUSH,
  BOYLAND, BRAUNSTEIN, BUTLER, COLTON,  COOK,  CORWIN,  CRESPO,  CROUCH,
  CYMBROWITZ, DIPIETRO, ENGLEBRIGHT, FINCH, FITZPATRICK, FRIEND, GABRYS-
  ZAK,  GARBARINO,  GIBSON,  GIGLIO,  GOODELL,  GRAF,  HAWLEY,  HEASTIE,
  HENNESSEY, HIKIND, HOOPER, JACOBS, JORDAN,  KATZ,  KIM,  KOLB,  LALOR,
  LENTOL,   P. LOPEZ,   LUPARDO,  MAGEE,  MAISEL,  McDONALD,  McDONOUGH,
  McLAUGHLIN, MOYA, NOJAY, OAKS, ORTIZ, OTIS, PALMESANO, PEOPLES-STOKES,
  PRETLOW, RA, REILICH, RIVERA, ROSA, SCHIMEL,  SCHIMMINGER,  SEPULVEDA,
  SIMOTAS,  SOLAGES, STEC, SWEENEY, TENNEY, TITONE, TITUS, WALTER, WEIN-
  STEIN, WEISENBERG, WRIGHT -- read once and referred to  the  Committee
  on  Ways  and  Means  --  committee  discharged, bill amended, ordered
  reprinted as amended  and  recommitted  to  said  committee  --  again
  reported  from  said  committee  with amendments, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the tax law and the education law, in relation to enact-
  ing the "education investment tax credit act"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Short  title. This act shall be known and may be cited as
the "education investment tax credit act".
  S 2. Legislative findings and intent. The legislature hereby finds and
declares that:
  a. The education of the children of this state is one of  the  founda-
tions  of  a  strong  society  that  requires an academically robust and
financially sound school system, both public and non-public;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00834-09-3

A. 1826--B                          2

  b. At a time when the state is considering ways of  reducing  the  tax
burden  for New York state residents and educators are seeking an expan-
sion of financial resources, charitable giving for educational  purposes
should be encouraged;
  c.  Permitting  public education entities such as school districts and
individual public schools to accept and receive voluntary cash  contrib-
utions will be beneficial to taxpayers and educators;
  d.  Encouraging voluntary support for education, without prejudice for
or against any state-sanctioned  educational  enterprise,  promotes  the
state's interest in providing the highest quality education to all chil-
dren in the state;
  e.  The  tax credit provided in this act is merely one of many credits
available to New York taxpayers;
  f. The intended beneficiaries of the tax credits provided in this  act
are  the  students who attend public schools, students who further their
educations  using  tuition  scholarships  from  educational  scholarship
organizations,  and  teachers who purchase with personal funds to supply
their students and classrooms, and who  seek  charitable  donations  for
classroom projects and initiatives;
  g.  Permitting  educators to claim a credit for the purchase of class-
room instructional materials and supplies will insure a wider availabil-
ity of such materials and supplies for all students.
  S 3.  The tax law is amended by adding a new section  39  to  read  as
follows:
  S  39.  EDUCATION  INVESTMENT  TAX  CREDIT.   (A) DEFINITIONS. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
MEANINGS:
  1.  "AUTHORIZED  CONTRIBUTION"  MEANS  THE CONTRIBUTION AMOUNT THAT IS
LISTED ON THE  CONTRIBUTION  AUTHORIZATION  CERTIFICATE  ISSUED  TO  THE
TAXPAYER.
  2.  "CONTRIBUTION"  MEANS  A  DONATION PAID BY CASH, CHECK, ELECTRONIC
FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD THAT IS MADE BY  THE  TAXPAYER
DURING THE TAXABLE YEAR.
  3.  "EDUCATIONAL  PROGRAM"  MEANS  AN ACADEMIC OR SIMILAR PROGRAM OF A
PUBLIC SCHOOL THAT ENHANCES THE CURRICULUM OR ACADEMIC  PROGRAM  OF  THE
PUBLIC  SCHOOL,  OR  PROVIDES  A  PRE-KINDERGARTEN PROGRAM TO THE PUBLIC
SCHOOL. FOR PURPOSES OF THIS  DEFINITION,  THE  INSTRUCTION,  MATERIALS,
PROGRAMS  AND  OTHER  ACTIVITIES  OFFERED  BY  OR THROUGH AN EDUCATIONAL
PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING FEATURES: (I)
INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMI-
LY AND CONSUMER SCIENCES; LITERARY, PERFORMING AND  VISUAL  ARTS;  MATH-
EMATICS,  SOCIAL  STUDIES,  TECHNOLOGY  AND SCIENTIFIC ACHIEVEMENT; (II)
INSTRUCTION OR PROGRAMMING  TO  MEET  THE  EDUCATION  NEEDS  OF  AT-RISK
STUDENTS  OR  STUDENTS  WITH  DISABILITIES,  INCLUDING TUTORING OR COUN-
SELING; (III) INSTRUCTION OR PROGRAMMING BEFORE OR AFTER  PUBLIC  SCHOOL
HOURS, OR ON WEEKENDS THAT IMPROVES STUDENT ACADEMIC ACHIEVEMENT INCLUD-
ING  PREPARATION FOR COLLEGE OR A CAREER; OR (IV) THE USE OF SPECIALIZED
INSTRUCTIONAL MATERIALS, INSTRUCTORS OR INSTRUCTION NOT  PROVIDED  BY  A
PUBLIC SCHOOL.
  4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
TY  THAT (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II)  USES
AT  LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING
THE LAST MONTH OF THE IMMEDIATELY PRECEDING CALENDAR YEAR AND THE  FIRST
ELEVEN  MONTHS  OF  THE  CALENDAR  YEAR AND ANY INCOME DERIVED FROM SUCH
QUALIFIED CONTRIBUTIONS  DURING  SUCH  MONTHS  FOR  SCHOLARSHIPS,  (III)

A. 1826--B                          3

PROVIDES  SCHOLARSHIPS  WITHOUT  LIMITING  AVAILABILITY TO ONLY ELIGIBLE
PUPILS OF ONE  QUALIFIED  SCHOOL,  (IV)  DEPOSITS  AND  HOLDS  QUALIFIED
CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT  THAT  IS  SEPARATE  FROM  THE ORGANIZATION'S OPERATING OR OTHER
FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR  INCOME  ARE  WITHDRAWN  FOR
USE,  AND  (V) IS APPROVED TO RECEIVE AUTHORIZED CONTRIBUTIONS AND ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
LAW.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO IS (I) A RESIDENT OF THIS STATE,
(II) OF SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF  SECTION  THIR-
TY-TWO  HUNDRED  TWO OF THE EDUCATION LAW OR WHO IS FOUR YEARS OF AGE ON
OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH SUCH CHILD IS ENROLLED  IN
A  PRE-KINDERGARTEN  PROGRAM,  AND (III) ATTENDS OR IS ABOUT TO ATTEND A
QUALIFIED SCHOOL.
  6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH  (I)  IS
EXEMPT  FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) IS  ESTABLISHED  FOR
THE  PURPOSE OF SUPPORTING AT LEAST ONE PUBLIC SCHOOL OR A PUBLIC SCHOOL
DISTRICT LOCATED IN THIS STATE, (III) USES AT LEAST  NINETY  PERCENT  OF
THE  QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE IMME-
DIATELY PRECEDING CALENDAR YEAR AND  THE  FIRST  ELEVEN  MONTHS  OF  THE
CALENDAR  YEAR  AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS
DURING SUCH MONTHS TO SUPPORT THE PUBLIC SCHOOL  OR  SCHOOLS  OR  PUBLIC
SCHOOL  DISTRICT  OR  DISTRICTS  THAT  SUCH FUND HAS BEEN ESTABLISHED TO
SUPPORT, (IV) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY  INCOME
DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM
THE  FUND'S  OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS
OR INCOME ARE WITHDRAWN FOR USE, AND (V) IS APPROVED TO RECEIVE  AUTHOR-
IZED CONTRIBUTIONS AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE
TWENTY-FIVE OF THE EDUCATION LAW.
  7.  "NON-PUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM OR ELEMENTARY OR SECONDARY SECTARIAN OR NONSECTARIAN  SCHOOL  IN
THIS STATE, OTHER THAN A PUBLIC SCHOOL, THAT PROVIDES INSTRUCTION AT ONE
OR  MORE LOCATIONS TO ELIGIBLE PUPILS IN ACCORDANCE WITH SUBDIVISION TWO
OF SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW.
  8. "PUBLIC EDUCATION ENTITY" MEANS  (I)  A  SCHOOL  DISTRICT  IN  THIS
STATE, (II) A PUBLIC SCHOOL IN THIS STATE, OR (III) A SCHOOL IMPROVEMENT
ORGANIZATION,  PROVIDED  THAT  SUCH  SCHOOL  DISTRICT,  PUBLIC SCHOOL OR
SCHOOL IMPROVEMENT ORGANIZATION DEPOSITS AND  HOLDS  QUALIFIED  CONTRIB-
UTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT
THAT  IS  SEPARATE  FROM  THE  PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT'S
OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED  CONTRIBUTIONS  OR  INCOME
ARE  WITHDRAWN  FOR USE FROM OPERATING OR OTHER FUNDS AND IS APPROVED TO
RECEIVE AUTHORIZED  CONTRIBUTIONS  AND  ISSUE  CERTIFICATES  OF  RECEIPT
PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW.
  9.  "PUBLIC  SCHOOL"  MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE PURSUANT TO ARTICLE ELEVEN OF THE CONSTITUTION, BUT SHALL NOT
INCLUDE A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF  THE  EDUCA-
TION LAW.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A TAXPAYER TO A PUBLIC EDUCATION ENTITY, LOCAL EDUCATION FUND, OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION LISTED IN THE CONTRIBUTION AUTHORIZATION
CERTIFICATE ISSUED TO THE TAXPAYER FOR WHICH THE TAXPAYER HAS RECEIVED A
CERTIFICATE OF RECEIPT FROM SUCH ENTITY, FUND OR ORGANIZATION.

