NY State Senate Bill 2009-S5444

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
May 06, 2009	referred to investigations and government operations

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2009-S5444 (ACTIVE) - Details

See Assembly Version of this Bill:: A5628
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 210, Tax L
Versions Introduced in 2011-2012 Legislative Session:: S1640

2009-S5444 (ACTIVE) - Summary

Enacts the educational tax incentives act; provides a tax credit for contributions made to public education entities or to a local education fund; requires the department of taxation and finance to prepare and submit a report regarding such tax credits.

2009-S5444 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5444

 TITLE OF BILL :
An act to amend the tax law, in relation to permitting a credit to be
taken against taxes owed to the state on income, such credit to offset
contributions to a public school district or a public school in this
state, to a local education fund, or to an educational scholarship
organization, or for the purchase of instructional materials and
classroom supplies for schools and non-public home-based education
programs


 PURPOSE :
This bill would authorize a personal tax credit up to $80 and a
corporate tax credit up to $2,160 for contributions to public
education entities, or a personal tax credit up to $60 and a corporate
tax credit up $1,800 for contributions to charitable organizations
which offer tuition assistance, or up to $60 for expenses incurred by
school personnel and parents who educate their children at home.

 SUMMARY OF PROVISIONS :
This bill would permit individual public schools, including charter
schools, to accept and receive voluntary cash contributions. * It also
amends section 606 of the tax law to define a local education fund as
a charitable organization in this state that is exempt from federal
taxation under section 501(c)(3) of the Internal Revenue Code and is

established for the specific purpose of supporting public education
within a specific public school district; a school tuition
organization as a charitable organization in this state that is exempt
from federal taxation under section 501(c)(3) of the Internal Revenue
Code, allocates at least ninety percent of its annual expenditures for
financial assistance to students in order that they may attend an
eligible non-public school, and provides such assistance to students
in more than one such school. * It adds subsections to section 606 to
allow a 66 2/3% tax credit up to $80 in any taxable year for voluntary
cash contributions to public education entities, or for cash
contributions to local education funds, and to allow a 50% tax credit
up to $60 for cash contributions to school tuition organizations, or
for the purchase of instructional materials and classroom supplies for
schools or non-public home-based instruction. Contributions to local
education funds or to school tuition organizations may not be
designated for the direct benefit of any particular student. * It
would also add a subsection to section 210 of the tax law to allow a
60% credit up to $2,160 for cash contributions to public education
entities or to local education funds, or a 50% credit for
contributions to school tuition organizations. A subsection is also
added to section 210 to establish a formula for assisting low-wealth
school districts.

 JUSTIFICATION :
The state is considering ways of reducing the tax burden for New York
residents, while educators are seeking an expansion of financial
resources; permitting public education entities such as school
districts and individual public schools, including charter schools 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 sanctioned
educational enterprise, promotes the state's interest in providing the
highest quality education to all children in the state; requiring a
sharing of resources among school districts will insure a more
equitable distribution of financial support; permitting school
personnel to claim a credit for the purpose of classroom instructional
materials and supplies for all students; the tax credit provided in
this section is merely one of many credits available to New York
taxpayers; the intended beneficiaries of this credit are students who

attend public schools, non-public schools and who are educated at
home.

 LEGISLATIVE HISTORY :
New Bill.

 FISCAL IMPLICATIONS :
The Department of Taxation & Finance has projected a first-year
revenue reduction of $125 million. Independent analysis has projected
$200 million would go to support education, including an estimated
$160 million to public education, $35 million more than the cost to
the state.

 EFFECTIVE DATE :
This act shall take effect on the first day of January next succeeding
the date on which it shall have become a law.

2009-S5444 (ACTIVE) - Bill Text download pdf

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

                                  5444

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               May 6, 2009
                               ___________

Introduced  by Sens. SAMPSON, HASSELL-THOMPSON, HUNTLEY, ONORATO -- 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, in relation to permitting a credit to be
  taken against taxes owed to the state on income, such credit to offset
  contributions to a public school district or a public school  in  this
  state,  to  a  local  education fund, or to an educational scholarship
  organization, or for  the  purchase  of  instructional  materials  and
  classroom  supplies  for  schools  and non-public home-based education
  programs

  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 "educational tax incentives act".
  S 2. Legislative findings and intent. The legislature hereby finds and
declares that:
  a. 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 stimulated;
  b.  Permitting  public education entities such as school districts and
individual public schools, including  charter  schools,  to  accept  and
receive voluntary cash contributions will lessen the need for additional
tax revenue;
  c.  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;
  d. Requiring a sharing of resources among school districts will insure
a more equitable distribution of financial support;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07051-01-9

