S T A T E O F N E W Y O R K
________________________________________________________________________
5081--B
2011-2012 Regular Sessions
I N A S S E M B L Y
February 11, 2011
___________
Introduced by M. of A. CUSICK, THIELE, MARKEY, RAIA, MALLIOTAKIS, KELL-
NER, JAFFEE, LAVINE, ESPINAL, ROBINSON, GOLDFEDER, SIMANOWITZ, SCAR-
BOROUGH, ROBERTS, BROOK-KRASNY -- Multi-Sponsored by -- M. of A.
BOYLAND, CORWIN, CRESPO, CURRAN, CYMBROWITZ, ENGLEBRIGHT, GIBSON,
HIKIND, KOLB, LANCMAN, LATIMER, McENENY, P. RIVERA, SCHIMEL, SCHIM-
MINGER, TITONE, WEISENBERG -- read once and referred to the Committee
on Higher Education -- reference changed to the Committee on Ways and
Means -- recommitted to the Committee on Ways and Means in accordance
with Assembly Rule 3, sec. 2 -- 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, in relation to enacting 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. 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05643-10-2
A. 5081--B 2
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;
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 six new
subsections (u), (v), (w), (w-1), (w-2) and (w-3) to read as follows:
(U) DEFINITIONS. AS USED IN SUBSECTIONS (V), (W), (W-1), (W-2) AND
(W-3) 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; A NONPROFIT
ORGANIZATION FOR THE PURPOSE OF PROVIDING PROGRAMMING FOR PERFORMING
ARTS, VISUAL ARTS, CIVIC INSTRUCTION, PRE-KINDERGARTEN INSTRUCTION, OR
ANY OTHER EDUCATIONAL PURPOSE WITHIN SUCH SCHOOLS; A NONPROFIT ORGANIZA-
TION THAT ALLOWS DONORS TO CHOOSE SCHOOL PROJECTS FOR CHARITABLE SUPPORT
THAT ARE IDENTIFIED BY TEACHERS OR OTHER SCHOOL PERSONNEL; AND THE
UNIVERSITY OF THE STATE OF NEW YORK RESEARCH FUND.
(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;
(B) ALLOCATES AT LEAST NINETY PERCENT OF DONATIONS FOR WHICH TAX CRED-
ITS ARE CLAIMED UNDER SUBSECTION (W-3) OF THIS SECTION FOR EDUCATIONAL
SCHOLARSHIPS;
(C) MAKES EDUCATIONAL SCHOLARSHIPS 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 AN INDEPENDENT SECTARIAN
OR NON-SECTARIAN PRIMARY OR SECONDARY SCHOOL OR PRE-KINDERGARTEN PROGRAM
THAT IS LOCATED IN THIS STATE, THAT SATISFIES THE REQUIREMENTS
PRESCRIBED BY APPLICABLE LAW FOR SUCH SCHOOLS IN THIS STATE, AND THAT
HAS QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501 (C)(3) OF THE
INTERNAL REVENUE CODE.
(5) "AUTHORIZED CERTIFICATE OF RECEIPT" SHALL MEAN A CERTIFICATE
DESIGNED BY THE COMMISSIONER FOR THE PURPOSE OF ACKNOWLEDGING RECEIPT OF
A CHARITABLE CONTRIBUTION BY THE CHIEF EXECUTIVE OFFICER OF AN EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION.
A. 5081--B 3
(6) "ELIGIBLE PUPIL" SHALL MEAN A PUPIL WHO IS A RESIDENT OF THE STATE
OF NEW YORK AND OF AGE TO ATTEND SCHOOL 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 THEY
ARE ENROLLED IN A PRE-KINDERGARTEN PROGRAM.
(V) CONTRIBUTIONS TO PUBLIC EDUCATION CREDIT. FOR TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A CREDIT IS
ALLOWED FOR VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAYER DURING THE
TAXABLE YEAR TO A PUBLIC EDUCATION ENTITY. ACCEPTANCE AND RECEIPT OF ALL
SUCH CONTRIBUTIONS SHALL BE PERMITTED. A TAXPAYER WHO SUBMITS WITH HIS
OR HER TAX RETURN AN AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE ALLOWED
A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX
IMPOSED BY THIS ARTICLE.
(1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
THE TAXPAYER.
A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER OF A PARTNER-
SHIP (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-SIX,
FORTY-SEVEN AND FORTY-EIGHT 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 SEVENTY-FIVE PERCENT OF 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 ANY TAXABLE YEAR THAT RECEIVE A CREDIT PURSUANT
TO THIS SUBSECTION SHALL NOT BE CONSIDERED ELIGIBLE DEDUCTIONS AS
ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS. CONTRIBUTIONS
IN EXCESS OF SEVENTY-FIVE PERCENT OF A TAXPAYER'S TAX LIABILITY IN ANY
TAXABLE YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGI-
BLE DEDUCTIONS AS ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIB-
UTIONS.