A. 1826--B                          4

  11.  "QUALIFIED  EDUCATOR"  MEANS  AN  INDIVIDUAL  WHO  IS  A TEACHER,
INSTRUCTOR, COUNSELOR, PRINCIPAL, OR AIDE IN A QUALIFIED SCHOOL  FOR  AT
LEAST NINE HUNDRED HOURS DURING A SCHOOL YEAR.
  12.  "QUALIFIED  SCHOOL"  MEANS  A  PUBLIC SCHOOL OR NON-PUBLIC SCHOOL
LOCATED IN THIS STATE.
  13. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP  OR  TUITION  GRANT
AWARDED  TO  AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL IN AN AMOUNT
NOT TO EXCEED THE TUITION NECESSARY TO  ATTEND  SUCH  SCHOOL;  PROVIDED,
HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL IN A
DISTRICT OF WHICH SUCH PUPIL IS NOT A RESIDENT, THE AMOUNT OF THE EDUCA-
TIONAL  SCHOLARSHIP  OR TUITION GRANT AWARDED MAY NOT EXCEED THE TUITION
CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION FOUR
OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION LAW, BUT ONLY IF  THE
SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY
FOR SUCH TUITION.
  14.  "SCHOOL  IMPROVEMENT  ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY
WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH  THREE  OF  SUBSECTION
(C)  OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS  RECEIVED  DURING
THE  LAST MONTH OF THE IMMEDIATELY PRECEDING CALENDAR YEAR AND THE FIRST
ELEVEN MONTHS OF THE CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS DURING SUCH MONTHS TO  ASSIST  PUBLIC  SCHOOLS  OR  PUBLIC
SCHOOL DISTRICTS LOCATED IN THIS STATE IN THEIR PROVISION OF EDUCATIONAL
PROGRAMS,  EITHER  BY MAKING CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS
OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS  STATE  OR  PROVIDING  EDUCA-
TIONAL  PROGRAMS  TO, OR IN CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS
OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS  STATE,  (III)  DEPOSITS  AND
HOLDS  QUALIFIED  CONTRIBUTIONS  AND  ANY  INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS IN AN ACCOUNT THAT IS  SEPARATE  FROM  THE  ORGANIZATION'S
OPERATING  OR  OTHER  FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME
ARE WITHDRAWN FOR USE,  AND  (IV)  IS  APPROVED  TO  RECEIVE  AUTHORIZED
CONTRIBUTIONS  AND  ISSUE  CERTIFICATES  OF  RECEIPT PURSUANT TO ARTICLE
TWENTY-FIVE OF THE EDUCATION LAW. SUCH TERM INCLUDES A  PRE-KINDERGARTEN
PROGRAM  OR  NOT-FOR-PROFIT ENTITY THAT ALLOWS THE TAXPAYER TO CHOOSE TO
DONATE TO A PROGRAM, PROJECT OR INITIATIVE  IDENTIFIED  BY  A  QUALIFIED
EDUCATOR FOR USE IN A PUBLIC SCHOOL.
  (B)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE
NINE-A, TWENTY-TWO, THIRTY-TWO, OR THIRTY-THREE OF THIS CHAPTER SHALL BE
ALLOWED AN EDUCATION INVESTMENT TAX CREDIT AGAINST SUCH TAX, PURSUANT TO
THE PROVISIONS REFERENCED IN  SUBDIVISION  (M)  OF  THIS  SECTION,  WITH
RESPECT  TO  QUALIFIED  CONTRIBUTIONS FOR WHICH THE APPLICATION REQUIRE-
MENTS OF SUBDIVISION (F) AND THE CERTIFICATION REQUIREMENTS OF  SUBDIVI-
SIONS (G) AND (H) OF THIS SECTION HAVE BEEN MET; PROVIDED, HOWEVER, THAT
IF  THE  TAXPAYER  ELECTS  TO  CLAIM  AN  ITEMIZED DEDUCTION PURSUANT TO
SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER FOR CHARITABLE CONTRIBUTIONS
UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL  REVENUE  CODE,  OR  A
DEDUCTION  PURSUANT  TO  ARTICLES  NINE-A, THIRTY-TWO OR THIRTY-THREE OF
THIS CHAPTER FOR SUCH QUALIFIED CONTRIBUTIONS, THE TAXPAYER SHALL NOT BE
ALLOWED TO CLAIM BOTH AN EDUCATION INVESTMENT TAX CREDIT AND A DEDUCTION
FOR SUCH QUALIFIED CONTRIBUTIONS.   THE COMMISSIONER  SHALL  MAINTAIN  A
LIST  OF THE PUBLIC EDUCATION ENTITIES, LOCAL EDUCATION FUNDS AND EDUCA-
TIONAL SCHOLARSHIP ORGANIZATIONS THAT ARE AUTHORIZED  TO  ISSUE  CERTIF-
ICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW.
  (C)  AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL THE SUM OF
THE CREDIT COMPONENTS SPECIFIED IN PARAGRAPHS  ONE,  TWO  AND  THREE  OF
SUBDIVISION (D) OF THIS SECTION FOR THE TAXABLE YEAR; PROVIDED, HOWEVER,

A. 1826--B                          5

THAT  THE  AMOUNT OF CREDIT FOR QUALIFIED CONTRIBUTIONS SHALL NOT EXCEED
THE LESSER OF (I) THE SUM OF SUCH CREDIT COMPONENTS, OR (II) THE  CREDIT
LIMITATION  PRESCRIBED BY SUBDIVISIONS (I) AND (J) OF THIS SECTION. WHEN
A  QUALIFIED  CONTRIBUTION IS MADE BY A PARTNERSHIP, ANY DIRECT OR INDI-
RECT PARTNER IN SUCH PARTNERSHIP WHO OR WHICH IS TAXABLE  UNDER  ARTICLE
NINE-A,  TWENTY-TWO, THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL BE
A TAXPAYER UNDER THIS PARAGRAPH AND ALLOWED A  PRO  RATA  SHARE  OF  THE
CREDIT  AGAINST SUCH TAX. WHEN A QUALIFIED CONTRIBUTION IS MADE BY A NEW
YORK S CORPORATION, ANY SHAREHOLDER IN SUCH NEW YORK S  CORPORATION  WHO
IS  TAXABLE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL BE A TAXPAYER
UNDER THIS PARAGRAPH AND ALLOWED A PRO RATA SHARE OF THE CREDIT  AGAINST
SUCH TAX.
  (D)  CREDIT  COMPONENTS.  1. PUBLIC EDUCATION ENTITY CREDIT COMPONENT.
THE PUBLIC EDUCATION ENTITY CREDIT COMPONENT SHALL EQUAL THE SUM OF  THE
QUALIFIED CONTRIBUTIONS MADE TO A PUBLIC EDUCATION ENTITY OR ENTITIES BY
THE  TAXPAYER  DURING  THE TAXABLE YEAR, AS LISTED ON THE CERTIFICATE OR
CERTIFICATES OF RECEIPT PROVIDED TO THE TAXPAYER, FOR WHICH THE TAXPAYER
HAS RECEIVED A CONTRIBUTION AUTHORIZATION CERTIFICATE; PROVIDED,  HOWEV-
ER,  THAT  A  TAXPAYER  SHALL  NOT  BE  ALLOWED CREDIT FOR ANY QUALIFIED
CONTRIBUTIONS IF THE  TAXPAYER  DESIGNATES  THE  CONTRIBUTIONS  FOR  THE
DIRECT BENEFIT OF ANY PARTICULAR STUDENT; AND, PROVIDED FURTHER THAT THE
TAXPAYER  SHALL  NOT  BE  ALLOWED CREDIT FOR QUALIFIED CONTRIBUTIONS FOR
WHICH THE TAXPAYER CLAIMED  A  FEDERAL  ITEMIZED  DEDUCTION  UNLESS  THE
TAXPAYER  ADDS  BACK  THE  AMOUNT  OF THE ITEMIZED DEDUCTION PURSUANT TO
SECTION  TWO  HUNDRED  EIGHT,  SIX  HUNDRED  TWELVE,  FOURTEEN   HUNDRED
FIFTY-THREE OR FIFTEEN HUNDRED THREE OF THIS CHAPTER.
  2.  LOCAL  EDUCATION  FUND  CREDIT COMPONENT. THE LOCAL EDUCATION FUND
CREDIT COMPONENT SHALL EQUAL THE SUM OF THE QUALIFIED CONTRIBUTIONS MADE
TO A LOCAL EDUCATION FUND OR FUNDS BY THE TAXPAYER  DURING  THE  TAXABLE
YEAR,  AS  LISTED ON THE CERTIFICATE OR CERTIFICATES OF RECEIPT PROVIDED
TO THE TAXPAYER, FOR WHICH THE  TAXPAYER  HAS  RECEIVED  A  CONTRIBUTION
AUTHORIZATION  CERTIFICATE; PROVIDED, HOWEVER, THAT A TAXPAYER SHALL NOT
BE ALLOWED CREDIT FOR ANY QUALIFIED CONTRIBUTIONS IF THE TAXPAYER DESIG-
NATES THE  CONTRIBUTIONS  FOR  THE  DIRECT  BENEFIT  OF  ANY  PARTICULAR
STUDENT;  AND,  PROVIDED  FURTHER THAT THE TAXPAYER SHALL NOT BE ALLOWED
CREDIT FOR QUALIFIED CONTRIBUTIONS FOR  WHICH  THE  TAXPAYER  CLAIMED  A
FEDERAL  ITEMIZED  DEDUCTION UNLESS THE TAXPAYER ADDS BACK THE AMOUNT OF
THE ITEMIZED DEDUCTION  PURSUANT  TO  SECTION  TWO  HUNDRED  EIGHT,  SIX
HUNDRED TWELVE, FOURTEEN HUNDRED FIFTY-THREE OR FIFTEEN HUNDRED THREE OF
THIS CHAPTER.
  3.  EDUCATIONAL  SCHOLARSHIP ORGANIZATION CREDIT COMPONENT. THE EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION CREDIT COMPONENT SHALL  BE  THE  SUM  OF
QUALIFIED  CONTRIBUTIONS MADE TO AN EDUCATIONAL SCHOLARSHIP ORGANIZATION
OR ORGANIZATIONS BY THE TAXPAYER DURING THE TAXABLE YEAR, AS  LISTED  ON
THE CERTIFICATE OR CERTIFICATES OF RECEIPT PROVIDED TO THE TAXPAYER, FOR
WHICH  THE  TAXPAYER  HAS  RECEIVED A CONTRIBUTION AUTHORIZATION CERTIF-
ICATE; PROVIDED, HOWEVER, THAT A TAXPAYER SHALL NOT  BE  ALLOWED  CREDIT
FOR  ANY  QUALIFIED CONTRIBUTIONS THAT ARE FOR THE DIRECT BENEFIT OF ANY
PARTICULAR STUDENT; AND, PROVIDED FURTHER THAT THE TAXPAYER SHALL NOT BE
ALLOWED A CREDIT FOR QUALIFIED  CONTRIBUTIONS  FOR  WHICH  THE  TAXPAYER
CLAIMED  A  FEDERAL ITEMIZED DEDUCTION UNLESS THE TAXPAYER ADDS BACK THE
AMOUNT OF THE ITEMIZED DEDUCTION PURSUANT TO SECTION TWO HUNDRED  EIGHT,
SIX  HUNDRED  TWELVE,  FOURTEEN  HUNDRED  FIFTY-THREE OR FIFTEEN HUNDRED
THREE OF THIS CHAPTER.
  (E) CONTRIBUTION AUTHORIZATION CERTIFICATE;  REQUIREMENT.  A  TAXPAYER
SHALL  NOT BE ALLOWED A CREDIT PURSUANT TO THIS SECTION FOR ANY CONTRIB-