S. 5444                             2

  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 credit provided in this act
are the students who attend public schools, including  charter  schools,
or  who  further their educations using tuition scholarships from educa-
tional scholarship  organizations,  or  who  participate  in  home-based
educational  programs;  therefore  the  tax  credit  does not constitute
public aid to non-public sectarian institutions;
  g. 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.
  S 3. Section 606 of  the  tax  law  is  amended  by  adding  five  new
subsections (u), (v), (w), (w-1) and (w-2) to read as follows:
  (U)  DEFINITIONS.  AS USED IN SUBSECTIONS (V), (W), (W-1) AND (W-2) OF
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "PUBLIC EDUCATION ENTITY" SHALL MEAN ANY PUBLIC SCHOOL DISTRICT OR
ANY INDIVIDUAL PUBLIC SCHOOL, INCLUDING ANY CHARTER SCHOOL.
  (2) "LOCAL EDUCATION FUND" SHALL MEAN  A  CHARITABLE  ORGANIZATION  IN
THIS STATE THAT:
  (A)  IS  EXEMPT  FROM  FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE
INTERNAL REVENUE CODE; AND
  (B) IS ESTABLISHED FOR  THE  EXPLICIT  PURPOSE  OF  SUPPORTING  PUBLIC
EDUCATION WITHIN A SPECIFIC PUBLIC SCHOOL DISTRICT.
  (3)  "EDUCATIONAL  SCHOLARSHIP  ORGANIZATION"  SHALL MEAN A CHARITABLE
ORGANIZATION IN THIS STATE THAT:
  (A) IS EXEMPT FROM FEDERAL TAXATION UNDER  SECTION  501(C)(3)  OF  THE
INTERNAL REVENUE CODE; AND
  (B)  ALLOCATES  AT LEAST NINETY PERCENT OF ITS ANNUAL EXPENDITURES FOR
EDUCATIONAL SCHOLARSHIPS OR TUITION GRANTS TO CHILDREN ALLOWING THEM  TO
ATTEND  ANY  ELIGIBLE  NON-PUBLIC  SCHOOL AND/OR TO RECEIVE TUTORING AND
MENTORING SERVICES IN AN ELIGIBLE NON-PUBLIC SCHOOL, OR FOR OTHER EDUCA-
TIONAL PURPOSES; AND
  (C) MAKES EDUCATIONAL SCHOLARSHIPS, WHICH MAY INCLUDE SCHOLARSHIPS FOR
TUTORING AND MENTORING SERVICES, OR TUITION GRANTS AVAILABLE TO CHILDREN
FROM MORE THAN ONE PUBLIC OR ELIGIBLE NON-PUBLIC SCHOOL; AND
  (D) REPORTS ANNUALLY TO THE DEPARTMENT THE GROSS  RECEIPTS  AND  GROSS
AMOUNT EXPENDED FOR SCHOLARSHIPS AND TUITION GRANTS.
  (4)  "ELIGIBLE NON-PUBLIC SCHOOL" SHALL MEAN ANY NON-PUBLIC PRIMARY OR
SECONDARY SCHOOL THAT IS LOCATED  IN  THIS  STATE,  THAT  SATISFIES  THE
REQUIREMENTS PRESCRIBED BY LAW FOR NON-PUBLIC SCHOOLS IN THIS STATE, AND
THAT  HAS QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501(C)(3) OF
THE INTERNAL REVENUE CODE.
  (V) CONTRIBUTIONS TO PUBLIC EDUCATION CREDIT. FOR TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, A  CREDIT  IS  ALLOWED
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR VOLUNTARY CASH CONTRIBUTIONS
MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO A PUBLIC EDUCATION ENTI-
TY.  ACCEPTANCE  AND  RECEIPT  OF SUCH CONTRIBUTIONS SHALL BE PERMITTED.
THIS CREDIT SHALL BE VALUED AT SIXTY-SIX AND TWO-THIRDS PERCENT OF  SUCH
CONTRIBUTIONS.
  (1) THE AMOUNT OF THE CREDIT.
  (A) THIS CREDIT SHALL NOT EXCEED EIGHTY DOLLARS IN ANY TAXABLE YEAR.
  (B)  A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER OF A PART-
NERSHIP (OR OTHER  ENTITY  TREATED  AS  A  PARTNERSHIP  FOR  INCOME  TAX
PURPOSES)  SHALL  BE  TREATED AS THE TAXPAYER WITH RESPECT TO HIS OR HER
PRO-RATA SHARE OF THE TAX CREDIT ALLOWABLE  TO  SUCH  S  CORPORATION  OR
PARTNERSHIP, DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE

