senate Bill S6808

Establishes the "education investment incentives act" and tax credit

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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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  • 12 / Mar / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

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

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Bill Details

Versions:
S6808
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Add §41, amd §§208, 210, 606 & 615, Tax L; add Art 25 §§1209 - 1217, §1503-a, Ed L

Sponsor Memo

BILL NUMBER:S6808

TITLE OF BILL: An act to amend the tax law and the education law, in
relation to enacting the "education investment incentives act"

PURPOSE: This bill would provide incentives in the form of tax credit
for donations to public education entities, school improvement
organizations, local education funds, and educational scholarship
organizations, as well as tax credits for certain expenses incurred by
parents who educate their children at home and qualified educators who
purchase materials and supplies for classroom use.

SUMMARY OF PROVISIONS:

Section one of the bill provides the short title, which is the
"education investment incentives act".

Section two of the bill adds new section 41 to the Tax Law, which is
the education investment tax credit. New section 41 includes
definitions of terms such as "authorized contribution," "public
education entity," "local education fund," and "educational
scholarship organization."

The education investment tax credit is available to individuals and
Article 9-A taxpayers that make qualified contributions to public
education entities, school improvement organizations, local education
funds, and educational scholarship organizations. To be eligible to
claim the tax credit provided by new section 41, a taxpayer must,
prior to making a contribution for which the taxpayer will seek a
credit, apply to the Department of Taxation and Finance ("DTF") for a
contribution authorization certificate. If there is credit available,
DTF will issue a contribution authorization certificate to the
taxpayer and provide notice of the issuance of the certificate to the
entity, public school, or public school district named in the
certificate The contribution authorization certificate will list the
amount of the authorized contribution and the entity, public school or
public school district for which the contribution is authorized.
Taxpayers have until November 30 of the calendar year to make the
contribution to the named entity, public school, or public school
district. Upon receipt of a timely authorized contribution, the
recipient will issue a certificate of receipt to the taxpayer. If a
contribution is not timely received, the recipient named in the
contribution authorization certificate will notify DTF The amount of
such authorized contribution will be added to the maximum amount of
credit available in the immediately following calendar year.

The maximum amount of credit that a taxpayer may claim for any year is
the lesser of one million dollars or the aggregate amounts listed on
the credit authorization certificates issued to the taxpayer plus any
amount carried over from a prior year. Any amount of qualified
contributions made in excess of these limits may be carried forward
for 5 years.

Taxpayers may not use a qualified contribution as both a charitable
contribution deduction against their Federal income tax and a credit
against their New York State income tax. Taxpayers claiming the
Federal deduction must add back the amount deducted on their Federal


return so that they can claim the New York State credit. In the case
of individual taxpayers, the add back is not necessary if the
individual is claiming the New York standard deduction.

The credit is capped at $150 million for calendar year 2015 and $225
million in 2016 plus any amounts required to be added to the cap due
to authorized contributions that were not timely made in the
immediately preceding calendar year. Beginning in calendar year 2017,
the credit is capped at $300 million plus any amounts required to be
added to the cap due to authorized contributions that were not timely
made in the immediately preceding calendar year. One half of the
annual cap will be available for qualified contributions made to
public education entities, school improvement organizations, and local
education funds and one half of the annual cap will be available to
educational scholarship organizations to provide scholarships to
public or non-public schools.

Section two also provides reporting requirements for public education
entities, school improvement organizations, local education funds, and
educational scholarship organizations, as well as a joint report from
the Commissioner and the Commissioner of the Department of Education.
The joint report shall include, among other things, statistics
regarding the number of qualified contributions made to each type of
recipient and the distribution of the recipients by county.

Section three of the bill amends Tax Law section 208(9)(b) by adding a
new subparagraph (21) to provide that if a taxpayer claims a
charitable contribution deduction at the Federal level for any amount
that the taxpayer claimed as a credit pursuant to Tax Law section
210(45), such amount must be added back to the taxpayer's entire net
income computation

Section four of the bill amends Tax Law section 210 to add a new
subdivision (48) to provide the mechanism for Article 9-A taxpayers to
claim the education investment tax credit.

Section five of the bill amends Tax Law section 606(i)(1)(B) to add a
new clause (xxxvii) to provide the mechanism for S Corporations to
claim the education investment tax credit.

Section six of the bill amends section 606 of the Tax Law to add two
new subsections (w) and (w-1). New subdivision (w) provides a
refundable credit for home-based instructional materials purchased by
the taxpayer. The amount of the credit is the lesser of $100 or 100%
of the amount used to purchase instructional materials for home-based
educational programs. New subsection (w-1) provides a credit for
teachers and instructors who (1) work in a public, charter or
non-public school for at least 900 hours during a taxable year, and
(2) purchase classroom instructional materials and supplies that are
used in classroom instruction at the public, charter or non-public
school for which the taxpayer is employed. The amount of the credit is
the lesser of $200 or 100% of the amount used to purchase
instructional materials and supplies.