(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 RESPECTIVE CHARTER SCHOOL BOARD OF TRUSTEES, AS APPLICA-
BLE.
(W) CONTRIBUTIONS TO LOCAL EDUCATION FUND CREDIT. IN LIEU OF CONTRIB-
UTIONS IN SUBSECTION (V) OF THIS SECTION, A CREDIT IS ALLOWED FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN FOR
THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAYER DURING
THE TAXABLE YEAR TO A LOCAL EDUCATION FUND. A TAXPAYER WHO SUBMITS WITH
HIS OR HER TAX RETURN AN AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE
A. 5081--B 4
ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE.
(1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
THE TAXPAYER. 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-SIX, FORTY-SEVEN AND FORTY-EIGHT 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 SEVENTY-FIVE PERCENT OF THE
TAXES OTHERWISE DUE UNDER THIS ARTICLE ON THE TAXPAYER'S INCOME, OR IF
THERE ARE 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 ANY TAXABLE YEAR THAT RECEIVE A CREDIT PURSUANT
TO THIS SUBSECTION SHALL BE CONSIDERED ELIGIBLE DEDUCTIONS AS ALLOWED
UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS. CONTRIBUTIONS IN EXCESS
OF SEVENTY-FIVE PERCENT OF A TAXPAYERS' TAX LIABILITY IN ANY TAXABLE
YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGIBLE
DEDUCTIONS AS ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS.
(5) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
EDUCATION FUND 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 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
THIRTEEN FOR THE PURCHASE OF INSTRUCTIONAL MATERIALS FOR NON-PUBLIC
HOME-BASED EDUCATIONAL PROGRAMS. THIS CREDIT SHALL BE VALUED AT ONE
HUNDRED PERCENT OF SUCH PURCHASES.
(1) THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED SEVENTY-FIVE 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.
(4) IF THE TAXPAYER SHALL BE RESPONSIBLE FOR NOTIFYING THE COMMISSION-
ER OF THE INTENTION TO CLAIM THE ALLOWABLE CREDIT, NO LATER THAN DECEM-
BER THIRTY-FIRST.
(W-2) CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A
CREDIT IS ALLOWED FOR THE PERSONNEL EMPLOYED IN ANY PUBLIC SCHOOL,
INCLUDING ANY CHARTER SCHOOL, OR IN ANY ELIGIBLE NON-PUBLIC SCHOOL FOR
THE PURCHASE OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES.
A. 5081--B 5
(1) THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED SEVENTY-FIVE DOLLARS IN
ANY TAXABLE YEAR.
(2) THE TAXPAYER SHALL BE RESPONSIBLE FOR NOTIFYING THE COMMISSIONER
OF THE INTENTION TO CLAIM THE ALLOWABLE CREDIT, NO LATER THAN DECEMBER
THIRTY-FIRST, INDICATING WHETHER THE PURCHASE WAS MADE FOR USE IN A
PUBLIC SCHOOL, INCLUDING A CHARTER SCHOOL, OR AN ELIGIBLE NON-PUBLIC
SCHOOL.
(W-3) CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATION CREDIT.
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
THIRTEEN, A CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIB-
UTIONS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO AN EDUCATIONAL
SCHOLARSHIP ORGANIZATION. A TAXPAYER WHO SUBMITS WITH HIS OR HER TAX
RETURN AN AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE ALLOWED A CREDIT,
TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
(1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
THE TAXPAYER. 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-SIX, FORTY-SEVEN AND FORTY-EIGHT 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 SEVENTY-FIVE PERCENT OF 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 CREDIT NOT USED TO OFFSET THE TAXES UNDER THIS ARTICLE FORWARD
FOR NOT MORE THAN FIVE YEARS' INCOME TAX LIABILITY.
(4) CONTRIBUTIONS IN ANY TAXABLE YEAR THAT RECEIVE A CREDIT PURSUANT
TO THIS SUBSECTION SHALL NOT BE CONSIDERED ELIGIBLE DEDUCTIONS AS
ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS. CONTRIBUTIONS
IN EXCESS OF SEVENTY-FIVE PERCENT OF A TAXPAYERS' TAX LIABILITY IN ANY
TAXABLE YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGI-
BLE DEDUCTIONS AS ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIB-
UTIONS.
(5) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE BENEFIT OF A DESIGNATED
PUPIL.