S. 5444                             3

YEAR  ENDING WITH OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE YEAR.
THE MAXIMUM AMOUNT OF THE CREDIT FOR SUCH S CORPORATION  OR  PARTNERSHIP
SHALL  BE  THE SAME AS THAT ALLOWABLE TO CORPORATIONS UNDER SUBDIVISIONS
FORTY-TWO AND FORTY-THREE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (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 ALLOWABLE TAX CREDIT EXCEEDS THE TAXES OTHERWISE DUE  UNDER
THIS  ARTICLE  ON  THE  TAXPAYER'S  INCOME, OR IF THERE ARE NO TAXES DUE
UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE AMOUNT OF THE CREDIT  NOT
USED  TO  OFFSET  THE TAXES UNDER THIS ARTICLE FORWARD FOR NOT MORE THAN
FIVE YEARS' INCOME TAX LIABILITY.
  (4) CONTRIBUTIONS IN EXCESS OF ONE HUNDRED TWENTY DOLLARS IN ANY TAXA-
BLE YEAR SHALL BE CONSIDERED ELIGIBLE DEDUCTIONS AS ALLOWED  UNDER  THIS
ARTICLE FOR CHARITABLE CONTRIBUTIONS.
  (5) SUCH CONTRIBUTIONS SHALL BE DEPOSITED IN A SEPARATE ACCOUNT.
  (6)  IF  MADE  TO A PUBLIC SCHOOL DISTRICT SUCH CONTRIBUTIONS SHALL BE
SUPERVISED BY A PERSON SO DESIGNATED BY THE  CHANCELLOR  OR  SUPERINTEN-
DENT.  IF  MADE  TO  A PARTICULAR SCHOOL THEY SHALL BE SUPERVISED BY THE
SCHOOL PRINCIPAL. REPORTS OF DEPOSITS AND DISBURSEMENTS SHALL BE MADE TO
THE LOCAL BOARD OF EDUCATION ANNUALLY. CHARTER SCHOOLS SHALL  MAKE  SUCH
REPORTS TO THE STATE EDUCATION DEPARTMENT.
  (W)  CONTRIBUTIONS TO LOCAL EDUCATION CREDIT. IN LIEU OF CONTRIBUTIONS
IN SUBSECTION (V) OF THIS SECTION, A CREDIT IS ALLOWED:
  (1) FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAY-
ER DURING THE TAXABLE YEAR TO A LOCAL EDUCATION FUND. THIS CREDIT  SHALL
BE VALUED AT SIXTY-SIX AND TWO-THIRDS PERCENT OF SUCH CONTRIBUTIONS.
  (A)  THE  AMOUNT OF SUCH CREDIT SHALL NOT EXCEED EIGHTY DOLLARS IN ANY
TAXABLE YEAR. A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER  OF
A  PARTNERSHIP  (OR OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX
PURPOSES) SHALL BE TREATED AS THE TAXPAYER WITH RESPECT TO  HIS  OR  HER
PRO-RATA  SHARE  OF  THE  TAX  CREDIT ALLOWABLE TO SUCH S CORPORATION OR
PARTNERSHIP, DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE
YEAR ENDING WITH OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE  YEAR.
THE  MAXIMUM  AMOUNT OF THE CREDIT FOR SUCH S CORPORATION OR PARTNERSHIP
SHALL BE THE SAME AS THAT ALLOWABLE TO CORPORATIONS  UNDER  SUBDIVISIONS
FORTY-TWO AND FORTY-THREE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (B) 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.
  (C) IF THE ALLOWABLE TAX CREDIT EXCEEDS THE TAXES OTHERWISE DUE  UNDER
THIS  ARTICLE  ON  THE  TAXPAYER'S  INCOME, OR IF THERE ARE NO TAXES DUE
UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE AMOUNT OF THE CREDIT  NOT
USED  TO  OFFSET  THE TAXES UNDER THIS ARTICLE FORWARD FOR NOT MORE THAN
FIVE YEARS' INCOME TAX LIABILITY.
  (D) CONTRIBUTIONS IN EXCESS OF ONE HUNDRED TWENTY DOLLARS IN ANY TAXA-
BLE YEAR SHALL BE CONSIDERED ELIGIBLE DEDUCTIONS AS ALLOWED  UNDER  THIS
ARTICLE FOR CHARITABLE CONTRIBUTIONS.
  (E) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
EDUCATION FUND FOR THE BENEFIT OF A DESIGNATED STUDENT.
  (2) FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAY-
ER  DURING  THE TAXABLE YEAR TO AN EDUCATIONAL SCHOLARSHIP ORGANIZATION.
THIS CREDIT SHALL BE VALUED AT FIFTY PERCENT OF SUCH CONTRIBUTIONS.
  (A) THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED SIXTY  DOLLARS  IN  ANY
TAXABLE  YEAR. A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER OF
A PARTNERSHIP (OR OTHER ENTITY TREATED AS A PARTNERSHIP FOR  INCOME  TAX