A. 1826--B                          6

UTION MADE BY THE TAXPAYER TO A PUBLIC EDUCATION ENTITY, LOCAL EDUCATION
FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT WAS MADE PRIOR TO THE
DEPARTMENT'S ISSUANCE OF A CONTRIBUTION  AUTHORIZATION  CERTIFICATE  FOR
SUCH  CONTRIBUTION.  A  TAXPAYER  MAY  BE  ISSUED  MULTIPLE CONTRIBUTION
AUTHORIZATION CERTIFICATES BY THE DEPARTMENT, PROVIDED THAT THE TAXPAYER
MAKES AN APPLICATION FOR EACH SUCH CERTIFICATE.
  (F) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING A CONTRIBUTION TO A  PUBLIC  EDUCATION  ENTITY,  LOCAL  EDUCATION
FUND,  OR EDUCATIONAL SCHOLARSHIP ORGANIZATION, THE TAXPAYER SHALL APPLY
FOR A CONTRIBUTION  AUTHORIZATION  CERTIFICATE  FOR  SUCH  CONTRIBUTION.
TAXPAYERS  THAT  WANT  TO  MAKE  MORE  THAN ONE CONTRIBUTION TO A PUBLIC
EDUCATION ENTITY,  LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL  SCHOLARSHIP
ORGANIZATION  OR  CONTRIBUTE  TO  MORE THAN ONE PUBLIC EDUCATION ENTITY,
LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION, MUST MAKE
A SEPARATE APPLICATION FOR EACH SUCH CONTRIBUTION AUTHORIZATION  CERTIF-
ICATE.  SUCH  APPLICATION  SHALL BE IN THE FORM AND MANNER PRESCRIBED BY
THE DEPARTMENT, PROVIDED THAT SUCH APPLICATION INCLUDES (I) THE  TAXPAY-
ER'S  NAME  AND ADDRESS, (II) THE NAME AND ADDRESS OF EACH PUBLIC EDUCA-
TION ENTITY, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP  ORGANIZA-
TION  THAT  WILL  RECEIVE  A  CONTRIBUTION  FROM THE TAXPAYER, (III) THE
AMOUNT THAT THE TAXPAYER WILL CONTRIBUTE TO SUCH ENTITY, FUND OR  ORGAN-
IZATION,  AND  (IV)  ANY  OTHER  INFORMATION THAT THE COMMISSIONER DEEMS
NECESSARY; PROVIDED, HOWEVER, THAT THE AGGREGATE AMOUNT  OF  CREDIT  FOR
WHICH A TAXPAYER MAY APPLY CANNOT EXCEED FIVE PERCENT OF ONE HALF OF THE
CREDIT  CAP SET FORTH IN SUBDIVISION (J) OF THIS SECTION. THE DEPARTMENT
MAY ALLOW TAXPAYERS TO MAKE MULTIPLE  APPLICATIONS  ON  THE  SAME  FORM,
PROVIDED  THAT  EACH APPLICATION SHALL BE TREATED AS A SEPARATE APPLICA-
TION.
  (G) CONTRIBUTION AUTHORIZATION CERTIFICATES. 1.  ISSUANCE  OF  CERTIF-
ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
ICATES IN TWO PHASES IN ACCORDANCE WITH THE CREDIT LIMITATIONS  AND  CAP
SET FORTH IN SUBDIVISIONS (I) AND (J) OF THIS SECTION. IN PHASE ONE, THE
APPLICATION  PROCESS  BEGINS ON THE FIRST DAY OF JANUARY AND ENDS ON THE
FOURTEENTH DAY OF JANUARY. DURING THIS APPLICATION  PERIOD  THE  COMMIS-
SIONER  SHALL  NOT ISSUE ANY CONTRIBUTION AUTHORIZATION CERTIFICATES. ON
THE FIFTEENTH DAY  OF  JANUARY,  THE  COMMISSIONER  SHALL  ISSUE  CREDIT
AUTHORIZATION  CERTIFICATES  FOR  APPLICATIONS RECEIVED DURING THE PHASE
ONE APPLICATION PERIOD ON A FIRST-COME, FIRST-SERVE  BASIS,  BASED  UPON
THE  DATE  THAT  THE DEPARTMENT RECEIVED THE CONTRIBUTION APPLICATION IN
ACCORDANCE WITH THE CREDIT LIMITATIONS AND CAP SET FORTH IN SUBDIVISIONS
(I) AND (J) OF THIS SECTION, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE
CONTRIBUTIONS FOR WHICH APPLICATIONS HAVE BEEN FILED  DURING  THE  PHASE
ONE  APPLICATION  PERIOD  EXCEEDS  THE CREDIT GAP FOR QUALIFIED CONTRIB-
UTIONS AVAILABLE IN ACCORDANCE WITH THE CREDIT LIMITATIONS AND  CAP  SET
FORTH  IN  SUBDIVISIONS  (I)  AND  (J)  OF  THIS SECTION, THE AUTHORIZED
CONTRIBUTION AMOUNT LISTED IN EACH  CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATE  SHALL  EQUAL THE PRO-RATA SHARE OF THE AVAILABLE CREDIT. IN PHASE
TWO, THE APPLICATION PROCESS BEGINS ON THE FIFTEENTH DAY OF JANUARY  AND
ENDS  ON THE THIRTY-FIRST DAY OF DECEMBER.  DURING THIS PHASE TWO APPLI-
CATION PERIOD, THE COMMISSIONER SHALL ISSUE  CONTRIBUTION  AUTHORIZATION
CERTIFICATES  ON  A  FIRST-COME,  FIRST-SERVE BASIS, BASED UPON THE DATE
THAT THE DEPARTMENT RECEIVED  THE  CONTRIBUTOR'S  APPLICATION  FOR  SUCH
CONTRIBUTION  AUTHORIZATION  CERTIFICATE;  PROVIDED, HOWEVER, THAT IF ON
ANY DAY THE DEPARTMENT RECEIVES APPLICATIONS  FOR  WHICH  THE  AGGREGATE
TOTAL OF CONTRIBUTIONS FOR WHICH APPLICATIONS HAVE BEEN MADE EXCEEDS THE
CREDIT CAP FOR QUALIFIED CONTRIBUTIONS AVAILABLE TO ALL TAXPAYERS AS SET

A. 1826--B                          7

FORTH  IN  SUBDIVISION  (J) OF THIS SECTION, THE AUTHORIZED CONTRIBUTION
AMOUNT LISTED IN EACH CONTRIBUTION AUTHORIZATION CERTIFICATE ON SUCH DAY
SHALL EQUAL THE PRO-RATA SHARE OF THE AVAILABLE CREDIT. FOR PURPOSES  OF
DETERMINING A TAXPAYER'S PRO-RATA SHARE OF AVAILABLE CREDIT, THE COMMIS-
SIONER  SHALL MULTIPLY THE AMOUNT OF AVAILABLE CREDIT BY A FRACTION, THE
NUMERATOR OF WHICH EQUALS THE AUTHORIZED CREDIT  AMOUNT  LISTED  ON  THE
TAXPAYER'S APPLICATION AND THE DENOMINATOR OF WHICH EQUALS THE AGGREGATE
AMOUNT OF AUTHORIZED CREDIT SOUGHT IN ALL OF THE AFFECTED APPLICATIONS.
  2.  CONTRIBUTION AUTHORIZATION CERTIFICATE LIMITS. A TAXPAYER'S AGGRE-
GATE AUTHORIZED CONTRIBUTION AMOUNT AS LISTED ON ONE OR MORE  AUTHORIZED
CONTRIBUTION  CERTIFICATES  ISSUED TO THE TAXPAYER, SHALL NOT EXCEED THE
LESSER OF (I) FIVE PERCENT OF ONE HALF OF THE CREDIT CAP  SET  FORTH  IN
SUBDIVISION  (J)  OF  THIS  SECTION  FOR  THE CALENDAR YEAR, OR (II) THE
AGGREGATE OF THE AMOUNTS LISTED ON THE TAXPAYER'S APPLICATIONS SUBMITTED
IN ACCORDANCE WITH SUBDIVISION (F) OF THIS SECTION.
  3. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH  CONTRIBUTION
AUTHORIZATION  CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE WAS
ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED  CONTRIBUTIONS  LISTED  IN
THE CERTIFICATE MUST BE MADE, WHICH SHALL BE SIXTY DAYS FROM THE DATE OF
THE  ISSUANCE OF CREDIT AUTHORIZATION CERTIFICATE, (III) THE FIRST TAXA-
BLE YEAR FOR WHICH CREDIT MAY BE CLAIMED BY THE TAXPAYER, (IV) THE TOTAL
AMOUNT OF AUTHORIZED CONTRIBUTIONS, (V) THE  NAME  AND  ADDRESS  OF  THE
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION, PUBLIC EDUCATION ENTITY OR LOCAL
EDUCATION FUND TO WHICH THE TAXPAYER MAY MAKE AN AUTHORIZED CONTRIBUTION
AND THE AMOUNT OF SUCH  AUTHORIZED  CONTRIBUTION,  AND  (VI)  ANY  OTHER
INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY. ISSUED CREDIT AUTHOR-
IZATION CERTIFICATES SHALL BE MAILED TO THE APPROPRIATE TAXPAYERS WITHIN
THREE BUSINESS DAYS OF THEIR ISSUANCE.
  4.  NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION AUTHORIZATION
CERTIFICATE. WITHIN FIFTEEN DAYS  OF  THE  ISSUANCE  OF  A  CONTRIBUTION
AUTHORIZATION CERTIFICATE, THE COMMISSIONER SHALL NOTIFY THE EDUCATIONAL
SCHOLARSHIP  ORGANIZATION,  PUBLIC  EDUCATION ENTITY, OR LOCAL EDUCATION
FUND OF THE ISSUANCE OF THE CONTRIBUTION  AUTHORIZATION  CERTIFICATE  TO
THE  TAXPAYER.  SUCH  NOTIFICATION SHALL INCLUDE (I) THE TAXPAYER'S NAME
AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS ISSUED, (III)  THE  DATE
BY  WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE NOTIFICATION MUST BE
CONTRIBUTED, (IV) THE AMOUNT OF THE AUTHORIZED CONTRIBUTION, AND (V) ANY
OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
  5. DISCLOSURE OF CREDIT AVAILABLE. THE COMMISSIONER SHALL MAINTAIN  ON
THE  DEPARTMENT'S  WEBSITE  A RUNNING TOTAL OF THE AMOUNT OF CREDITS FOR
WHICH TAXPAYERS MAY  MAKE  APPLICATION  FOR  CONTRIBUTION  AUTHORIZATION
CERTIFICATION. SUCH RUNNING TOTAL SHALL BE UPDATED ON A DAILY BASIS.
  (H) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL  SCHOLARSHIP ORGANIZATION SHALL
ISSUE A CERTIFICATE OF RECEIPT FOR ANY CONTRIBUTION MADE BY  A  TAXPAYER
UNLESS  SUCH  PUBLIC  EDUCATION  ENTITY, LOCAL EDUCATION FUND, OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION HAS BEEN APPROVED TO ISSUE  CERTIFICATES
OF  RECEIPT  PURSUANT  TO  ARTICLE  TWENTY-FIVE OF THE EDUCATION LAW. NO
PUBLIC EDUCATION ENTITY, LOCAL EDUCATION FUND, OR  EDUCATIONAL  SCHOLAR-
SHIP  ORGANIZATION  SHALL  ISSUE A CERTIFICATE OF RECEIPT FOR A CONTRIB-
UTION MADE BY A TAXPAYER UNLESS  SUCH  PUBLIC  EDUCATION  ENTITY,  LOCAL
EDUCATION  FUND,  OR  EDUCATIONAL  SCHOLARSHIP ORGANIZATION HAS RECEIVED
NOTICE FROM THE DEPARTMENT THAT THE DEPARTMENT ISSUED A CREDIT  AUTHORI-
ZATION CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION.
  2.  TIMELY  CONTRIBUTION.  IF  A  TAXPAYER MAKES A CONTRIBUTION TO THE
PUBLIC EDUCATION ENTITY, LOCAL EDUCATION FUND, OR  EDUCATIONAL  SCHOLAR-