(6) SCHOLARSHIP AMOUNT.
(A) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD A SCHOLARSHIP TO A
NON-DISTRICT RESIDENT ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL OPERATED
BY A SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED THE TUITION CHARGED BY
THE PARTICIPATING PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION
FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION LAW, PROVIDED,
HOWEVER THAT A SCHOLARSHIP SHALL NOT BE AVAILABLE IN ANY CASE WHERE THE
RESIDENT DISTRICT OF SUCH PUPIL IS LIABLE FOR SUCH TUITION.
A. 5081--B 6
(B) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD AN ELIGIBLE SCHOL-
ARSHIP TO A PUPIL ENROLLED IN A PUBLIC SCHOOL, INCLUDING A CHARTER
SCHOOL, OR A NON-PUBLIC SCHOOL IN AN AMOUNT NOT TO EXCEED THE TUITION
AMOUNT OF THE ELIGIBLE NON-PUBLIC SCHOOL, PROVIDED, HOWEVER, THAT THE
TOTAL AMOUNT OF SUCH TAX CREDITS SHALL NOT EXCEED THE AMOUNT OF AVAIL-
ABLE TAX CREDITS FOR EDUCATIONAL SCHOLARSHIP ORGANIZATIONS SET FORTH IN
PARAGRAPH SIX OF SUBDIVISION TWENTY-NINTH OF SECTION ONE HUNDRED SEVEN-
TY-ONE OF THIS CHAPTER.
S 4. Section 210 of the tax law is amended by adding four new subdivi-
sions 45, 46, 47 and 48 to read as follows:
45. DEFINITIONS. AS USED IN SUBDIVISIONS FORTY-SIX, FORTY-SEVEN AND
FORTY-EIGHT 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; A NONPROFIT
ORGANIZATION FOR THE PURPOSE OF PROVIDING PROGRAMMING FOR PERFORMING
ARTS, VISUAL ARTS, CIVIC INSTRUCTION, PRE-KINDERGARTEN INSTRUCTION, OR
ANY OTHER EDUCATIONAL PURPOSE WITHIN SUCH SCHOOLS; A NONPROFIT ORGANIZA-
TION THAT ALLOWS DONORS TO CHOOSE SCHOOL PROJECTS FOR CHARITABLE SUPPORT
THAT ARE IDENTIFIED BY TEACHERS OR OTHER SCHOOL PERSONNEL; AND THE
UNIVERSITY OF THE STATE OF NEW YORK RESEARCH FUND.
(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.
(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;
(2) ALLOCATES AT LEAST NINETY PERCENT OF DONATIONS FOR WHICH CREDITS
ARE CLAIMED UNDER SUBDIVISION FORTY-EIGHT OF THIS SECTION FOR EDUCA-
TIONAL SCHOLARSHIPS;
(3) MAKES EDUCATIONAL SCHOLARSHIPS 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 AN INDEPENDENT SECTARIAN
OR NON-SECTARIAN PRIMARY OR SECONDARY SCHOOL OR PRE-KINDERGARTEN PROGRAM
THAT IS LOCATED IN THIS STATE, THAT SATISFIES THE REQUIREMENTS
PRESCRIBED BY APPLICABLE LAW FOR SUCH SCHOOLS IN THIS STATE, AND THAT
HAS QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE
INTERNAL REVENUE CODE.
(E) "AUTHORIZED CERTIFICATE OF RECEIPT" SHALL MEAN A CERTIFICATE
DESIGNED BY THE COMMISSIONER FOR THE PURPOSE OF ACKNOWLEDGING RECEIPT OF
A CHARITABLE CONTRIBUTION BY THE CHIEF EXECUTIVE OFFICER OF A PUBLIC
EDUCATION ENTITY, OR OF A LOCAL EDUCATION FUND OR OF AN EDUCATIONAL
SCHOLARSHIP ORGANIZATION.
(F) "ELIGIBLE PUPIL" SHALL MEAN A PUPIL WHO IS A RESIDENT OF THE STATE
OF NEW YORK AND OF AGE TO ATTEND SCHOOL 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 THEY
ARE ENROLLED IN A PRE-KINDERGARTEN PROGRAM.
46. CONTRIBUTIONS TO PUBLIC EDUCATION CREDIT. (A) FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A CREDIT IS
A. 5081--B 7
ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE
TAXPAYER DURING THE TAXABLE YEAR TO A PUBLIC EDUCATION ENTITY. ACCEPT-
ANCE AND RECEIPT OF ALL SUCH CONTRIBUTIONS SHALL BE PERMITTED. A TAXPAY-
ER WHO SUBMITS WITH HIS OR HER TAX RETURN AN AUTHORIZED CERTIFICATE OF
RECEIPT SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF SUCH
CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT OF THE AMOUNT OF SUCH
CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED SEVENTY-FIVE PERCENT OF
THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE IN THE TAXABLE YEAR,
AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY THE TAXPAYER.
