assembly Bill A1826B

2013-2014 Legislative Session

Establishes the "education investment incentives act"

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 25, 2014 print number 1826d
amend (t) and recommit to ways and means
Feb 25, 2014 print number 1826c
amend and recommit to ways and means
Jan 08, 2014 referred to ways and means
Jun 20, 2013 print number 1826b
amend and recommit to ways and means
Jun 20, 2013 print number 1826a
amend (t) and recommit to ways and means
Jan 09, 2013 referred to ways and means

Bill Amendments

Original
A
B
C
D (Active)
Original
A
B
C
D (Active)

Co-Sponsors

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A1826 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §39, amd §§208, 210, 606, 615, 1456, 1453, 1503 & 1511, Tax L; add Art 25 §§1209 - 1217, add §1503-a, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A5081C
2009-2010: A10862

A1826 - Bill Texts

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

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

                                  1826

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  CUSICK,  THIELE,  MARKEY, RAIA, MALLIOTAKIS,
  JAFFEE, LAVINE, ESPINAL, ROBINSON, GOLDFEDER, SIMANOWITZ, SCARBOROUGH,
  ROBERTS, BROOK-KRASNY, BENEDETTO, CAMARA, KEARNS -- Multi-Sponsored by
  -- M. of A. BOYLAND, CORWIN, CRESPO, CURRAN, CYMBROWITZ,  ENGLEBRIGHT,
  FINCH,  GABRYSZAK,  GIBSON,  HIKIND,  JACOBS, KOLB, LENTOL, PALMESANO,
  SCHIMEL, SCHIMMINGER, TITONE, WEISENBERG -- read once and referred  to
  the Committee on Ways and Means

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 to accept and receive voluntary cash  contrib-
utions 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;
  e.  The  tax credit provided in this act is merely one of many credits
available to New York taxpayers;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00834-01-3

A. 1826                             2

  f. The intended beneficiaries of the tax credit provided in  this  act
are  the  students  who  attend  public  schools,  or  who further their
educations  using  tuition  scholarships  from  educational  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, BUT SHALL NOT INCLUDE 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  ORGANIZATION 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.
  (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  FOURTEEN,  A  CREDIT  IS

A. 1826                             3

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-SEVEN,
FORTY-EIGHT AND FORTY-NINE 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.
  (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 FOURTEEN 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
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

A. 1826                             4

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-SEVEN,  FORTY-EIGHT  AND  FORTY-NINE 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 TAXPAYER'S 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
FOURTEEN 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)  THE  TAXPAYER SHALL BE RESPONSIBLE FOR NOTIFYING THE COMMISSIONER
OF THE INTENTION TO CLAIM THE ALLOWABLE CREDIT, NO LATER  THAN  DECEMBER
THIRTY-FIRST.
  (W-2) CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. FOR TAXA-
BLE  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, A
CREDIT IS ALLOWED FOR THE PERSONNEL EMPLOYED IN ANY PUBLIC SCHOOL, OR IN
ANY ELIGIBLE NON-PUBLIC SCHOOL FOR THE PURCHASE  OF  CLASSROOM  INSTRUC-
TIONAL MATERIALS AND SUPPLIES.
  (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, 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
FOURTEEN, A CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH  CONTRIB-

A. 1826                             5

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-SEVEN,  FORTY-EIGHT  AND  FORTY-NINE 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 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)  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.
  (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 46, 47, 48 and 49 to read as follows:

A. 1826                             6

  46. DEFINITIONS. AS USED IN SUBDIVISIONS FORTY-SEVEN, FORTY-EIGHT  AND
FORTY-NINE  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, BUT SHALL NOT INCLUDE 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  ORGANIZATION 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-NINE OF THIS SECTION FOR EDUCATIONAL
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.
  47.  CONTRIBUTIONS  TO  PUBLIC EDUCATION CREDIT. (A) FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, A CREDIT  IS
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.

A. 1826                             7

  (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.
  48. CONTRIBUTIONS TO LOCAL EDUCATION  FUND  CREDIT.  (A)  FOR  TAXABLE
YEARS  BEGINNING  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND FOURTEEN, 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.
  49. 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, OR AN 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-SIX, FORTY-SEVEN, FORTY-EIGHT AND  FORTY-NINE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER THE COMMISSIONER SHALL:

A. 1826                             8

  (1)  MAINTAIN  A  LIST  OF  PUBLIC SCHOOL DISTRICTS, INDIVIDUAL PUBLIC
SCHOOLS, LOCAL EDUCATION FUNDS, AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZA-
TIONS; 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, AND THE NAME AND ADDRESS OF THE  CONTRIBU-
TOR; 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, AND THE NAME AND ADDRESS OF THE
CLAIMANT; AND
  (5) UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF THE  CLASSROOM
INSTRUCTIONAL  MATERIALS  AND SUPPLIES FOR USE IN A PUBLIC SCHOOL, OR AN
ELIGIBLE NON-PUBLIC SCHOOL, RECORD THE AMOUNT AND DATE OF THE  NOTIFICA-
TION 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  FIFTEEN  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-
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, 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 materials, shall be applied to the
following tax year, and the donor so notified 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

A. 1826                             9

statistical  information  regarding  the  credits  allowed  pursuant  to
subsections  (u),  (v),  (w),  (w-1), (w-2) and (w-3) of section 606 and
subdivisions 46, 47, 48 and 49 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.

Co-Sponsors

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A1826A - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §39, amd §§208, 210, 606, 615, 1456, 1453, 1503 & 1511, Tax L; add Art 25 §§1209 - 1217, add §1503-a, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A5081C
2009-2010: A10862

A1826A - Bill Texts

view summary

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

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

                                 1826--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

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

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

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "education investment tax credit act".
  S 2. Legislative findings and intent. The legislature hereby finds and
declares that:
  a. The education of the children of this state is one of  the  founda-
tions  of  a  strong  society  that  requires an academically robust and
financially sound school system, both public and non-public;
  b. At a time when the state is considering ways of  reducing  the  tax
burden  for New York state residents and educators are seeking an expan-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00834-07-3

A. 1826--A                          2

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

A. 1826--A                          3

CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT THAT IS SEPARATE FROM  THE  ORGANIZATION'S  OPERATING  OR  OTHER
FUNDS  UNTIL  SUCH  QUALIFIED  CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR
USE,  AND  (V) IS APPROVED TO RECEIVE AUTHORIZED CONTRIBUTIONS AND ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
LAW.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO IS (I) A RESIDENT OF THIS STATE,
(II) OF SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF  SECTION  THIR-
TY-TWO  HUNDRED  TWO OF THE EDUCATION LAW OR WHO IS FOUR YEARS OF AGE ON
OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH SUCH CHILD IS ENROLLED  IN
A  PRE-KINDERGARTEN  PROGRAM,  AND (III) ATTENDS OR IS ABOUT TO ATTEND A
QUALIFIED SCHOOL.
  6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH  (I)  IS
EXEMPT  FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) IS  ESTABLISHED  FOR
THE  PURPOSE OF SUPPORTING AT LEAST ONE PUBLIC SCHOOL OR A PUBLIC SCHOOL
DISTRICT LOCATED IN THIS STATE, (III) USES AT LEAST  NINETY  PERCENT  OF
THE  QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE IMME-
DIATELY PRECEDING CALENDAR YEAR AND  THE  FIRST  ELEVEN  MONTHS  OF  THE
CALENDAR  YEAR  AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS
DURING SUCH MONTHS TO SUPPORT THE PUBLIC SCHOOL  OR  SCHOOLS  OR  PUBLIC
SCHOOL  DISTRICT  OR  DISTRICTS  THAT  SUCH FUND HAS BEEN ESTABLISHED TO
SUPPORT, (IV) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY  INCOME
DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM
THE  FUND'S  OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS
OR INCOME ARE WITHDRAWN FOR USE, AND (V) IS APPROVED TO RECEIVE  AUTHOR-
IZED CONTRIBUTIONS AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE
TWENTY-FIVE OF THE EDUCATION LAW.
  7.  "NON-PUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM OR ELEMENTARY OR SECONDARY SECTARIAN OR NONSECTARIAN  SCHOOL  IN
THIS STATE, OTHER THAN A PUBLIC SCHOOL, THAT PROVIDES INSTRUCTION AT ONE
OR  MORE LOCATIONS TO ELIGIBLE PUPILS IN ACCORDANCE WITH SUBDIVISION TWO
OF SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW.
  8. "PUBLIC EDUCATION ENTITY" MEANS  (I)  A  SCHOOL  DISTRICT  IN  THIS
STATE, (II) A PUBLIC SCHOOL IN THIS STATE, OR (III) A SCHOOL IMPROVEMENT
ORGANIZATION,  PROVIDED  THAT  SUCH  SCHOOL  DISTRICT,  PUBLIC SCHOOL OR
SCHOOL IMPROVEMENT ORGANIZATION DEPOSITS AND  HOLDS  QUALIFIED  CONTRIB-
UTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT
THAT  IS  SEPARATE  FROM  THE  PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT'S
OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED  CONTRIBUTIONS  OR  INCOME
ARE  WITHDRAWN  FOR USE FROM OPERATING OR OTHER FUNDS AND IS APPROVED TO
RECEIVE AUTHORIZED  CONTRIBUTIONS  AND  ISSUE  CERTIFICATES  OF  RECEIPT
PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW.
  9.  "PUBLIC  SCHOOL"  MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE PURSUANT TO ARTICLE ELEVEN OF THE CONSTITUTION, BUT SHALL NOT
INCLUDE A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF  THE  EDUCA-
TION LAW.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A TAXPAYER TO A PUBLIC EDUCATION ENTITY, LOCAL EDUCATION FUND, OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION LISTED IN THE CONTRIBUTION AUTHORIZATION
CERTIFICATE ISSUED TO THE TAXPAYER FOR WHICH THE TAXPAYER HAS RECEIVED A
CERTIFICATE OF RECEIPT FROM SUCH ENTITY, FUND OR ORGANIZATION.
  11.  "QUALIFIED  EDUCATOR"  MEANS  AN  INDIVIDUAL  WHO  IS  A TEACHER,
INSTRUCTOR, COUNSELOR, PRINCIPAL, OR AIDE IN A QUALIFIED SCHOOL  FOR  AT
LEAST NINE HUNDRED HOURS DURING A SCHOOL YEAR.