A. 1826--B                          8

SHIP  ORGANIZATION  SET  FORTH  ON  THE CREDIT AUTHORIZATION CERTIFICATE
ISSUED TO THE TAXPAYER BY THE DEPARTMENT PRIOR TO THE DATE BY WHICH SUCH
AUTHORIZED CONTRIBUTION SHALL BE MADE,  SUCH  PUBLIC  EDUCATION  ENTITY,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL,
WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION,  ISSUE  TO
THE  TAXPAYER  A WRITTEN CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT
THE AMOUNT OF THE QUALIFIED CONTRIBUTION LISTED ON SUCH  CERTIFICATE  OF
RECEIPT  SHALL  NOT  EXCEED  THE  LESSER  OF THE AUTHORIZED CONTRIBUTION
AMOUNT OR THE AMOUNT OF THE CONTRIBUTION; AND PROVIDED, FURTHER, THAT IF
THE TAXPAYER HAS BEEN ISSUED MORE THAN ONE CREDIT AUTHORIZATION  CERTIF-
ICATE  FOR  SUCH CONTRIBUTIONS, THE AMOUNT OF THE QUALIFIED CONTRIBUTION
LISTED ON SUCH CERTIFICATE OF RECEIPT SHALL NOT EXCEED THE LESSER OF THE
AGGREGATE OF THE AMOUNT OF THE AUTHORIZED CONTRIBUTIONS OR THE AMOUNT OF
CONTRIBUTIONS.
  3. UNTIMELY CONTRIBUTION. IF A TAXPAYER FAILS TO MAKE  A  CONTRIBUTION
TO  THE  PUBLIC  EDUCATION  ENTITY, LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION LISTED IN THE AUTHORIZED  CONTRIBUTION  CERTIF-
ICATE  ISSUED  TO  THE  TAXPAYER  IN  AN  AMOUNT EQUAL TO THE AUTHORIZED
CONTRIBUTION AMOUNT LISTED IN SUCH CERTIFICATE  PRIOR  TO  THE  DATE  BY
WHICH  SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE MADE, THE TAXPAYER
SHALL NOT BE ENTITLED TO A CERTIFICATE OF RECEIPT.
  4. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
STATE  (I)  THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION, (II)  THE
TAXPAYER'S  NAME AND ADDRESS, (III) THE DATE FOR EACH QUALIFIED CONTRIB-
UTION, (IV) THE AMOUNT OF EACH QUALIFIED  CONTRIBUTION,  (V)  THE  TOTAL
QUALIFIED  CONTRIBUTION  AMOUNT, AND (VI) ANY OTHER INFORMATION THAT THE
COMMISSIONER MAY DEEM NECESSARY.
  5. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
RECEIPT. UPON THE ISSUANCE OF A  CERTIFICATE  OF  RECEIPT,  THE  ISSUING
PUBLIC  EDUCATION  ENTITY, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION SHALL, WITHIN THIRTY DAYS OF ISSUING  THE  CERTIFICATE
OF  RECEIPT, PROVIDE THE DEPARTMENT WITH NOTIFICATION OF THE ISSUANCE OF
SUCH CERTIFICATE IN THE FORM AND MANNER PRESCRIBED  BY  THE  DEPARTMENT,
PROVIDED  THAT  SUCH  NOTIFICATION SHALL INCLUDE (I) THE TAXPAYER'S NAME
AND ADDRESS, (II) THE DATE OF THE ISSUANCE OF A CERTIFICATE OF  RECEIPT,
(III)  THE QUALIFIED CONTRIBUTION DATE OR DATES AND THE AMOUNTS CONTRIB-
UTED ON SUCH DATES, (IV) THE TOTAL QUALIFIED CONTRIBUTION LISTED ON SUCH
CERTIFICATE, (V) THE ISSUING PUBLIC EDUCATION  ENTITY,  LOCAL  EDUCATION
FUND  OR  EDUCATIONAL  SCHOLARSHIP  ORGANIZATION'S NAME AND ADDRESS, AND
(VI) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
  6. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF RECEIPT. EACH PUBLIC  EDUCATION  ENTITY,  LOCAL  EDUCATION  FUND,  OR
EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT RECEIVED NOTIFICATION FROM THE
DEPARTMENT  PURSUANT  TO  SUBDIVISION  (G) OF THIS SECTION REGARDING THE
ISSUANCE OF A  CONTRIBUTION  AUTHORIZATION  CERTIFICATE  TO  A  TAXPAYER
SHALL,  WITHIN  THIRTY  DAYS  OF THE EXPIRATION DATE FOR SUCH AUTHORIZED
CONTRIBUTION, PROVIDE NOTIFICATION TO THE DEPARTMENT FOR  EACH  TAXPAYER
THAT FAILED, IN WHOLE OR IN PART, TO MAKE THE AUTHORIZED CONTRIBUTION TO
SUCH PUBLIC EDUCATION ENTITY, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHO-
LARSHIP  ORGANIZATION  IN  THE FORM AND MANNER PRESCRIBED BY THE DEPART-
MENT; PROVIDED THAT SUCH NOTIFICATION SHALL INCLUDE (I)  THE  TAXPAYER'S
NAME  AND  ADDRESS,  (II)  THE  DATE THAT THE CONTRIBUTION AUTHORIZATION
CERTIFICATE WAS ISSUED, (III) THE  AUTHORIZED  CONTRIBUTION  AMOUNT  SET
FORTH ON SUCH CERTIFICATE, (IV) THE AMOUNT OF ANY QUALIFIED CONTRIBUTION
MADE  BY THE TAXPAYER, (V) THE AMOUNT OF THE AUTHORIZED CONTRIBUTION FOR

A. 1826--B                          9

WHICH THE TAXPAYER DID NOT MAKE A CONTRIBUTION, (VI) THE  PUBLIC  EDUCA-
TION  ENTITY, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION'S NAME AND ADDRESS,  AND  (VII)  ANY  OTHER  INFORMATION  THAT  THE
COMMISSIONER MAY DEEM NECESSARY.
  7.  ANY AMOUNTS FOR WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-
ISSUANCE OF  A  CERTIFICATE  OF  RECEIPT  SHALL  BE  ADDED  TO  THE  CAP
PRESCRIBED  IN  SUBDIVISION  (J)  OF  THIS  SECTION  FOR THE IMMEDIATELY
FOLLOWING YEAR.
  (I) CREDIT LIMITATION. THE MAXIMUM AMOUNT OF CREDIT  THAT  A  TAXPAYER
MAY  CLAIM  FOR A TAXABLE YEAR SHALL NOT EXCEED THE LESSER OF (I) SEVEN-
TY-FIVE PERCENT OF THE TAXPAYER'S TAX DUE FOR THE  TAXABLE  YEAR,  AFTER
APPLICATION  OF  ANY  OTHER ALLOWABLE CREDITS BY THE TAXPAYER, (II) FIVE
PERCENT OF ONE HALF OF THE CREDIT CAP SET FORTH IN  SUBDIVISION  (J)  OF
THIS SECTION FOR THE CALENDAR YEAR, OR (III) THE AGGREGATE AMOUNT OF THE
TAXPAYER'S  AUTHORIZED CONTRIBUTIONS THAT ARE LISTED ON THE CONTRIBUTION
AUTHORIZATION CERTIFICATES ISSUED TO THE TAXPAYER FOR THE  TAXABLE  YEAR
PLUS  ANY  AMOUNT  OF  CREDIT  CARRIED  FROM  A  PRECEDING TAXABLE YEAR.
PROVIDED, HOWEVER, THE COMMISSIONER SHALL DISALLOW THE  PORTION  OF  THE
CREDIT  EQUAL  TO THE AMOUNT SAVED FROM THE FEDERAL TAX LIABILITY OF THE
TAXPAYER FROM THE CHARITABLE CONTRIBUTION TO  A  QUALIFIED  ORGANIZATION
UNDER SECTION FIVE HUNDRED ONE (C)(3) OF THE INTERNAL REVENUE CODE.  ANY
CREDIT IN EXCESS OF THIS LIMITATION MAY BE CARRIED OVER TO THE FOLLOWING
YEAR  OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
OR YEARS.
  (J) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
AVAILABLE  TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS TO PUBLIC EDUCA-
TION ENTITIES, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGAN-
IZATIONS FOR CALENDAR YEAR TWO THOUSAND FOURTEEN SHALL  BE  TWO  HUNDRED
FIFTY  MILLION DOLLARS. IN CALENDAR YEAR TWO THOUSAND FIFTEEN AND THERE-
AFTER, THE MAXIMUM PERMITTED CREDITS UNDER THIS SECTION AVAILABLE TO ALL
TAXPAYERS SHALL BE THREE HUNDRED MILLION,  PLUS  ANY  AMOUNTS  THAT  ARE
REQUIRED  TO BE ADDED TO THE CAP PURSUANT TO THIS SUBDIVISION. THE MAXI-
MUM PERMITTED CREDITS UNDER THIS  SECTION  FOR  QUALIFIED  CONTRIBUTIONS
SHALL  BE ALLOCATED FIFTY PERCENT TO PUBLIC EDUCATION ENTITIES AND LOCAL
EDUCATION FUNDS AND FIFTY PERCENT TO EDUCATIONAL  SCHOLARSHIP  ORGANIZA-
TIONS.
  (K) OTHER REQUIREMENTS; MISCELLANEOUS. 1. RECORD KEEPING. EACH TAXPAY-
ER  SHALL,  FOR EACH TAXABLE YEAR FOR WHICH THE EDUCATION INVESTMENT TAX
CREDIT PROVIDED FOR UNDER THIS SECTION IS CLAIMED, MAINTAIN  RECORDS  OF
THE  FOLLOWING  INFORMATION: (I) CONTRIBUTION AUTHORIZATION CERTIFICATES
OBTAINED PURSUANT TO SUBDIVISION (G) OF THIS SECTION, AND  (II)  CERTIF-
ICATES OF RECEIPT OBTAINED PURSUANT TO SUBDIVISION (H) OF THIS SECTION.
  2.  REGULATIONS.  THE  COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE  IMPLEMEN-
TATION  OF  THIS SECTION. SUCH REGULATIONS SHALL CONSTRUE THE PROVISIONS
OF THIS SECTION IN SUCH A MANNER  AS  TO  ENCOURAGE  QUALIFIED  CONTRIB-
UTIONS, PROVIDED THAT SUCH REGULATIONS SHALL NOT IMPOSE ANY NEW REQUIRE-
MENT OR BURDEN ON THE EDUCATIONAL PROGRAM, INSTRUCTION, OR ACTIVITIES OF
A PUBLIC OR NON-PUBLIC SCHOOL.
  (L) REPORTS. 1. REPORTS TO THE COMMISSIONER. ON OR BEFORE THE LAST DAY
OF  FEBRUARY FOR EACH CALENDAR YEAR, EACH PUBLIC EDUCATION ENTITY, LOCAL
EDUCATION FUND, AND EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT ISSUED ONE
OR MORE CERTIFICATES OF RECEIPT SHALL REPORT  TO  THE  COMMISSIONER  THE
NUMBER OF SUCH CERTIFICATES ISSUED AND THE AGGREGATE AMOUNT OF QUALIFIED
CONTRIBUTIONS  MADE  TO  SUCH  ENTITY,  FUND, OR ORGANIZATION DURING THE
IMMEDIATELY PRECEDING CALENDAR YEAR.