S. 5444                             4

PURPOSES)  SHALL  BE  TREATED AS THE TAXPAYER WITH RESPECT TO HIS OR HER
PRO-RATA SHARE OF THE TAX CREDIT ALLOWABLE  TO  SUCH  S  CORPORATION  OR
PARTNERSHIP, DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE
YEAR  ENDING WITH OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE YEAR.
THE MAXIMUM AMOUNT OF THE CREDIT FOR SUCH S CORPORATION  OR  PARTNERSHIP
SHALL  BE  THE SAME AS THAT ALLOWABLE TO CORPORATIONS UNDER SUBDIVISIONS
FORTY-TWO AND FORTY-THREE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (B) 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.
  (C)  IF THE ALLOWABLE TAX CREDIT EXCEEDS THE TAXES OTHERWISE DUE UNDER
THIS ARTICLE ON THE TAXPAYER'S INCOME, OR IF  THERE  ARE  NO  TAXES  DUE
UNDER  THIS ARTICLE, THE TAXPAYER MAY CARRY THE AMOUNT OF THE CREDIT NOT
USED TO OFFSET THE TAXES UNDER THIS ARTICLE FORWARD FOR  NOT  MORE  THAN
FIVE YEARS' INCOME TAX LIABILITY.
  (D) CONTRIBUTIONS IN EXCESS OF ONE HUNDRED TWENTY DOLLARS IN ANY TAXA-
BLE  YEAR  SHALL BE CONSIDERED ELIGIBLE DEDUCTIONS AS ALLOWED UNDER THIS
ARTICLE FOR CHARITABLE CONTRIBUTIONS.
  (E) THIS TAX CREDIT MAY NOT BE CLAIMED  FOR  ANY  CONTRIBUTION  TO  AN
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  FOR  THE BENEFIT OF A DESIGNATED
STUDENT.
  (W-1) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. IN LIEU  OF  CONTRIB-
UTIONS  IN  SUBSECTIONS (V) AND (W) OF THIS SECTION, A CREDIT IS ALLOWED
FOR THE PURCHASE OF INSTRUCTIONAL MATERIALS  FOR  NON-PUBLIC  HOME-BASED
EDUCATIONAL  PROGRAMS.  THIS  CREDIT SHALL BE VALUED AT FIFTY PERCENT OF
SUCH PURCHASES.
  (1) THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED SIXTY  DOLLARS  IN  ANY
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 ALLOWABLE TAX CREDIT EXCEEDS THE TAXES OTHERWISE DUE  UNDER
THIS  ARTICLE  ON  THE  TAXPAYER'S  INCOME, OR IF THERE ARE NO TAXES DUE
UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE AMOUNT OF THE CREDIT  NOT
USED  TO  OFFSET  THE TAXES UNDER THIS ARTICLE FORWARD FOR NOT MORE THAN
FIVE YEARS' INCOME TAX LIABILITY.
  (W-2) CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. A  CREDIT
IS  ALLOWED  FOR  THE  PURCHASE OF CLASSROOM INSTRUCTIONAL MATERIALS AND
SUPPLIES FOR PERSONNEL EMPLOYED IN  ANY  PUBLIC  SCHOOL,  INCLUDING  ANY
CHARTER  SCHOOL, OR IN ANY ELIGIBLE NON-PUBLIC SCHOOL. THIS CREDIT SHALL
BE VALUED AT FIFTY PERCENT OF SUCH PURCHASES. THE AMOUNT OF SUCH  CREDIT
SHALL NOT EXCEED SIXTY DOLLARS IN ANY TAXABLE YEAR.
  S 4. Section 210 of the tax law is amended by adding four new subdivi-
sions 41, 42, 43 and 44 to read as follows:
  41.  DEFINITIONS. AS USED IN SUBDIVISIONS FORTY-TWO AND FORTY-THREE OF
THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "PUBLIC EDUCATION ENTITY" SHALL MEAN ANY PUBLIC SCHOOL DISTRICT OR
ANY INDIVIDUAL PUBLIC SCHOOL, INCLUDING ANY CHARTER SCHOOL.
  (B) "LOCAL EDUCATION FUND" SHALL MEAN  A  CHARITABLE  ORGANIZATION  IN
THIS STATE THAT:
  (1)  IS  EXEMPT  FROM  FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE
INTERNAL REVENUE CODE; AND
  (2) IS ESTABLISHED FOR  THE  EXPLICIT  PURPOSE  OF  SUPPORTING  PUBLIC
EDUCATION WITHIN A SPECIFIC PUBLIC SCHOOL DISTRICT;
  (3)  REPORTS  ANNUALLY  TO THE DEPARTMENT THE GROSS RECEIPTS AND GROSS
AMOUNT EXPENDED IN SUPPORT OF PUBLIC EDUCATION.