Section seven of the bill amends Tax Law section 606 by adding a new
subsection (xx) to provide the mechanism for Article 22 taxpayers to
claim the education investment incentives credit.


Section eight of the bill amends Tax Law section 615(c) by adding a
new paragraph (9) to provide that if a taxpayer claims a charitable
contribution deduction at the Federal level for any amount claimed as
a credit pursuant to section 606 (xx), such amount must be added back
to the New York adjusted income computation.

Section nine of the bill amends the Education Law to add a new Article
25, entitled the "Education Investment Tax Credit Program." This new
article provides the framework for public education entities, school
improvement organizations, local education funds, and educational
scholarship organizations to apply for authorization to issue
certificates of receipt. This new Article also provides that any
authorization granted may be revoked in a subsequent year.
Additionally, this new Article contains the same definitions and same
joint report requirement that are provided in Tax Law section 41.

Section ten of this bill adds a new section 1503-a to the Education
Law This new section provides that school districts may accept and
solicit donations and gifts. This new section further provides that
any amounts received as donations or gifts shall be disregarded for
purposes of "apportionments, computations and determinations of state
aid."

Section eleven of this bill contains the severability clause.

Section twelve of this bill provides that this act shall take effect
immediately and shall apply to taxable years beginning after December
31, 2014.

EXISTING LAW: New law

JUSTIFICATION: At a time when the state is considering ways of
reducing the tax burden for New York State residents and educators are
seeking an expansion of financial resources, charitable giving for
educational purposes should be stimulated, permitting public education
entities such as school districts and individual public schools,
including charter schools, and non-profits that promote the arts,
civics, and pre-k instruction, to accept and receive voluntary cash
contributions will lessen the need for additional tax revenue,
encouraging voluntary support for education without prejudice for or
against any state-sponsored educational enterprise. The bill promotes
the state's interest in providing the highest quality education to all
children in the state. The tax credit does not constitute public aid
to non-public sectarian institutions. Permitting school personnel to
claim a credit for the purchase of classroom instructional materials
and supplies will insure a wider availability of such materials and
supplies for all students.

LEGISLATIVE HISTORY: Similar to 2013: S.4099-A - Referred to
Investigations and Government Operations

FISCAL IMPLICATIONS: $150 million for calendar year 2015, $225
million in calendar year 2016, and $300 million for each calendar year
beginning in 2017. The bill has the potential to generate $333 million
in voluntary contributions to support educational opportunities for
children in New York State.


EFFECTIVE DATE: This act shall take effect immediately and shall
apply to taxable years beginning after December 31, 2014.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6808

                            I N  S E N A T E

                             March 12, 2014
                               ___________

Introduced  by Sens. GOLDEN, FELDER, GRISANTI, MAZIARZ -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations

AN ACT to amend the tax law and the education law, in relation to enact-
  ing the "education investment incentives 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 incentives act".
  S  2.    The  tax law is amended by adding a new section 41 to read as
follows:
  S 41. 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;  OR  (III)  THE  USE  OF  SPECIALIZED  INSTRUCTIONAL  MATERIALS,
INSTRUCTORS OR INSTRUCTION NOT PROVIDED BY A PUBLIC SCHOOL.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14420-01-4

S. 6808                             2

  4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS AN 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 CALENDAR YEAR
AND  ANY  INCOME  DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS FOR SCHOLAR-
SHIPS, (III) PROVIDES SCHOLARSHIPS TO ELIGIBLE PUPILS  FOR  USE  AT  NOT
FEWER  THAN  THREE  QUALIFIED SCHOOLS, (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 ISSUE CERTIFICATES OF RECEIPT PURSUANT TO
ARTICLE TWENTY-FIVE OF THE EDUCATION LAW.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (I) IS A RESIDENT,  (II)  IS  OF
SCHOOL  AGE  IN  ACCORDANCE  WITH  SUBDIVISION ONE OF SECTION THIRTY-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, (III) ATTENDS OR IS ABOUT TO ATTEND  A  QUALI-
FIED SCHOOL, AND (IV) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED
GROSS INCOME OF FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER,
FOR  HOUSEHOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL
SHALL BE INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD,  NOT  TO
EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
  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  PUBLIC  SCHOOL
DISTRICT,  (III)  USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIB-
UTIONS RECEIVED DURING THE CALENDAR YEAR AND  ANY  INCOME  DERIVED  FROM
SUCH  QUALIFIED CONTRIBUTIONS 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  SEPA-
RATE  FROM  THE  FUND'S  OPERATING  OR  OTHER FUNDS UNTIL SUCH QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND (V)  IS  APPROVED  TO
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
LOCATED IN THIS  STATE,  OTHER  THAN  A  PUBLIC  SCHOOL,  THAT  PROVIDES
INSTRUCTION  AT  ONE  OR  MORE  LOCATIONS TO STUDENTS IN ACCORDANCE WITH
SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW.
  8. "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC  SCHOOL
DISTRICT, PROVIDED THAT SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT (I)
DEPOSITS  AND  HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM
SUCH 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, AND (II)
IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO  ARTICLE  TWEN-
TY-FIVE OF THE EDUCATION LAW.
  9.  "PUBLIC  SCHOOL"  MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION, AND A CHAR-
TER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE EDUCATION LAW.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A TAXPAYER TO A PUBLIC EDUCATION ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZA-
TION,  LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR
WHICH A CONTRIBUTION AUTHORIZATION CERTIFICATE HAS BEEN  ISSUED  TO  THE