(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 RESPECTIVE CHARTER SCHOOL BOARD OF TRUSTEES.
47. CONTRIBUTIONS TO LOCAL EDUCATION FUND CREDIT. (A) FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A
CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY
THE TAXPAYER DURING THE TAXABLE YEAR TO A LOCAL EDUCATION FUND. A
TAXPAYER WHO SUBMITS WITH HIS OR HER TAX RETURN AN AUTHORIZED CERTIF-
ICATE OF RECEIPT SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFT-
ER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
THE TAXPAYER.
(C) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
EDUCATION FUND FOR THE BENEFIT OF A DESIGNATED STUDENT.
48. CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATION CREDIT. A
CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY
THE TAXPAYER DURING THE TAXABLE YEAR TO AN EDUCATIONAL SCHOLARSHIP
ORGANIZATION. A TAXPAYER WHO SUBMITS WITH HIS OR HER TAX RETURN AN
AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
(A) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED SEVENTY-FIVE
PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE IN THE TAXA-
BLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY THE
TAXPAYER.
(B) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE BENEFIT OF A DESIGNATED
PUPIL.
(C) SCHOLARSHIP AMOUNT. (1) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY
AWARD A SCHOLARSHIP TO A NON-DISTRICT RESIDENT ELIGIBLE PUPIL ATTENDING
A PUBLIC SCHOOL OPERATED BY A SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED
THE TUITION CHARGED BY THE PARTICIPATING PUBLIC SCHOOL PURSUANT TO PARA-
GRAPH D OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE
EDUCATION LAW; PROVIDED, HOWEVER THAT A SCHOLARSHIP SHALL NOT BE AVAIL-
ABLE IN ANY CASE WHERE THE RESIDENT DISTRICT OF SUCH PUPIL IS LIABLE FOR
SUCH TUITION.
(2) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD A SCHOLARSHIP TO A
PUPIL ENROLLED IN A PUBLIC SCHOOL, INCLUDING A CHARTER SCHOOL, OR AN
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ELIGIBLE NON-PUBLIC SCHOOL IN AN AMOUNT NOT TO EXCEED THE TUITION AMOUNT
OF THE ELIGIBLE NON-PUBLIC SCHOOL, PROVIDED, HOWEVER, THAT THE TOTAL
AMOUNT OF SUCH TAX CREDITS SHALL NOT EXCEED THE AMOUNT OF AVAILABLE TAX
CREDITS FOR EDUCATIONAL SCHOLARSHIP ORGANIZATIONS SET FORTH IN PARAGRAPH
SIX OF SUBDIVISION TWENTY-NINTH OF SECTION ONE HUNDRED SEVENTY-ONE OF
THIS CHAPTER.
S 5. Section 171 of the tax law is amended by adding a new subdivision
twenty-ninth to read as follows:
TWENTY-NINTH. FOR THE PURPOSE OF IMPLEMENTING THE PROVISIONS OF
SUBSECTIONS (U), (V), (W), (W-1), (W-2) AND (W-3) OF SECTION SIX HUNDRED
SIX AND SUBDIVISIONS FORTY-FIVE, FORTY-SIX, FORTY-SEVEN AND FORTY-EIGHT
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER THE COMMISSIONER SHALL:
(1) MAINTAIN A LIST OF PUBLIC SCHOOL DISTRICTS, INDIVIDUAL PUBLIC
SCHOOLS, INCLUDING CHARTER SCHOOLS, LOCAL EDUCATION FUNDS, AND EDUCA-
TIONAL SCHOLARSHIP ORGANIZATIONS; AND
(2) APPROVE TAX CREDITS ON A FIRST-COME, FIRST-SERVE BASIS FROM EACH
TAXPAYER WHO SUBMITS TO THE DEPARTMENT AN APPLICATION PREPARED BY THE
COMMISSIONER WHEREIN THE TAXPAYER SHALL SPECIFY EACH TAX FOR WHICH THE
TAXPAYER REQUESTS A CREDIT AND THE APPLICABLE TAXABLE YEAR FOR A CREDIT,
SUBJECT TO THE LIMITS SET FORTH IN PARAGRAPH SIX OF THIS SUBDIVISION;
AND
(3) UPON NOTIFICATION BY THE CHIEF EXECUTIVE OFFICER OF ANY EDUCATION
ENTITY SO LISTED THAT A CONTRIBUTION HAS BEEN RECEIVED, SUCH NOTIFICA-
TION BEING WITHIN ONE BUSINESS DAY OF SAID RECEIPT, RECORD THE AMOUNT