A. 1826--B                         10

  2. JOINT ANNUAL REPORT. ON OR BEFORE THE LAST  DAY  OF  MAY  FOR  EACH
CALENDAR  YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND
THE COMMISSIONER OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN  REPORT  TO
THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY,  THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION INVEST-
MENT TAX CREDIT. SUCH REPORT SHALL CONTAIN STATISTICAL  INFORMATION,  BY
TAX  TYPE,  REGARDING THE NUMBER OF APPLICATIONS RECEIVED, THE NUMBER OF
CONTRIBUTION AUTHORIZATION  CERTIFICATES  ISSUED  FOR  CONTRIBUTIONS  TO
PUBLIC  EDUCATION  ENTITIES  AND  QUALIFIED  LOCAL  EDUCATION FUNDS, THE
NUMBER OF CONTRIBUTION AUTHORIZATION CERTIFICATES ISSUED FOR  AUTHORIZED
CONTRIBUTIONS  TO  QUALIFIED  SCHOLARSHIP  ORGANIZATIONS,  THE AGGREGATE
AMOUNT OF AUTHORIZED CONTRIBUTIONS FOR  PUBLIC  EDUCATION  ENTITIES  AND
QUALIFIED  LOCAL  EDUCATION  FUNDS,  THE  AGGREGATE AMOUNT OF AUTHORIZED
CONTRIBUTIONS FOR EDUCATIONAL SCHOLARSHIP ORGANIZATIONS,  THE  GEOGRAPH-
ICAL DISTRIBUTION BY COUNTY OF THE APPLICATIONS FOR CONTRIBUTION AUTHOR-
IZATION  CERTIFICATES, THE GEOGRAPHICAL DISTRIBUTION BY COUNTY OF PUBLIC
EDUCATION ENTITIES, LOCAL EDUCATION FUNDS, AND  EDUCATIONAL  SCHOLARSHIP
ORGANIZATIONS  FOR  WHICH  CONTRIBUTION  AUTHORIZATION CERTIFICATES WERE
ISSUED; INFORMATION, INCLUDING GEOGRAPHICAL DISTRIBUTION BY  COUNTY,  OF
THE  NUMBER OF ELIGIBLE PUPILS THAT RECEIVED SCHOLARSHIPS, THE NUMBER OF
QUALIFIED SCHOOLS ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED SUCH  SCHOL-
ARSHIPS, AND THE AVERAGE VALUE OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE
PUPILS. THE COMMISSIONER AND DESIGNATED EMPLOYEES OF THE DEPARTMENT, THE
BOARD  OF REGENTS AND ALL MEMBERS OF THE BOARD OF REGENTS, INCLUDING THE
COMMISSIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE DEPARTMENT  OF
EDUCATION,  SHALL  BE  ALLOWED  AND  ARE  DIRECTED TO SHARE AND EXCHANGE
INFORMATION REGARDING THE CREDITS APPLIED FOR, ALLOWED OR CLAIMED PURSU-
ANT TO THIS SECTION; THE TAXPAYERS WHO ARE APPLYING FOR CREDITS  OR  WHO
ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM
CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT; AND THE PUBLIC EDUCATION
ENTITIES,  LOCAL  EDUCATION  FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS THAT APPLIED FOR APPROVAL TO BE AUTHORIZED  TO  RECEIVE  QUALIFIED
CONTRIBUTIONS  AND  WHO  WERE APPROVED TO BE AUTHORIZED TO ISSUE CERTIF-
ICATES OF RECEIPT, INCLUDING INFORMATION CONTAINED IN  OR  DERIVED  FROM
APPLICATION  FORMS  SUBMITTED TO THE DEPARTMENT OF EDUCATION OR BOARD OF
REGENTS.
  (M) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-14: SECTION 210; SUBDIVISION 47;
  (2) ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (W); AND SECTION 615;
SUBSECTION (G);
  (3) ARTICLE 32: SECTION 1456; SUBSECTION (AA);
  (4) ARTICLE 33: SECTION 1511; SUBDIVISION (DD).
  S  4.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 21 to read as follows:
  (21) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH CREDIT IS CLAIMED
PURSUANT  TO  SUBDIVISION FORTY-SEVEN OF SECTION TWO HUNDRED TEN OF THIS
CHAPTER.
  S 5. Section 210 of the tax law is amended by adding a new subdivision
47 to read as follows:
  47. EDUCATION INVESTMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
SECTION THIRTY-NINE OF THIS CHAPTER, AGAINST THE  TAX  IMPOSED  BY  THIS
ARTICLE.

A. 1826--B                         11

  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO  LESS
THAN  THE  HIGHER  OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) OR (D) OF
SUBDIVISION ONE OF THIS  SECTION.  HOWEVER,  IF  THE  AMOUNT  OF  CREDIT
ALLOWED UNDER THIS SUBDIVISION FOR QUALIFIED CONTRIBUTIONS FOR ANY TAXA-
BLE  YEAR  REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT
DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER  TO  THE  SUCCEEDING
FIVE  YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR
YEARS.
  S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxvi) to read as
follows:
(XXXVI) EDUCATION INVESTMENT         AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (WW)     FORTY-SEVEN OF SECTION TWO HUNDRED
                                     TEN OR SUBSECTION (AA) OF SECTION
                                     FOURTEEN HUNDRED FIFTY-SIX
  S 7. Section 606 of the tax law is amended by adding a new  subsection
(w) to read as follows:
  (W)  INSTRUCTIONAL  MATERIALS  AND  SUPPLIES CREDIT. FOR TAXABLE YEARS
BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, A  TAXPAYER
SHALL  BE ALLOWED A CREDIT IN THE AMOUNT PAID BY THE TAXPAYER DURING THE
TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS AND SUPPLIES  WITH  RESPECT  TO
CLASSROOM  BASED  INSTRUCTION  IN  A  QUALIFIED  SCHOOL,  OR ONE HUNDRED
DOLLARS, WHICHEVER IS LESS; PROVIDED THAT THE  TAXPAYER  IS  A  TEACHER,
INSTRUCTOR,  COUNSELOR,  PRINCIPAL,  OR  AIDE  IN A QUALIFIED SCHOOL, AS
DEFINED IN SECTION THIRTY-NINE  OF  THIS  CHAPTER,  FOR  AT  LEAST  NINE
HUNDRED HOURS DURING A SCHOOL YEAR. FOR PURPOSES OF THIS SUBSECTION, THE
TERM "MATERIALS AND SUPPLIES" MEANS AMOUNTS PAID FOR INSTRUCTIONAL MATE-
RIALS OR SUPPLIES THAT ARE DESIGNATED FOR CLASSROOM USE IN ANY QUALIFIED
SCHOOL.
  S  8. Section 606 of the tax law is amended by adding a new subsection
(ww) to read as follows:
  (WW) EDUCATION INVESTMENT TAX  CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY QUALIFIED CONTRIBUTIONS  FOR  ANY  TAXABLE  YEAR
EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S 9. Subsection (g) of section 615 of the tax law is amended by adding
a new paragraph 3 to read as follows:
  (3)  WITH  RESPECT  TO  AN  INDIVIDUAL  WHO  HAS CLAIMED THE EDUCATION
INVESTMENT TAX CREDIT FOR QUALIFIED CONTRIBUTIONS PURSUANT  TO  SUBDIVI-
SION (WW) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, THE TAXPAYER'S NEW
YORK  ITEMIZED DEDUCTION SHALL BE REDUCED BY ANY CHARITABLE CONTRIBUTION
DEDUCTION ALLOWED UNDER SECTION ONE  HUNDRED  SEVENTY  OF  THE  INTERNAL
REVENUE CODE WITH RESPECT TO SUCH QUALIFIED CONTRIBUTIONS.
  S  10.  Section  1456  of  the  tax  law  is  amended  by adding a new
subsection (aa) to read as follows:
  (AA) EDUCATION INVESTMENT TAX  CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION OF CREDIT. IN NO EVENT SHALL THE CREDIT ALLOWED UNDER
THIS SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX  TO  LESS
THAN THE MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED

A. 1826--B                         12

FIFTY-FIVE  OF  THIS  ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT FOR ANY
QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR REDUCES  THE  TAX  TO  SUCH
AMOUNT,  THE EXCESS MAY BE CARRIED OVER TO THE SUCCEEDING FIVE YEARS AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  11.  Subsection  (b)  of  section 1453 of the tax law is amended by
adding a new paragraph 16 to read as follows:
  (16) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH CREDIT IS CLAIMED
PURSUANT TO SECTION FOURTEEN HUNDRED FIFTY-SIX OF THIS ARTICLE.
  S 12. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (W) to read as follows:
  (W)  THE  AMOUNT  OF  ANY  DEDUCTION  ALLOWED  PURSUANT TO SECTION ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH CREDIT IS CLAIMED
PURSUANT TO SECTION FIFTEEN HUNDRED ELEVEN OF THIS ARTICLE.
  S 13. Section 1511 of the tax law is amended by adding a new  subdivi-
sion (dd) to read as follows:
  (DD)  EDUCATION  INVESTMENT  TAX  CREDIT.  (1)  ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A)  OF  SECTION
FIFTEEN HUNDRED TWO OR BY SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE,
WHICHEVER  IS APPLICABLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER
THIS SUBDIVISION FOR ANY QUALIFIED CONTRIBUTIONS FOR  ANY  TAXABLE  YEAR
REDUCES  THE  TAX  TO SUCH AMOUNT, THE EXCESS MAY BE CARRIED OVER TO THE
SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE  TAXPAYER'S  TAX  FOR
SUCH YEAR OR YEARS.
  S  14. The education law is amended by adding a new article 25 to read
as follows:
                               ARTICLE 25
                 EDUCATION INVESTMENT TAX CREDIT PROGRAM
SECTION 1209. SHORT TITLE.
        1210. DEFINITIONS.
        1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1212. APPLICATIONS  FOR  APPROVAL  TO  ISSUE   CERTIFICATES   OF
                RECEIPT.
        1213. APPLICATION APPROVAL.
        1214. ANNUAL REVIEW.
        1215. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1216. REPORTING AND RECORDKEEPING.
        1217. COMMISSIONER; POWERS.
  S  1209.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "EDUCATION INVESTMENT TAX CREDIT PROGRAM".
  S 1210. DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "AUTHORIZED  CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT LISTED ON
THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
  2. "CONTRIBUTION" MEANS A DONATION PAID  BY  CASH,  CHECK,  ELECTRONIC
FUNDS  TRANSFER,  DEBIT  CARD OR CREDIT CARD MADE BY THE TAXPAYER DURING
THE TAX YEAR.
  3. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC OR  SIMILAR  PROGRAM  OF  A
PUBLIC  SCHOOL  THAT  ENHANCES THE CURRICULUM OR ACADEMIC PROGRAM OF THE
PUBLIC SCHOOL, OR PROVIDES A  PRE-KINDERGARTEN  PROGRAM  TO  THE  PUBLIC
SCHOOL.  FOR  PURPOSES  OF  THIS DEFINITION, THE INSTRUCTION, MATERIALS,
PROGRAMS OR OTHER  ACTIVITIES  OFFERED  BY  OR  THROUGH  AN  EDUCATIONAL