S. 6808                             3

TAXPAYER  AND  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 OR
INSTRUCTOR 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 CHARGED TO ATTEND SUCH SCHOOL LESS  ANY  OTHER
EDUCATIONAL SCHOLARSHIP OR TUITION GRANT RECEIVED BY SUCH ELIGIBLE PUPIL
OR  HIS  OR  HER  PARENT,  PARENTS  OR  LEGAL GUARDIAN FOR SUCH ELIGIBLE
PUPIL'S TUITION; PROVIDED, HOWEVER, IN THE CASE  OF  AN  ELIGIBLE  PUPIL
ATTENDING  A  PUBLIC  SCHOOL  IN  A PUBLIC SCHOOL DISTRICT OF WHICH SUCH
PUPIL IS NOT A RESIDENT, THE AMOUNT OF THE  EDUCATIONAL  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 LESS ANY OTHER EDUCATIONAL  SCHOLARSHIP
OR  TUITION  GRANT RECEIVED BY SUCH ELIGIBLE PUPIL OR HIS OR HER PARENT,
PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S TUITION, BUT ONLY  IF  THE
PUBLIC 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  CALENDAR  YEAR  AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIB-
UTIONS 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 SUCH 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  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 OR TWENTY-TWO OF THIS CHAPTER SHALL  BE  ALLOWED  CREDIT  AGAINST
SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF
THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS  MADE  DURING  THE
TAXABLE YEAR.
  (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT
OF  THE  TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS, CAPPED AT ONE MILLION
DOLLARS.  A TAXPAYER THAT IS A PARTNER IN A  PARTNERSHIP,  MEMBER  OF  A
LIMITED  LIABILITY  COMPANY  OR SHAREHOLDER IN AN S CORPORATION SHALL BE
ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER-
SHIP, LIMITED LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT  SUCH  A
TAXPAYER  SHALL  NOT  CLAIM CREDIT IN EXCESS OF THE LIMIT IMPOSED BY THE
PRECEDING SENTENCE.
  (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE. BEGINNING ON
THE SIXTEENTH DAY OF JANUARY OF EACH YEAR, THE COMMISSIONER SHALL  MAIN-