AND DATE OF THE CONTRIBUTION, THE NAME AND ADDRESS OF THE CONTRIBUTOR;
AND
(4) UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF INSTRUCTIONAL
MATERIALS FOR NON-PUBLIC HOME-BASED EDUCATIONAL PROGRAMS, RECORD THE
AMOUNT AND DATE OF THE NOTIFICATION, THE NAME AND ADDRESS OF THE CLAIM-
ANT; AND
(5) UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF THE CLASSROOM
INSTRUCTIONAL MATERIALS AND SUPPLIES FOR USE IN A PUBLIC SCHOOL, INCLUD-
ING A CHARTER SCHOOL, OR AN ELIGIBLE NON-PUBLIC SCHOOL, RECORD THE
AMOUNT AND DATE OF THE NOTIFICATION AND THE NAME AND ADDRESS OF THE
CLAIMANT; AND
(6) MAKE NO MORE THAN TWO HUNDRED FIFTY MILLION DOLLARS IN CREDITS
AVAILABLE IN ANY SINGLE TAX YEAR, PROVIDED THAT FIFTY PERCENT OF SUCH
CREDITS SHALL BE AFFORDED TO TAXPAYERS WHO MAKE DONATIONS TO PUBLIC
EDUCATION ENTITIES AND LOCAL EDUCATION FUNDS, AND FOR THE PURCHASE BY
SCHOOL PERSONNEL, OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES, AND
THAT FIFTY PERCENT OF SUCH CREDITS SHALL BE AFFORDED TO EDUCATION SCHOL-
ARSHIP ORGANIZATIONS AND FOR HOME-BASED INSTRUCTIONAL MATERIALS,
PROVIDED FURTHER, THAT BEGINNING IN TAX YEAR TWO THOUSAND FOURTEEN AND
ANNUALLY THEREAFTER, MAKE NO MORE THAN THREE HUNDRED MILLION DOLLARS IN
CREDITS AVAILABLE IN ANY SINGLE TAX YEAR, PROVIDED THAT FIFTY PERCENT OF
SUCH CREDITS SHALL BE AFFORDED TO TAXPAYERS WHO MAKE DONATIONS TO PUBLIC
EDUCATION ENTITIES AND LOCAL EDUCATION FUNDS, AND FOR THE PURCHASE BY
SCHOOL PERSONNEL OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES, AND
THAT FIFTY PERCENT OF SUCH CREDITS SHALL BE AFFORDED TO EDUCATIONAL
SCHOLARSHIP ORGANIZATIONS AND FOR HOME-BASED INSTRUCTIONAL MATERIALS;
AND
(7) ISSUE TO TAXPAYERS ALL AUTHORIZED CERTIFICATES OF RECEIPT FOR ALL
ELIGIBLE CREDITS NO LATER THAN JANUARY THIRTY-FIRST FOR CREDITS CLAIMED
FOR THE PREVIOUS CALENDAR YEAR; AND
(8) DISALLOW THE PORTION OF THE CREDIT EQUAL TO THE AMOUNT SAVED FROM
THE FEDERAL TAX LIABILITY OF THE TAXPAYER FROM THE CHARITABLE CONTRIB-
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UTION TO A QUALIFIED ORGANIZATION UNDER SECTION FIVE HUNDRED ONE (C)(3)
OF THE INTERNAL REVENUE CODE OF THE UNITED STATES.
S 6. Excess contributions. Contributions exceeding the allowed annual
maximum of the amount set forth in subdivision 29th of section 171 of
the tax law to public educational entities, local educational funds and
for the purchase of classroom instructional materials and supplies for
use in a public school, including a charter school, or an eligible non-
public school; or the allowed annual maximum of the amount set forth in
subdivision 29th of section 171 of the tax law to education scholarship
organizations and for the purchase of home-based instructional materi-
als, shall be applied to the following tax year, and the donor so noti-
fied within one business day.
S 7. The department of taxation and finance shall prepare a written
report before January 31 of each calendar year, which shall contain
statistical information regarding the credits allowed pursuant to
subsections (u), (v), (w), (w-1), (w-2) and (w-3) of section 606 and
subdivisions 45, 46, 47 and 48 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.
S 8. 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 an eligible non-public school that receives funding on
behalf of an eligible pupil from an educational scholarship organization
pursuant to this act, unless specifically authorized by this act.
S 9. This act shall take effect immediately.