A. 1826--B                         13

PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING FEATURES: (A)
INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMI-
LY  AND  CONSUMER  SCIENCES; LITERARY, PERFORMING AND VISUAL ARTS; MATH-
EMATICS,  SOCIAL  STUDIES,  TECHNOLOGY  AND  SCIENTIFIC ACHIEVEMENT; (B)
INSTRUCTION OR PROGRAMMING  TO  MEET  THE  EDUCATION  NEEDS  OF  AT-RISK
STUDENTS  OR  STUDENTS  WITH  DISABILITIES,  INCLUDING TUTORING OR COUN-
SELING; (C) INSTRUCTION OR PROGRAMMING BEFORE  OR  AFTER  PUBLIC  SCHOOL
HOURS, OR ON WEEKENDS THAT IMPROVES STUDENT ACADEMIC ACHIEVEMENT INCLUD-
ING    PREPARATION  FOR  COLLEGE  OR A CAREER; OR (D) USE OF SPECIALIZED
INSTRUCTIONAL MATERIALS, INSTRUCTORS OR INSTRUCTION NOT  PROVIDED  BY  A
PUBLIC SCHOOL.
  4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
TY WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C)  OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
AT LEAST NINETY PERCENT OF  THE  REVENUE  FROM  QUALIFIED  CONTRIBUTIONS
RECEIVED  DURING  THE  LAST  MONTH OF THE IMMEDIATELY PRECEDING CALENDAR
YEAR AND THE FIRST ELEVEN MONTHS OF THE CALENDAR  YEAR  AND  ANY  INCOME
DERIVED  FROM  QUALIFIED  CONTRIBUTIONS  DURING SUCH MONTHS FOR SCHOLAR-
SHIPS, (III) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND  ANY  INCOME
DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM
THE  ORGANIZATION'S  OPERATING  OR  OTHER  FUNDS  UNTIL  SUCH  QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE,  (IV)  PROVIDES  SCHOLAR-
SHIPS WITHOUT LIMITING AVAILABILITY TO ONLY ELIGIBLE PUPILS OF ONE QUAL-
IFIED  SCHOOL,  AND  (V) IS APPROVED TO RECEIVE AUTHORIZED CONTRIBUTIONS
AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (I) IS A RESIDENT OF THIS STATE,
(II) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF  SECTION  THIR-
TY-TWO  HUNDRED  TWO  OF  THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR
BEFORE DECEMBER FIRST OF THE YEAR  IN  WHICH  THEY  ARE  ENROLLED  IN  A
PRE-KINDERGARTEN  PROGRAM,  AND  (III)  ATTENDS  OR IS ABOUT TO ATTEND A
QUALIFIED SCHOOL.
  6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH  (I)  IS
EXEMPT  FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) IS  ESTABLISHED  FOR
THE PURPOSE OF SUPPORTING AT LEAST ONE PUBLIC SCHOOL, OR A PUBLIC SCHOOL
DISTRICT  LOCATED  IN  THIS STATE, (III) USES AT LEAST NINETY PERCENT OF
THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE  IMME-
DIATELY  PRECEDING  CALENDAR  YEAR  AND  THE  FIRST ELEVEN MONTHS OF THE
CALENDAR YEAR AND ANY INCOME DERIVED FROM SUCH  QUALIFIED  CONTRIBUTIONS
DURING  SUCH  MONTHS  TO  SUPPORT THE PUBLIC SCHOOL OR SCHOOLS OR PUBLIC
SCHOOL DISTRICT OR DISTRICTS THAT SUCH  FUND  HAS  BEEN  ESTABLISHED  TO
SUPPORT,  (IV) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME
DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM
THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
OR  INCOME ARE WITHDRAWN FOR USE, AND (V) IS APPROVED TO RECEIVE AUTHOR-
IZED CONTRIBUTIONS AND ISSUE CERTIFICATES OF RECEIPT  PURSUANT  TO  THIS
ARTICLE.
  7.   "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM OR ELEMENTARY, SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL, OTHER
THAN A PUBLIC SCHOOL, THAT IS PROVIDING INSTRUCTION TO AN ELIGIBLE PUPIL
IN ACCORDANCE WITH SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF
THIS CHAPTER.
  8. "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL  DISTRICT  IN  THIS
STATE,  A PUBLIC SCHOOL IN THIS STATE, OR A SCHOOL IMPROVEMENT ORGANIZA-
TION, PROVIDED THAT SUCH PUBLIC SCHOOL DISTRICT, PUBLIC SCHOOL OR SCHOOL
IMPROVEMENT ORGANIZATION DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS  AND

A. 1826--B                         14

ANY  INCOME  DERIVED  FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS
SEPARATE FROM THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR
OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME  ARE  WITHDRAWN
FOR USE FROM OPERATING OR OTHER FUNDS AND IS APPROVED TO RECEIVE AUTHOR-
IZED  CONTRIBUTIONS  AND  ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS
ARTICLE.
  9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR  SECONDARY  SCHOOL  IN
THIS  STATE PURSUANT TO ARTICLE ELEVEN OF THE NEW YORK CONSTITUTION, BUT
SHALL NOT INCLUDE A CHARTER SCHOOL AUTHORIZED BY  ARTICLE  FIFTY-SIX  OF
THIS CHAPTER.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A TAXPAYER TO A PUBLIC EDUCATION ENTITY, LOCAL EDUCATION FUND, OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION LISTED IN THE CONTRIBUTION AUTHORIZATION
CERTIFICATE ISSUED TO THE TAXPAYER FOR WHICH THE TAXPAYER HAS RECEIVED A
CERTIFICATE OF RECEIPT FROM SUCH ENTITY, FUND, OR ORGANIZATION.
  11.  "QUALIFIED  EDUCATOR"  MEANS  AN  INDIVIDUAL  WHO  IS  A TEACHER,
INSTRUCTOR, COUNSELOR, PRINCIPAL, OR AIDE IN A QUALIFIED SCHOOL  FOR  AT
LEAST NINE HUNDRED HOURS DURING A SCHOOL YEAR.
  12.  "QUALIFIED  SCHOOL"  MEANS  A  PUBLIC  SCHOOL OR NONPUBLIC SCHOOL
LOCATED IN THIS STATE.
  13. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP  OR  TUITION  GRANT
AWARDED  TO  AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL IN AN AMOUNT
NOT TO EXCEED THE TUITION NECESSARY TO  ATTEND  SUCH  SCHOOL;  PROVIDED,
HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL IN A
DISTRICT OF WHICH SUCH PUPIL IS NOT A RESIDENT, THE AMOUNT OF THE EDUCA-
TIONAL  SCHOLARSHIP  OR TUITION GRANT AWARDED MAY NOT EXCEED THE TUITION
CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION FOUR
OF SECTION THIRTY-TWO HUNDRED TWO OF  THIS  CHAPTER,  BUT  ONLY  IF  THE
SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY
FOR SUCH TUITION.
  14.  "SCHOOL  IMPROVEMENT  ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY
THAT (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C)
OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II)  USES  AT
LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE
LAST MONTH OF THE IMMEDIATELY PRECEDING  CALENDAR  YEAR  AND  THE  FIRST
ELEVEN MONTHS OF THE CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS  DURING  SUCH  MONTHS  TO  ASSIST PUBLIC SCHOOLS OR PUBLIC
SCHOOL DISTRICTS LOCATED IN THIS STATE IN THEIR PROVISION OF EDUCATIONAL
PROGRAMS, EITHER BY MAKING CONTRIBUTIONS TO ONE OR MORE  PUBLIC  SCHOOLS
OR  PUBLIC  SCHOOL  DISTRICTS  LOCATED IN THIS STATE OR PROVIDING EDUCA-
TIONAL PROGRAMS TO, OR IN CONJUNCTION WITH, ONE OR MORE  PUBLIC  SCHOOLS
OR  PUBLIC  SCHOOL  DISTRICTS  LOCATED IN THIS STATE, (III) DEPOSITS AND
HOLDS QUALIFIED CONTRIBUTIONS AND  ANY  INCOME  DERIVED  FROM  QUALIFIED
CONTRIBUTIONS  IN  AN  ACCOUNT  THAT IS SEPARATE FROM THE ORGANIZATION'S
OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED  CONTRIBUTIONS  OR  INCOME
ARE  WITHDRAWN  FOR  USE,  AND  (IV)  IS  APPROVED TO RECEIVE AUTHORIZED
CONTRIBUTIONS AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO  THIS  ARTI-
CLE.    SUCH  TERM INCLUDES A PRE-KINDERGARTEN PROGRAM OR NOT-FOR-PROFIT
ENTITY THAT ALLOWS THE TAXPAYER  TO  CHOOSE  TO  DONATE  TO  A  PROGRAM,
PROJECT  OR  INITIATIVE  IDENTIFIED BY A QUALIFIED EDUCATOR FOR USE IN A
PUBLIC SCHOOL.
  S 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1.  PUBLIC  SCHOOLS
AND  PUBLIC  SCHOOL  DISTRICTS.  ALL  PUBLIC  SCHOOLS  AND PUBLIC SCHOOL
DISTRICTS SHALL BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT FOR  QUALI-
FIED  CONTRIBUTIONS  IN  ACCORDANCE  WITH SECTION THIRTY-NINE OF THE TAX
LAW, PROVIDED, THAT SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL  DISTRICT  SHALL