S. 6808                             4

TAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE AMOUNT OF AVAIL-
ABLE  CREDIT  FOR  WHICH  TAXPAYERS  MAY APPLY PURSUANT TO THIS SECTION.
SUCH RUNNING TOTAL SHALL BE UPDATED ON A DAILY BASIS. ADDITIONALLY,  THE
COMMISSIONER  SHALL  MAINTAIN  ON THE DEPARTMENT'S WEBSITE A LIST OF THE
SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND  EDUCATIONAL
SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE  CERTIFICATES OF RECEIPT
PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW.  THE  COMMISSIONER
SHALL  ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A LIST OF PUBLIC EDUCA-
TION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL  EDUCATION  FUNDS
AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  WHOSE  APPROVAL  TO  ISSUE
CERTIFICATES OF RECEIPT HAS BEEN REVOKED ALONG WITH  THE  DATE  OF  SUCH
REVOCATION.
  (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING  A  CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION, THE TAXPAYER SHALL APPLY TO  THE  DEPARTMENT  FOR  A  CONTRIBUTION
AUTHORIZATION  CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL
BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE  DEPARTMENT
MAY  ALLOW  TAXPAYERS  TO  MAKE  MULTIPLE APPLICATIONS ON THE SAME FORM,
PROVIDED THAT EACH CONTRIBUTION LISTED  ON  SUCH  APPLICATION  SHALL  BE
TREATED  AS  A  SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE
SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH  APPLICA-
TION.
  (F)  CONTRIBUTION  AUTHORIZATION  CERTIFICATES. 1. ISSUANCE OF CERTIF-
ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
ICATES IN TWO PHASES.  IN PHASE ONE, WHICH BEGINS ON THE  FIRST  DAY  OF
JANUARY AND ENDS ON THE FIFTEENTH DAY OF JANUARY, THE COMMISSIONER SHALL
ACCEPT  APPLICATIONS  FOR  CONTRIBUTION  AUTHORIZATION  CERTIFICATES BUT
SHALL NOT ISSUE ANY SUCH CERTIFICATES.  COMMENCING AFTER  THE  SIXTEENTH
DAY  OF JANUARY, THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION
CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE,  PROVIDED  THAT
IF  THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR WHICH APPLICATIONS HAVE
BEEN RECEIVED DURING PHASE ONE EXCEEDS THE AMOUNT OF THE CREDIT  CAP  IN
SUBDIVISION  (H)  OF  THIS  SECTION,  THE AUTHORIZED CONTRIBUTION AMOUNT
LISTED ON EACH CONTRIBUTION AUTHORIZATION CERTIFICATE  SHALL  EQUAL  THE
PRO-RATA  SHARE  OF  THE CREDIT CAP.  IF THE CREDIT CAP IS NOT EXCEEDED,
PHASE  TWO  COMMENCES  ON  FEBRUARY  FIRST  AND  ENDS  ON  THE  DECEMBER
THIRTY-FIRST.  THE  COMMISSIONER  SHALL ISSUE CONTRIBUTION AUTHORIZATION
CERTIFICATES ON A FIRST-COME FIRST SERVE BASIS BASED UPON THE  DATE  THE
DEPARTMENT  RECEIVED  THE  TAXPAYER'S  APPLICATION FOR SUCH CERTIFICATE;
PROVIDED, HOWEVER, THAT IF ON ANY DAY THE DEPARTMENT  RECEIVES  APPLICA-
TIONS  REQUESTING  CONTRIBUTION  AUTHORIZATION CERTIFICATES FOR CONTRIB-
UTIONS THAT IN THE AGGREGATE EXCEED THE AMOUNT OF THE CREDIT CAP ON SUCH
DAY, THE AUTHORIZED CONTRIBUTION  AMOUNT  LISTED  IN  EACH  CONTRIBUTION
AUTHORIZATION  CERTIFICATE SHALL BE THE TAXPAYER'S PRO-RATA SHARE OF THE
CREDIT CAP. FOR PURPOSES OF DETERMINING A TAXPAYER'S PRO-RATA  SHARE  OF
CREDIT  CAP, THE COMMISSIONER SHALL MULTIPLY THE AMOUNT OF CREDIT CAP BY
A FRACTION, THE NUMERATOR OF WHICH EQUALS THE TOTAL CONTRIBUTION  AMOUNT
LISTED ON THE TAXPAYER'S APPLICATION AND THE DENOMINATOR OF WHICH EQUALS
THE  AGGREGATE  AMOUNT  OF  CONTRIBUTIONS LISTED ON THE APPLICATIONS FOR
CONTRIBUTION AUTHORIZATION  CERTIFICATES  WERE  RECEIVED  ON  SUCH  DAY.
CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
PHASE  ONE  SHALL  BE MAILED NO LATER THAN THE TWENTIETH DAY OF JANUARY.
CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
PHASE TWO SHALL BE MAILED WITHIN FIVE DAYS OF RECEIPT OF  SUCH  APPLICA-
TIONS.  PROVIDED,  HOWEVER,  THAT  NO CONTRIBUTION AUTHORIZATION CERTIF-

S. 6808                             5

ICATES FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE ISSUED  UNTIL
ALL  OF  THE  CONTRIBUTION  AUTHORIZATION  CERTIFICATES FOR APPLICATIONS
RECEIVED DURING PHASE ONE HAVE BEEN ISSUED.
  2.  CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION
AUTHORIZATION CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE  WAS
ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
CERTIFICATE  MUST BE MADE, WHICH SHALL BE NO LATER THAN NOVEMBER THIRTI-
ETH OF THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIFICATE WAS
ISSUED, (III) THE AMOUNT OF AUTHORIZED CONTRIBUTION,  (IV)  THE  CERTIF-
ICATE  NUMBER,  (V)  THE  TAXPAYER'S NAME AND ADDRESS, (VI) THE NAME AND
ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,
LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP  ORGANIZATION  TO  WHICH
THE  TAXPAYER  MAY MAKE THE AUTHORIZED CONTRIBUTION, AND (VII) ANY OTHER
INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
  3. NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE.  UPON  THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIF-
ICATE TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC  EDUCATION
ENTITY,  SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION OF THE  ISSUANCE  OF  SUCH  CONTRIBUTION
AUTHORIZATION  CERTIFICATE.  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 MADE BY  THE  TAXPAYER,  (IV)  THE  AMOUNT  OF  THE
AUTHORIZED  CONTRIBUTION,  (V)  THE  CONTRIBUTION  AUTHORIZATION CERTIF-
ICATE'S CERTIFICATE NUMBER, AND (VI)  ANY  OTHER  INFORMATION  THAT  THE
COMMISSIONER DEEMS NECESSARY.
  (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
SCHOOL  IMPROVEMENT  ORGANIZATION,  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,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  HAS  BEEN  APPROVED  TO ISSUE CERTIFICATES OF
RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO  PUBLIC
EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
OR  EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  SHALL ISSUE A CERTIFICATE OF
RECEIPT FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC  EDUCA-
TION  ENTITY,  SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
DEPARTMENT THAT THE DEPARTMENT ISSUED A CREDIT AUTHORIZATION CERTIFICATE
TO THE TAXPAYER FOR SUCH CONTRIBUTION.
  2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
TO  THE  PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL
EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER  NO  LATER
THAN  THE  DATE  BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE
MADE, SUCH PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZATION,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL,
WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION,  ISSUE  TO
THE  TAXPAYER  A  CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE
TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE  AMOUNT  LISTED  ON
THE  TAXPAYER'S  CONTRIBUTION  AUTHORIZATION  CERTIFICATE,  THE TAXPAYER
SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
  3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
STATE  (I)  THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION,  (II)  THE TAXPAYER'S NAME AND ADDRESS, (III)