S. 5444                             5

  (C) "EDUCATIONAL SCHOLARSHIP ORGANIZATION"  SHALL  MEAN  A  CHARITABLE
ORGANIZATION IN THIS STATE THAT:
  (1)  IS  EXEMPT  FROM  FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE
INTERNAL REVENUE CODE; AND
  (2) ALLOCATES AT LEAST NINETY PERCENT OF ITS ANNUAL  EXPENDITURES  FOR
EDUCATIONAL  SCHOLARSHIPS OR TUITION GRANTS TO CHILDREN ALLOWING THEM TO
ATTEND ANY ELIGIBLE NON-PUBLIC SCHOOL AND/OR  TO  RECEIVE  TUTORING  AND
MENTORING SERVICES IN AN ELIGIBLE NON-PUBLIC SCHOOL, OR FOR OTHER EDUCA-
TIONAL PURPOSES; AND
  (3) MAKES EDUCATIONAL SCHOLARSHIPS, WHICH MAY INCLUDE SCHOLARSHIPS FOR
TUTORING AND MENTORING SERVICES, OR TUITION GRANTS AVAILABLE TO CHILDREN
FROM MORE THAN ONE PUBLIC OR ELIGIBLE NON-PUBLIC SCHOOL; AND
  (4)  REPORTS  ANNUALLY  TO THE DEPARTMENT THE GROSS RECEIPTS AND GROSS
AMOUNT EXPENDED FOR SCHOLARSHIPS AND TUITION GRANTS.
  (D) "ELIGIBLE NON-PUBLIC SCHOOL" SHALL MEAN ANY NON-PUBLIC PRIMARY  OR
SECONDARY  SCHOOL  THAT  IS  LOCATED  IN  THIS STATE, THAT SATISFIES THE
REQUIREMENTS PRESCRIBED BY LAW FOR NON-PUBLIC SCHOOLS IN THIS STATE, AND
THAT HAS QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501(C)(3)  OF
THE INTERNAL REVENUE CODE.
  42. CONTRIBUTIONS TO PUBLIC EDUCATION CREDIT. FOR TAXABLE YEARS BEGIN-
NING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND TEN, A CREDIT IS ALLOWED
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR VOLUNTARY CASH CONTRIBUTIONS
MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO A PUBLIC EDUCATION ENTI-
TY. ACCEPTANCE AND RECEIPT OF SUCH  CONTRIBUTIONS  SHALL  BE  PERMITTED.
THIS CREDIT SHALL BE VALUED AT SIXTY PERCENT OF SUCH CONTRIBUTIONS.
  (A) THE AMOUNT OF THE CREDIT SHALL NOT EXCEED TWO THOUSAND ONE HUNDRED
SIXTY DOLLARS IN ANY TAXABLE YEAR.
  (B) SUCH CONTRIBUTIONS SHALL BE DEPOSITED IN A SEPARATE ACCOUNT.
  (C)  IF  MADE  TO A PUBLIC SCHOOL DISTRICT SUCH CONTRIBUTIONS SHALL BE
SUPERVISED BY A PERSON SO DESIGNATED BY THE  CHANCELLOR  OR  SUPERINTEN-
DENT.  IF  MADE  TO  A PARTICULAR SCHOOL THEY SHALL BE SUPERVISED BY THE
SCHOOL PRINCIPAL. REPORTS OF DEPOSITS AND DISBURSEMENTS SHALL BE MADE TO
THE LOCAL BOARD OF EDUCATION ANNUALLY. CHARTER SCHOOLS SHALL  MAKE  SUCH
REPORTS TO THE STATE EDUCATION DEPARTMENT.
  43.  CONTRIBUTIONS TO LOCAL EDUCATION CREDIT. IN LIEU OF CONTRIBUTIONS
IN SUBDIVISION FORTY-TWO OF THIS SECTION, A CREDIT IS ALLOWED:
  (A) FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAY-
ER DURING THE TAXABLE YEAR TO A LOCAL EDUCATION FUND.
  (1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT SIXTY PERCENT OF SUCH
CONTRIBUTIONS BUT SHALL  NOT  EXCEED  TWO  THOUSAND  ONE  HUNDRED  SIXTY
DOLLARS IN ANY TAXABLE YEAR.
  (2) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
EDUCATION FUND FOR THE BENEFIT OF A DESIGNATED STUDENT.
  (B) FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAY-
ER DURING THE TAXABLE YEAR TO AN EDUCATIONAL SCHOLARSHIP ORGANIZATION.
  (1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT FIFTY PERCENT OF SUCH
CONTRIBUTIONS BUT SHALL NOT EXCEED ONE THOUSAND EIGHT HUNDRED DOLLARS IN
ANY TAXABLE YEAR.
  (2)  THIS  TAX  CREDIT  MAY  NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE  BENEFIT  OF  A  DESIGNATED
STUDENT.
  44.  SCHOOL DISTRICTS RECEIVING CONTRIBUTIONS IN EXCESS OF ONE PERCENT
OF THEIR PREVIOUS YEAR'S BUDGET SHALL BE REQUIRED TO REMIT A MINIMUM  OF
THIRTY-FIVE  PERCENT OF ANY SUCH EXCESS AMOUNT TO A FUND ADMINISTERED BY
THE COMMISSIONER, TO BE DISTRIBUTED TO SCHOOL DISTRICTS  RECEIVING  LESS
THAN  ONE-HALF OF ONE PERCENT OF THEIR PREVIOUS YEAR'S BUDGET.  CONTRIB-