A. 1826--B                         15

NOT  BE  APPROVED  IF  EITHER  (I)  SUCH  PUBLIC SCHOOL OR PUBLIC SCHOOL
DISTRICT FAILS TO DEPOSIT  AND  HOLD  QUALIFIED  CONTRIBUTIONS  AND  ANY
INCOME  DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPA-
RATE FROM THE SCHOOL OR SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL
SUCH  QUALIFIED  CONTRIBUTIONS  OR INCOME ARE WITHDRAWN FOR USE, OR (II)
THE COMMISSIONER HAS NOT REVOKED SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR
PUBLIC SCHOOL DISTRICT PURSUANT TO SECTION  TWELVE  HUNDRED  SIXTEEN  OF
THIS ARTICLE.
  2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS  AND  LOCAL  EDUCATION  FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN  APPLICATION  PURSUANT  TO
SECTION TWELVE HUNDRED TWELVE AND RECEIVING APPROVAL PURSUANT TO SECTION
TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
  S  1212.  APPLICATIONS  FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
1. SCHOOL IMPROVEMENT ORGANIZATIONS. A SCHOOL  IMPROVEMENT  ORGANIZATION
SHALL  SUBMIT  AN  APPLICATION  FOR  APPROVAL  TO  ISSUE CERTIFICATES OF
RECEIPT IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER,  PROVIDED
THAT  SUCH  APPLICATION  SHALL  INCLUDE  (I)  SUBMISSION  OF DOCUMENTARY
EVIDENCE THAT SUCH SCHOOL  IMPROVEMENT  ORGANIZATION  HAS  BEEN  GRANTED
EXEMPTION  FROM  TAXATION  UNDER  PARAGRAPH  THREE  OF SUBSECTION (C) OF
SECTION FIVE HUNDRED ONE OF THE  INTERNAL  REVENUE  CODE,  (II)  CERTIF-
ICATION  THAT  ALL  QUALIFIED  CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS ARE DEPOSITED AND HELD IN  AN  ACCOUNT  THAT  IS
SEPARATE  FROM  THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, (III) CERTIFICATION  THAT
SUCH SCHOOL IMPROVEMENT ORGANIZATION WILL USE AT LEAST NINETY PERCENT OF
THE  QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE IMME-
DIATELY PRECEDING CALENDAR YEAR AND  THE  FIRST  ELEVEN  MONTHS  OF  THE
CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING
SUCH  MONTHS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS IN THIS
STATE IN THE PROVISION OF THEIR EDUCATIONAL PROGRAMS BY MAKING  CONTRIB-
UTIONS  TO  ONE  OR  MORE  PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS, OR
PROVIDING EDUCATIONAL PROGRAMS TO, OR IN CONJUNCTION WITH, ONE  OR  MORE
PUBLIC  SCHOOLS  OR  PUBLIC  SCHOOL DISTRICTS LOCATED IN THIS STATE, AND
(IV) A LIST OF THE NAMES AND ADDRESSES OF ALL MEMBERS OF  THE  GOVERNING
BOARD OF THE SCHOOL IMPROVEMENT ORGANIZATION.
  2.  EDUCATIONAL  SCHOLARSHIP ORGANIZATIONS. AN EDUCATIONAL SCHOLARSHIP
ORGANIZATION SHALL SUBMIT AN APPLICATION FOR APPROVAL TO  ISSUE  CERTIF-
ICATES OF RECEIPT IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER,
PROVIDED  THAT SUCH APPLICATION SHALL INCLUDE (I) SUBMISSION OF DOCUMEN-
TARY EVIDENCE THAT SUCH EDUCATIONAL SCHOLARSHIP  ORGANIZATION  HAS  BEEN
GRANTED  EXEMPTION FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C)
OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE,  (II)  CERTIF-
ICATION  THAT  ALL  QUALIFIED  CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS ARE DEPOSITED AND HELD IN  AN  ACCOUNT  THAT  IS
SEPARATE  FROM  THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, (III) CERTIFICATION  THAT
SUCH ORGANIZATION WILL USE AT LEAST NINETY PERCENT OF ITS ANNUAL REVENUE
FROM QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE IMME-
DIATELY  PRECEDING  CALENDAR  YEAR  AND  THE  FIRST ELEVEN MONTHS OF THE
CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING
SUCH MONTHS FOR SCHOLARSHIPS, (IV) CERTIFICATION THAT SUCH  ORGANIZATION
WILL PROVIDE SCHOLARSHIPS TO ELIGIBLE PUPILS WITHOUT LIMITING AVAILABIL-
ITY  TO  ONLY ELIGIBLE PUPILS OF ONE QUALIFIED SCHOOL, AND (V) A LIST OF

A. 1826--B                         16

THE NAMES AND ADDRESSES OF ALL MEMBERS OF THE GOVERNING  BOARD  OF  SUCH
EDUCATIONAL SCHOLARSHIP ORGANIZATION.
  3.  LOCAL  EDUCATION  FUNDS.  A  LOCAL  EDUCATION FUND SHALL SUBMIT AN
APPLICATION FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT  IN  THE  FORM
AND  MANNER  PRESCRIBED BY THE COMMISSIONER, PROVIDED THAT SUCH APPLICA-
TION SHALL INCLUDE (I) SUBMISSION  OF  DOCUMENTARY  EVIDENCE  THAT  SUCH
LOCAL  EDUCATIONAL  FUND  HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER
PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE  HUNDRED  ONE  OF  THE
INTERNAL REVENUE CODE, (II) DOCUMENTATION THAT SUCH LOCAL EDUCATION FUND
HAS  BEEN  ESTABLISHED  TO  SUPPORT AT LEAST ONE PUBLIC SCHOOL OR PUBLIC
SCHOOL DISTRICT, (III) THE NAME OF EACH PUBLIC SCHOOL OR  PUBLIC  SCHOOL
DISTRICT  THAT IS EITHER SUPPORTED BY OR WILL BE SUPPORTED BY SUCH LOCAL
EDUCATION FUND, (IV) CERTIFICATION THAT SUCH  FUND  WILL  USE  AT  LEAST
NINETY  PERCENT  OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST
MONTH OF THE IMMEDIATELY PRECEDING CALENDAR YEAR AND  THE  FIRST  ELEVEN
MONTHS  OF  THE  CALENDAR  YEAR  AND  ANY  INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS DURING SUCH MONTHS TO SUPPORT THE PUBLIC SCHOOL OR SCHOOLS
OR PUBLIC SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND  HAS  BEEN  ESTAB-
LISHED  TO  SUPPORT,  (V)  CERTIFICATION THAT SUCH FUND WILL DEPOSIT AND
HOLD QUALIFIED CONTRIBUTIONS  AND  ANY  INCOME  DERIVED  FROM  QUALIFIED
CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING
OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR  INCOME  ARE  WITH-
DRAWN FOR USE, AND (VI) A LIST OF THE NAMES AND ADDRESSES OF ALL MEMBERS
OF THE GOVERNING BOARD OF SUCH LOCAL EDUCATION FUND.
  S  1213.  APPLICATION  APPROVAL. 1. IN GENERAL.   THE BOARD OF REGENTS
SHALL REVIEW EACH APPLICATION TO DETERMINE WHETHER THE  APPLICANT  SHALL
BE  ENTITLED  TO  APPROVAL  TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO
THIS ARTICLE.  APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE AT THE
NEXT SCHEDULED MEETING OF THE BOARD OF REGENTS, PROVIDED,  HOWEVER  THAT
IF  IT IS NOT PRACTICABLE FOR THE BOARD TO REVIEW AN APPLICATION THAT IS
RECEIVED FEWER THAN THREE DAYS BEFORE A SCHEDULED MEETING, THE BOARD MAY
REVIEW SUCH AN APPLICATION AT THE IMMEDIATELY FOLLOWING SCHEDULED  MEET-
ING.
  2. NOTIFICATION. APPLICANTS SHALL BE NOTIFIED OF THE BOARD OF REGENTS'
DETERMINATION WITHIN THREE BUSINESS DAYS OF THE BOARD'S DETERMINATION.
  S  1214.  ANNUAL  REVIEW.  1. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCA-
TIONAL SCHOLARSHIP ORGANIZATIONS, AND LOCAL EDUCATION  FUNDS.  (A)  EACH
SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZATION OR
LOCAL  EDUCATION  FUND THAT RECEIVED APPROVAL BY THE BOARD OF REGENTS TO
ISSUE CERTIFICATES OF RECEIPT SHALL FILE AN  APPLICATION  FOR  RECERTIF-
ICATION  BY  THE  COMMISSIONER  ON AN ANNUAL BASIS. SUCH APPLICATION FOR
RECERTIFICATION SHALL BE IN  THE  FORM  AND  MANNER  PRESCRIBED  BY  THE
DEPARTMENT  AND  SHALL  INCLUDE:  (I) CERTIFICATION FROM THE DIRECTOR OR
CHIEF EXECUTIVE OFFICER OF THE ORGANIZATION OR ENTITY THAT  SUCH  ORGAN-
IZATION  OR  ENTITY  HAS COMPLIED WITH THE APPLICABLE REPORTING REQUIRE-
MENTS OF SECTION TWELVE HUNDRED SIXTEEN OF THIS ARTICLE AND  SUBDIVISION
(L)  OF SECTION THIRTY-NINE OF THE TAX LAW, (II) A COPY OF THE ORGANIZA-
TION OR FUND'S FEDERAL FORM 990 OR OTHER  FEDERAL  FORM  INDICATING  TAX
STATUS  OF  THE  ORGANIZATION  OR  FUND  FOR FEDERAL TAX PURPOSES, (III)
CERTIFICATION THAT SUCH  ORGANIZATION  OR  FUND  USED  AT  LEAST  NINETY
PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF
THE  IMMEDIATELY  PRECEDING CALENDAR YEAR AND THE FIRST ELEVEN MONTHS OF
THE CALENDAR YEAR AND ANY INCOME DERIVED  FROM  QUALIFIED  CONTRIBUTIONS
DURING SUCH MONTHS TO, IN THE CASE OF A SCHOOL IMPROVEMENT ORGANIZATION,
ASSIST  IN  THE PROVISION OF EDUCATIONAL PROGRAMS IN AT LEAST ONE PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT, OR IN THE CASE OF AN EDUCATIONAL SCHO-

A. 1826--B                         17

LARSHIP ORGANIZATION, PROVIDE SCHOLARSHIPS TO ELIGIBLE STUDENTS,  OR  IN
THE  CASE  OF A LOCAL EDUCATION FUND, SUPPORT AT LEAST ONE PUBLIC SCHOOL
OR PUBLIC SCHOOL DISTRICT, (IV) CERTIFICATION THAT SUCH ORGANIZATION  OR
FUND  DEPOSITED  AND  HELD  ALL  QUALIFIED  CONTRIBUTIONS AND ANY INCOME
DERIVED FROM QUALIFIED  CONTRIBUTIONS  ARE  DEPOSITED  AND  HELD  IN  AN
ACCOUNT  THAT  IS  SEPARATE FROM THE ORGANIZATION OR FUND'S OPERATING OR
OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME  ARE  WITHDRAWN
FOR  USE,  AND (V) A COPY OF THE ORGANIZATION'S CURRENT FINANCIAL STATE-
MENTS.
  (B) A SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP FUND OR
LOCAL EDUCATION FUND, WITHIN THIRTY DAYS OF RECEIPT BY THE DEPARTMENT OF
AN APPLICATION FOR RECERTIFICATION BY SUCH SCHOOL IMPROVEMENT  ORGANIZA-
TION,  EDUCATIONAL  SCHOLARSHIP  FUND  OR LOCAL EDUCATION FUND, SHALL BE
DEEMED RECERTIFIED BY THE COMMISSIONER TO ISSUE CERTIFICATES OF  RECEIPT
UNLESS THE COMMISSIONER MAKES A DETERMINATION IN WRITING THAT THE APPLI-
CATION FAILS TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION.
  2.  PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS. (A) EACH PUBLIC SCHOOL
OR PUBLIC SCHOOL DISTRICT SHALL FILE AN ANNUAL  CERTIFICATION  WITH  THE
COMMISSIONER IN THE FORM AND MANNER PRESCRIBED BY THE BOARD. SUCH ANNUAL
CERTIFICATION SHALL INCLUDE (I) CERTIFICATION THAT SUCH PUBLIC SCHOOL OR
PUBLIC  SCHOOL  DISTRICT  HAS  COMPLIED  WITH  THE  APPLICABLE REPORTING
REQUIREMENTS OF SECTION TWELVE  HUNDRED  SIXTEEN  OF  THIS  ARTICLE  AND
SUBDIVISION  (L) OF SECTION THIRTY-NINE OF THE TAX LAW, AND (II) CERTIF-
ICATION THAT SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT  DEPOSITS  AND
HOLDS  QUALIFIED  CONTRIBUTIONS  AND  ANY  INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC  SCHOOL  OR
PUBLIC  SCHOOL  DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
  (B) A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT, WITHIN THIRTY  DAYS  OF
RECEIPT  BY THE DEPARTMENT OF AN APPLICATION FOR RECERTIFICATION BY SUCH
PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT, SHALL BE DEEMED RECERTIFIED  BY
THE COMMISSIONER TO ISSUE CERTIFICATES OF RECEIPT UNLESS THE COMMISSION-
ER MAKES A DETERMINATION IN WRITING THAT THE APPLICATION FAILS TO COMPLY
WITH THE PROVISIONS OF THIS SUBDIVISION.
  S  1215.  REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
BOARD OF REGENTS, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION  AND
FINANCE,  MAY  REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING  THAT  SUCH  ORGANIZATION,  FUND,  SCHOOL OR SCHOOL DISTRICT HAS
VIOLATED THIS ARTICLE OR SECTION  THIRTY-NINE  OF  THE  TAX  LAW.  THESE
VIOLATIONS  SHALL  INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING:
(1) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE, (2) THE FAILURE TO
MAINTAIN FULL AND ADEQUATE RECORDS WITH RESPECT TO THE RECEIPT OF QUALI-
FIED CONTRIBUTIONS, (3) THE  FAILURE  TO  SUPPLY  SUCH  RECORDS  TO  THE
DEPARTMENT OR THE BOARD OF REGENTS, OR (4) THE FAILURE TO PROVIDE NOTICE
TO  THE  DEPARTMENT  OF  TAXATION AND FINANCE OF THE ISSUANCE OF CERTIF-
ICATES OF RECEIPT PURSUANT TO SECTION THIRTY-NINE OF THE TAX LAW.  WITH-
IN FIVE DAYS OF THE DETERMINATION REVOKING  APPROVAL,  THE  COMMISSIONER
SHALL  PROVIDE  NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLARSHIP
ORGANIZATION, SCHOOL IMPROVEMENT  ORGANIZATION,  LOCAL  EDUCATION  FUND,
PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT.
  S  1216.  REPORTING  AND  RECORDKEEPING. 1. REPORTING. (A) EDUCATIONAL
SCHOLARSHIP  ORGANIZATIONS,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,   LOCAL
EDUCATION FUNDS, PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS.