S. 6808                             6

THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND
THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
TOTAL AMOUNT OF CONTRIBUTIONS, (VI) CERTIFICATE OF  RECEIPT  NUMBER  AND
(VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
  4. 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, SCHOOL IMPROVEMENT ORGANIZATION,  LOCAL  EDUCA-
TION  FUND, OR EDUCATIONAL SCHOLARSHIP 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.
  5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL  IMPROVEMENT  ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) 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 TO MAKE THE AUTHORIZED CONTRIB-
UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE
FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
  6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
ERY OF THE FAILURE OF ANY PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT
PROGRAM,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
TO COMPLY WITH THE NOTIFICATION REQUIREMENTS  PRESCRIBED  BY  PARAGRAPHS
FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
OF  COMPLIANCE  FAILURE  TO SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION.
SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS  FROM
THE  DATE  OF  SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARA-
GRAPHS FOUR AND FIVE OF THIS SUBDIVISION. SUCH PERIOD  MAY  BE  EXTENDED
FOR  AN  ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM,
FUND, OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE  SET
FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL
NOTIFY  THE BOARD OF REGENTS AND THE COMMISSIONER OF EDUCATION THAT SUCH
ENTITY, PROGRAM, FUND, OR ORGANIZATION FAILED TO MAKE THE  NOTIFICATIONS
PRESCRIBED BY PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
  (H)  CREDIT  CAP.  THE  MAXIMUM  PERMITTED  CREDITS UNDER THIS SECTION
AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
TWO THOUSAND FIFTEEN SHALL BE ONE  HUNDRED  FIFTY  MILLION  DOLLARS.  IN
CALENDAR  YEAR TWO THOUSAND SIXTEEN, THE MAXIMUM PERMITTED CREDITS UNDER
THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE
MILLION DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE  ADDED  TO  THE
CAP  PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  FOR CALENDAR YEAR TWO
THOUSAND SEVENTEEN  AND  EACH  CALENDAR  YEAR  THEREAFTER,  THE  MAXIMUM
PERMITTED  CREDITS  AVAILABLE  TO  ALL  TAXPAYERS SHALL BE THREE HUNDRED
MILLION DOLLARS.  THE MAXIMUM PERMITTED CREDITS UNDER THIS  SECTION  FOR
QUALIFIED  CONTRIBUTIONS  SHALL  BE  ALLOCATED  FIFTY  PERCENT TO PUBLIC
EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, AND  LOCAL  EDUCA-
TION FUNDS AND FIFTY PERCENT TO EDUCATIONAL SCHOLARSHIP ORGANIZATIONS.
  (I)  ADDITIONS  TO  CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT.  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 (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
  (J) OTHER REQUIREMENTS; MISCELLANEOUS. 1. RECORD KEEPING. EACH TAXPAY-
ER SHALL, FOR EACH TAXABLE YEAR FOR WHICH THE EDUCATION  INVESTMENT  TAX