S. 5444                             6

UTIONS TO SCHOOL DISTRICTS, TO INDIVIDUAL SCHOOLS (NOT INCLUDING CHARTER
SCHOOLS) AND TO LOCAL  EDUCATION  FUNDS  SHALL  BE  AGGREGATED  FOR  THE
PURPOSES  OF THIS SECTION. SUCH PAYMENTS SHALL BE CALCULATED ON A CALEN-
DAR  YEAR  BASIS  AND  SHALL  BE  MADE  NO LATER THAN MARCH FIRST OF THE
FOLLOWING YEAR.
  S 5. The department of taxation and finance shall  prepare  a  written
report  before  January first of each calendar year, which shall contain
statistical  information  regarding  the  credits  allowed  pursuant  to
subsections  (u),  (v), (w), (w-1) and (w-2) of section 606 and subdivi-
sions 41, 42 and 43 of section 210 of the  tax  law  and  regarding  the
collections  and  disbursements  required  pursuant to subdivision 44 of
section 210 of the tax law, as added by sections three and four of  this
act,  for  the  previous  calendar  year. Copies of such report shall be
submitted to the governor, the temporary president of  the  senate,  the
speaker  of  the assembly, the chair of the senate finance committee and
the chair of the assembly ways and means committee. Such  reports  shall
contain,  but  need not be limited to, the number of credits by type and
the amount of such credits allowed to taxpayers and  amounts  of  excess
contributions, by district, collected and disbursed.
  S  6. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

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Senate Bill S5444

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2009-S5444 (ACTIVE) - Details

2009-S5444 (ACTIVE) - Summary

2009-S5444 (ACTIVE) - Sponsor Memo

2009-S5444 (ACTIVE) - Bill Text download pdf

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Senate Bill S5444

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2009-S5444 (ACTIVE) - Details

2009-S5444 (ACTIVE) - Summary

2009-S5444 (ACTIVE) - Sponsor Memo

2009-S5444 (ACTIVE) - Bill Text download pdf

Comments