A. 1826--B                         18

  (I)  AN  EDUCATIONAL  SCHOLARSHIP ORGANIZATION THAT RECEIVES QUALIFIED
CONTRIBUTIONS SHALL REPORT TO THE BOARD OF REGENTS, ON A FORM PRESCRIBED
BY THE COMMISSIONER BY JANUARY THIRTY-FIRST OF EACH CALENDAR YEAR.  SUCH
REPORT  SHALL  INCLUDE:  (A) THE NAME AND ADDRESS OF THE MEMBERS AND THE
CHAIRPERSON  OF  THE  GOVERNING BOARD OF THE ORGANIZATION, (B) THE TOTAL
NUMBER OF CERTIFICATES OF RECEIPT ISSUED DURING THE IMMEDIATELY  PRECED-
ING  CALENDAR  YEAR,  (C)  THE TOTAL DOLLAR AMOUNT OF QUALIFIED CONTRIB-
UTIONS RECEIVED, AS SET FORTH IN CERTIFICATES OF RECEIPT  ISSUED  DURING
THE  IMMEDIATELY PRECEDING CALENDAR YEAR, (D) THE TOTAL NUMBER OF ELIGI-
BLE PUPILS UTILIZING SCHOLARSHIPS FOR THE IMMEDIATELY PRECEDING CALENDAR
YEAR AND THE SCHOOL YEAR IN PROGRESS AND THE TOTAL DOLLAR VALUE  OF  THE
SCHOLARSHIPS, (E) THE NAME AND ADDRESS OF EACH QUALIFIED SCHOOL AT WHICH
SCHOLARSHIPS  ARE  CURRENTLY  BEING  UTILIZED,  DETAILING  THE NUMBER OF
ELIGIBLE PUPILS  AND  THE  TOTAL  DOLLAR  VALUE  OF  SCHOLARSHIPS  BEING
UTILIZED AT EACH QUALIFIED SCHOOL, AND (F) ANY ADDITIONAL RELATED INFOR-
MATION REQUESTED BY THE COMMISSIONER.
  (II)   A  SCHOOL  IMPROVEMENT  ORGANIZATION  THAT  RECEIVES  QUALIFIED
CONTRIBUTIONS SHALL REPORT TO THE DEPARTMENT OR BOARD OF REGENTS,  ON  A
FORM  PRESCRIBED  BY  THE  COMMISSIONER  BY JANUARY THIRTY-FIRST OF EACH
CALENDAR YEAR. SUCH REPORT SHALL INCLUDE: (A) THE NAME  AND  ADDRESS  OF
THE  MEMBERS AND THE CHAIRPERSON OF THE GOVERNING BOARD OF THE ORGANIZA-
TION, (B) THE TOTAL NUMBER OF CERTIFICATES OF RECEIPT ISSUED DURING  THE
IMMEDIATELY  PRECEDING  CALENDAR  YEAR,  (C)  THE TOTAL DOLLAR AMOUNT OF
QUALIFIED CONTRIBUTIONS RECEIVED, AS SET FORTH IN  THE  CERTIFICATES  OF
RECEIPT  ISSUED  DURING  THE  IMMEDIATELY PRECEDING CALENDAR YEAR, (D) A
LIST OF THE EDUCATIONAL PROGRAMS THAT WERE PROVIDED TO PUBLIC SCHOOLS OR
PUBLIC SCHOOL DISTRICTS DURING THE  IMMEDIATELY PRECEDING CALENDAR  YEAR
THROUGH  QUALIFIED  CONTRIBUTIONS,  INCLUDING THE GEOGRAPHIC LOCATION OF
SUCH PROGRAMS BY COUNTY, AND  (E)  ANY  ADDITIONAL  RELATED  INFORMATION
REQUESTED BY THE COMMISSIONER.
  (III)  A  LOCAL  EDUCATION  FUND THAT RECEIVES QUALIFIED CONTRIBUTIONS
PURSUANT TO THIS ARTICLE SHALL REPORT TO THE DEPARTMENT OR THE BOARD  OF
REGENTS,   ON   A   FORM  PRESCRIBED  BY  THE  COMMISSIONER  BY  JANUARY
THIRTY-FIRST OF EACH CALENDAR YEAR. SUCH REPORT SHALL INCLUDE:  (A)  THE
NAME  AND  ADDRESS  OF  THE MEMBERS AND THE CHAIRPERSON OF THE GOVERNING
BOARD OF THE ORGANIZATION, (B)  THE  TOTAL  NUMBER  OF  CERTIFICATES  OF
RECEIPT  ISSUED  DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR, (C) THE
TOTAL DOLLAR AMOUNT OF QUALIFIED CONTRIBUTIONS RECEIVED AS SET FORTH  IN
THE  CERTIFICATES  OF  RECEIPT  ISSUED  DURING THE IMMEDIATELY PRECEDING
CALENDAR YEAR, (D) THE NAME AND ADDRESS OF THE PUBLIC SCHOOLS OR  PUBLIC
SCHOOL  DISTRICTS  THAT  THE  LOCAL  EDUCATION FUND SUPPORTED DURING THE
IMMEDIATELY PRECEDING CALENDAR YEAR,  AND  (E)  ANY  ADDITIONAL  RELATED
INFORMATION REQUESTED BY THE COMMISSIONER.
  (IV) A PUBLIC SCHOOL DISTRICT OR PUBLIC SCHOOL THAT RECEIVES QUALIFIED
CONTRIBUTIONS SHALL REPORT TO THE COMMISSIONER OR BOARD OF REGENTS, ON A
FORM  PRESCRIBED  BY  THE  COMMISSIONER  BY JANUARY THIRTY-FIRST OF EACH
CALENDAR YEAR. SUCH REPORT  SHALL  INCLUDE:  (A)  THE  TOTAL  NUMBER  OF
CERTIFICATES OF RECEIPT ISSUED DURING THE IMMEDIATELY PRECEDING CALENDAR
YEAR, (B) THE TOTAL DOLLAR AMOUNT OF QUALIFIED CONTRIBUTIONS RECEIVED AS
SET  FORTH  IN  THE  CERTIFICATES  OF RECEIPT ISSUED DURING THE PREVIOUS
CALENDAR YEAR, AND (C) ANY ADDITIONAL RELATED INFORMATION  REQUESTED  BY
THE COMMISSIONER.
  (B)  JOINT  ANNUAL  REPORT.  ON OR BEFORE THE LAST DAY OF MAY FOR EACH
CALENDAR YEAR, THE COMMISSIONER OF TAXATION AND FINANCE AND THE  COMMIS-
SIONER,  JOINTLY, SHALL SUBMIT A WRITTEN REPORT AS PROVIDED IN PARAGRAPH
TWO OF SUBDIVISION (1) OF SECTION THIRTY-NINE OF THE TAX LAW.

A. 1826--B                         19

  2. RECORDKEEPING. EACH EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  SCHOOL
IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC
SCHOOL  DISTRICT  THAT  IS  AUTHORIZED  TO ISSUE CERTIFICATES OF RECEIPT
SHALL MAINTAIN FULL AND ADEQUATE RECORDS OF THE  FOLLOWING  INFORMATION:
(A)  CREDIT  AUTHORIZATION  CERTIFICATES  RECEIVED  IN  ACCORDANCE  WITH
SECTION THIRTY-NINE OF THE TAX LAW,  (B)  THE  CERTIFICATES  OF  RECEIPT
ISSUED  TO  TAXPAYERS  IN ACCORDANCE WITH SECTION THIRTY-NINE OF THE TAX
LAW, AND (C) ANY INFORMATION AS THE COMMISSIONER OR THE BOARD OF REGENTS
MAY PRESCRIBE.
  S 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
SECTION. SUCH REGULATIONS SHALL CONSTRUE THE PROVISIONS OF THIS  SECTION
IN  SUCH  A  MANNER  AS  TO ENCOURAGE QUALIFIED CONTRIBUTIONS; PROVIDED,
HOWEVER, THAT SUCH REGULATIONS SHALL NOT IMPOSE ANY NEW  REQUIREMENT  OR
BURDEN ON THE EDUCATIONAL PROGRAM, INSTRUCTION OR ACTIVITIES OF A PUBLIC
OR NON-PUBLIC SCHOOL; AND PROVIDED, FURTHER, THAT THE COMMISSIONER SHALL
MAKE  ANY  APPLICATION  REQUIRED  TO  BE  FILED PURSUANT TO THIS ARTICLE
AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF  THIS
ARTICLE.
  S  15.  The education law is amended by adding a new section 1503-a to
read as follows:
  S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
OF  A  GENERAL  LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL OR SPECIAL LAW TO THE  CONTRARY,  THE  RECEIPT  OF  SUCH  GIFTS,
DONATIONS,  CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-
FROM, SHALL BE DISREGARDED  FOR  THE  PURPOSES  OF  ALL  APPORTIONMENTS,
COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
  S 16. This act shall not be construed to authorize the commissioner of
education  or  the  commissioner  of  taxation and finance to impose any
regulation or requirement on the  educational  program,  instruction  or
activities  of  a  public  education  entity  that  receives  charitable
contributions pursuant to this act, or  a  non-publilc  school  with  an
eligible  pupil  who  receives  funding  from an educational scholarship
organization pursuant to this act,  unless  specifically  authorized  by
this act.
  S  17.  Severability. If any provision of this section or the applica-
tion thereof to any person or circumstances is held invalid, such  inva-
lidity  shall not affect other provisions or applications of the section
which can be given effect without the invalid provision or  application,
and to this end the provisions of this section are declared to be sever-
able.
  S  18. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2013.

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