S. 6808                             7

CREDIT  PROVIDED  FOR UNDER THIS SECTION IS CLAIMED, MAINTAIN RECORDS OF
THE FOLLOWING INFORMATION: (I) CONTRIBUTION  AUTHORIZATION  CERTIFICATES
OBTAINED  PURSUANT  TO SUBDIVISION (F) OF THIS SECTION, AND (II) CERTIF-
ICATES OF RECEIPT OBTAINED PURSUANT TO SUBDIVISION (G) 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.
  (K) REPORTS. 1. REPORTS TO THE COMMISSIONER. ON OR BEFORE THE LAST DAY
OF  JANUARY FOR EACH CALENDAR YEAR, EACH PUBLIC EDUCATION ENTITY, SCHOOL
IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, AND EDUCATIONAL SCHOLAR-
SHIP 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.
  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  CREDIT.  SUCH
REPORT  SHALL  CONTAIN  INFORMATION  FOR ARTICLES NINE-A AND TWENTY-TWO,
RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLICATIONS  RECEIVED;  (II)
THE  NUMBER  OF  AND  AGGREGATE  VALUE OF THE CONTRIBUTION AUTHORIZATION
CERTIFICATES ISSUED FOR  CONTRIBUTIONS  TO  PUBLIC  EDUCATION  ENTITIES,
SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND SCHOLARSHIP
ORGANIZATIONS,  RESPECTIVELY;  (III)  THE  GEOGRAPHICAL  DISTRIBUTION BY
COUNTY OF (A) THE APPLICATIONS FOR  CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATES,  DISTRIBUTION  BY  COUNTY  OF (B) THE PUBLIC EDUCATION ENTITIES,
SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL
SCHOLARSHIP ORGANIZATIONS LISTED ON  THE  ISSUED  CONTRIBUTION  AUTHORI-
ZATION   CERTIFICATES;  AND  (IV)  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 SCHOLARSHIPS, AND THE AVERAGE VALUE OF  SCHOL-
ARSHIPS  RECEIVED  BY  SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND DESIG-
NATED 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 SCHOOL
IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND EDUCATIONAL  SCHOL-
ARSHIP  ORGANIZATIONS  THAT  APPLIED  FOR  APPROVAL  TO BE AUTHORIZED TO
RECEIVE QUALIFIED CONTRIBUTIONS;  AND  THE  PUBLIC  EDUCATION  ENTITIES,
SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL
SCHOLARSHIP  ORGANIZATIONS  AUTHORIZED TO ISSUE CERTIFICATES OF RECEIPT,
INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM APPLICATION FORMS AND
REPORTS SUBMITTED TO THE DEPARTMENT OF EDUCATION OR BOARD OF REGENTS.
  (L) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  1. ARTICLE 9-A: SECTION 210; SUBDIVISION 48;
  2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (XX).
  S  3.  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 A CREDIT IS
CLAIMED PURSUANT TO SUBDIVISION FORTY-EIGHT OF SECTION TWO  HUNDRED  TEN
OF THIS ARTICLE.

S. 6808                             8

  S 4. Section 210 of the tax law is amended by adding a new subdivision
48 to read as follows:
  48.  EDUCATION  INVESTMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION FORTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (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 NOT DEDUC-
TIBLE  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  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause  (xxxvii)  to  read  as
follows:
(XXXVII) EDUCATION INVESTMENT        AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (XX)     FORTY-EIGHT OF SECTION TWO HUNDRED
                                     TEN
  S  6.  Section  606  of  the  tax  law  is  amended  by adding two new
subsections (w) and (w-1) to read as follows:
  (W) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT.  (1) FOR TAXABLE  YEARS
BEGINNING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR
THE  PURCHASE  OF  INSTRUCTIONAL MATERIALS APPROVED BY THE DEPARTMENT OF
EDUCATION OR BOARD OF REGENTS FOR USE IN  NON-PUBLIC  HOME-BASED  EDUCA-
TIONAL  PROGRAMS;  PROVIDED,  THAT THE AMOUNT OF CREDIT CLAIMED DOES NOT
EXCEED THE LESSER OF ONE HUNDRED DOLLARS OR ONE HUNDRED PERCENT  OF  THE
COST OF SUCH PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH  THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  (W-1)  INSTRUCTIONAL  MATERIALS  AND SUPPLIES CREDIT.  (1) FOR TAXABLE
YEARS BEGINNING ON AND AFTER JANUARY  FIRST,  TWO  THOUSAND  FIFTEEN,  A
TAXPAYER  SHALL  BE  ALLOWED  A CREDIT EQUAL TO THE LESSER OF THE AMOUNT
PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
AND SUPPLIES, OR TWO HUNDRED DOLLARS; PROVIDED THAT THE  TAXPAYER  IS  A
TEACHER  OR  INSTRUCTOR  IN  A  QUALIFIED  SCHOOL, AS DEFINED IN SECTION
FORTY-ONE OF THIS CHAPTER, FOR AT LEAST  NINE  HUNDRED  HOURS  DURING  A
SCHOOL  YEAR.  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND
SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE
CLASSROOM IN ANY QUALIFIED SCHOOL.
  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN

S. 6808                             9

ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  7. Section 606 of the tax law is amended by adding a new subsection
(xx) to read as follows:
  (XX) EDUCATION INVESTMENT TAX  CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-ONE 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  8.  Subdivision  (c)  of  section  615 of the tax law is amended by
adding a new paragraph 9 to read as follows:
  (9) THE AMOUNT OF ANY FEDERAL DEDUCTION  FOR  CONTRIBUTIONS  MADE  FOR
WHICH  A  TAXPAYER  CLAIMS A CREDIT UNDER SUBSECTION (XX) OF SECTION SIX
HUNDRED SIX OF THIS ARTICLE.
  S 9. 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. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1215. REPORTING AND RECORDKEEPING.
        1216. JOINT ANNUAL REPORT.
        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
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; OR (C) USE OF SPECIALIZED INSTRUCTIONAL  MATERIALS,  INSTRUCTORS
OR INSTRUCTION NOT PROVIDED BY A PUBLIC SCHOOL.
  (4)  "EDUCATIONAL  SCHOLARSHIP  ORGANIZATION"  MEANS  A NOT-FOR-PROFIT
ENTITY WHICH (A) IS  EXEMPT  FROM  TAXATION  UNDER  PARAGRAPH  THREE  OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE,

S. 6808                            10

(B)  USES AT LEAST NINETY PERCENT OF THE REVENUE FROM QUALIFIED CONTRIB-
UTIONS RECEIVED DURING THE CALENDAR YEAR AND  ANY  INCOME  DERIVED  FROM
QUALIFIED  CONTRIBUTIONS FOR SCHOLARSHIPS, (C) DEPOSITS AND HOLDS QUALI-
FIED  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 (D) PROVIDES SCHOLARSHIPS TO ELIGIBLE PUPILS FOR USE AT  NO
FEWER THAN THREE QUALIFIED SCHOOLS.
  (5)  "ELIGIBLE  PUPIL"  MEANS  A  CHILD  WHO (A) IS A RESIDENT OF THIS
STATE, (B) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE  OF  SECTION
THIRTY-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, (C) ATTENDS OR IS ABOUT TO ATTEND A  QUALIFIED
SCHOOL, AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS
INCOME  OF  FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR
HOUSEHOLDS WITH THREE OR MORE  DEPENDENT  CHILDREN,  SUCH  INCOME  LEVEL
SHALL  BE  INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD, NOT TO
EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
  (6) "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A)  IS
EXEMPT  FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (B)  IS  ESTABLISHED  FOR
THE  PURPOSE  OF SUPPORTING AT LEAST ONE PUBLIC SCHOOL, OR PUBLIC SCHOOL
DISTRICT, (C) USES AT LEAST NINETY PERCENT  OF  THE  QUALIFIED  CONTRIB-
UTIONS  RECEIVED  DURING  THE  CALENDAR YEAR AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS TO SUPPORT  THE  PUBLIC  SCHOOL  OR  SCHOOLS  OR
PUBLIC  SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS BEEN ESTABLISHED
TO SUPPORT, AND (D) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS  AND  ANY
INCOME  DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPA-
RATE FROM THE FUND'S OPERATING  OR  OTHER  FUNDS  UNTIL  SUCH  QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
  (7)  "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM  OR  ELEMENTARY,  SECONDARY  SECTARIAN  OR  NONSECTARIAN  SCHOOL
LOCATED  IN  THIS  STATE,  OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING
INSTRUCTION AT ONE OR MORE LOCATIONS TO A  STUDENT  IN  ACCORDANCE  WITH
SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
  (8) "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC SCHOOL
DISTRICT,  PROVIDED  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, AND IS APPROVED
TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  (9)  "PUBLIC  SCHOOL" MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE NEW YORK CONSTITUTION  OR
CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER.
  (10)  "QUALIFIED  CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE
BY A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGAN-
IZATION,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
THAT IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE  ISSUED  TO
THE  TAXPAYER  AND  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  OR
INSTRUCTOR  IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING
A SCHOOL YEAR.
  (12) "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.

S. 6808                            11

  (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 CHARGED TO ATTEND SUCH SCHOOL LESS  ANY  OTHER
EDUCATIONAL SCHOLARSHIP OR TUITION GRANT RECEIVED BY SUCH ELIGIBLE PUPIL
OR  HIS  OR  HER  PARENT,  PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A
PUBLIC SCHOOL IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS  NOT  A
RESIDENT,  THE  AMOUNT  OF  THE EDUCATIONAL 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  LESS  ANY  OTHER EDUCATIONAL SCHOLARSHIP OR TUITION GRANT
RECEIVED BY SUCH ELIGIBLE PUPIL OR HIS OR HER PARENT, PARENTS OR GUARDI-
AN FOR SUCH ELIGIBLE PUPIL'S TUITION, BUT  ONLY  IF  THE  PUBLIC  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 CALENDAR YEAR AND ANY INCOME DERIVED FROM  SUCH  QUALIFIED  CONTRIB-
UTIONS  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 SUCH 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 ISSUE CERTIFICATES OF
RECEIPT PURSUANT TO THIS ARTICLE. 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 PROVIDED,
THAT A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED  IF
EITHER  (A) THE 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 SEPARATE FROM THE SCHOOL OR SCHOOL
DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
OR INCOME ARE WITHDRAWN FOR USE, OR (B) THE BOARD OF REGENTS HAS REVOKED
SUCH  APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT PURSUANT
TO SECTION TWELVE HUNDRED FOURTEEN 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 OF THIS  ARTICLE  AND  RECEIVING  APPROVAL
PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
  S  1212.  APPLICATIONS  FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP  ORGANIZA-
TION,  AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE BOARD
OF REGENTS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND
MANNER PRESCRIBED BY THE BOARD.

S. 6808                            12

  S 1213. APPLICATION APPROVAL. 1. IN  GENERAL.  THE  BOARD  OF  REGENTS
SHALL  REVIEW EACH APPLICATION 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 THAT FOLLOWS THE
RECEIPT OF SUCH APPLICATION, PROVIDED, HOWEVER THAT IF IT IS NOT PRACTI-
CABLE  FOR THE BOARD TO REVIEW AN APPLICATION THAT IS RECEIVED LESS THAN
THREE DAYS BEFORE A SCHEDULED MEETING, THE BOARD SHALL APPROVE  OR  DENY
SUCH AN APPLICATION AT THE IMMEDIATELY FOLLOWING SCHEDULED MEETING.
  2. NOTIFICATION. APPLICANTS SHALL BE NOTIFIED OF THE BOARD OF REGENTS'
DETERMINATION WITHIN THREE BUSINESS DAYS OF THE BOARD'S DETERMINATION.
  S  1214.  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  FORTY-ONE  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  OR  SECTION
FORTY-ONE  OF THE TAX LAW, (2) THE FAILURE TO MAINTAIN FULL AND ADEQUATE
RECORDS WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS, (3)  THE
FAILURE  TO SUPPLY SUCH RECORDS TO THE COMMISSIONER, DEPARTMENT OF TAXA-
TION AND FINANCE OR BOARD OF REGENTS WHEN REQUESTED BY THE DEPARTMENT OR
BOARD, OR (4) THE FAILURE TO PROVIDE NOTICE TO THE DEPARTMENT  OF  TAXA-
TION  AND  FINANCE  OF  THE  ISSUANCE  OR NONISSUANCE OF CERTIFICATES OF
RECEIPT PURSUANT TO SECTION FORTY-ONE OF THE TAX LAW; PROVIDED  HOWEVER,
THAT  THE  BOARD  OF  REGENTS SHALL NOT REVOKE APPROVAL PURSUANT TO THIS
SECTION BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE COMMISSIONER OF
TAXATION AND FINANCE AGREES THAT REVOCATION IS WARRANTED;  AND  PROVIDED
FURTHER  THAT  THE  BOARD  SHALL  NOT  REVOKE  APPROVAL PURSUANT TO THIS
SECTION WHEN THE FAILURE TO COMPLY IS DUE  TO  CLERICAL  ERROR  AND  NOT
NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE LAW. WITHIN FIVE DAYS OF THE
DETERMINATION  REVOKING APPROVAL, THE BOARD SHALL PROVIDE NOTICE OF SUCH
REVOCATION TO THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL  IMPROVE-
MENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL
DISTRICT AND TO THE DEPARTMENT OF TAXATION AND FINANCE.
  S  1215.  REPORTING AND RECORDKEEPING. 1. EACH EDUCATIONAL SCHOLARSHIP
ORGANIZATION, LOCAL EDUCATION  FUND,  SCHOOL  IMPROVEMENT  ORGANIZATION,
PUBLIC  SCHOOL  AND  PUBLIC  SCHOOL  DISTRICT  THAT  RECEIVES  QUALIFIED
CONTRIBUTIONS SHALL REPORT TO THE COMMISSIONER AND THE BOARD OF  REGENTS
BY  JANUARY  THIRTY-FIRST OF EACH CALENDAR YEAR. SUCH REPORT SHALL BE IN
THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER IN CONSULTATION  WITH
THE BOARD OF REGENTS.
  2.  RECORDKEEPING.   EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL
SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC
SCHOOL DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE  OF  RECEIPT  SHALL
MAINTAIN  RECORDS  INCLUDING (A) NOTIFICATIONS RECEIVED FROM THE DEPART-
MENT OF TAXATION AND FINANCE, (B) NOTIFICATIONS MADE TO  THE  DEPARTMENT
OF TAXATION AND FINANCE, (C) COPIES OF QUALIFIED CONTRIBUTIONS RECEIVED,
(D) COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIBUTIONS, (E) COPIES OF
ISSUED  CERTIFICATES OF RECEIPT, (F) ANNUAL FINANCIAL STATEMENTS, (G) IN
THE CASE OF SCHOOL IMPROVEMENT  ORGANIZATIONS,  EDUCATIONAL  SCHOLARSHIP
ORGANIZATIONS  AND  LOCAL  EDUCATION  FUNDS,  THE  APPLICATION SUBMITTED
PURSUANT TO SECTION TWELVE  HUNDRED  TWELVE  OF  THIS  ARTICLE  AND  THE
APPROVAL  ISSUED  BY THE BOARD OF REGENTS, AND (H) ANY OTHER INFORMATION

S. 6808                            13

AS PRESCRIBED BY REGULATION PROMULGATED  BY  THE  COMMISSIONER  OR  RULE
PROMULGATED BY THE BOARD OF REGENTS.
  S 1216. 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 (K) OF SECTION FORTY-ONE OF THE TAX LAW.
  S  1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON AN
EMERGENCY BASIS REGULATIONS NECESSARY FOR  THE  IMPLEMENTATION  OF  THIS
SECTION.  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 10. 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 11. 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 12. This act shall take effect immediately and shall apply to  taxa-
ble years beginning after December 31, 2014.

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