A. 1826--A                          4

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

A. 1826--A                          5

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

A. 1826--A                          6

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

A. 1826--A                          7

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

A. 1826--A                          8

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

A. 1826--A                          9

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

A. 1826--A                         10

MENT TAX CREDIT. SUCH REPORT SHALL CONTAIN STATISTICAL  INFORMATION,  BY
TAX  TYPE,  REGARDING THE NUMBER OF APPLICATIONS RECEIVED, THE NUMBER OF
CONTRIBUTION AUTHORIZATION  CERTIFICATES  ISSUED  FOR  CONTRIBUTIONS  TO
PUBLIC  EDUCATION  ENTITIES  AND  QUALIFIED  LOCAL  EDUCATION FUNDS, THE
NUMBER OF CONTRIBUTION AUTHORIZATION CERTIFICATES ISSUED FOR  AUTHORIZED
CONTRIBUTIONS  TO  QUALIFIED  SCHOLARSHIP  ORGANIZATIONS,  THE AGGREGATE
AMOUNT OF AUTHORIZED CONTRIBUTIONS FOR  PUBLIC  EDUCATION  ENTITIES  AND
QUALIFIED  LOCAL  EDUCATION  FUNDS,  THE  AGGREGATE AMOUNT OF AUTHORIZED
CONTRIBUTIONS FOR EDUCATIONAL SCHOLARSHIP ORGANIZATIONS,  THE  GEOGRAPH-
ICAL DISTRIBUTION BY COUNTY OF THE APPLICATIONS FOR CONTRIBUTION AUTHOR-
IZATION  CERTIFICATES, THE GEOGRAPHICAL DISTRIBUTION BY COUNTY OF PUBLIC
EDUCATION ENTITIES, LOCAL EDUCATION FUNDS, AND  EDUCATIONAL  SCHOLARSHIP
ORGANIZATIONS  FOR  WHICH  CONTRIBUTION  AUTHORIZATION CERTIFICATES WERE
ISSUED; INFORMATION, INCLUDING GEOGRAPHICAL DISTRIBUTION BY  COUNTY,  OF
THE  NUMBER OF ELIGIBLE PUPILS THAT RECEIVED SCHOLARSHIPS, THE NUMBER OF
QUALIFIED SCHOOLS ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED SUCH  SCHOL-
ARSHIPS, AND THE AVERAGE VALUE OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE
PUPILS. THE COMMISSIONER AND DESIGNATED EMPLOYEES OF THE DEPARTMENT, THE
BOARD  OF REGENTS AND ALL MEMBERS OF THE BOARD OF REGENTS, INCLUDING THE
COMMISSIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE DEPARTMENT  OF
EDUCATION,  SHALL  BE  ALLOWED  AND  ARE  DIRECTED TO SHARE AND EXCHANGE
INFORMATION REGARDING THE CREDITS APPLIED FOR, ALLOWED OR CLAIMED PURSU-
ANT TO THIS SECTION; THE TAXPAYERS WHO ARE APPLYING FOR CREDITS  OR  WHO
ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM
CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT; AND THE PUBLIC EDUCATION
ENTITIES,  LOCAL  EDUCATION  FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS THAT APPLIED FOR APPROVAL TO BE AUTHORIZED  TO  RECEIVE  QUALIFIED
CONTRIBUTIONS  AND  WHO  WERE APPROVED TO BE AUTHORIZED TO ISSUE CERTIF-
ICATES OF RECEIPT, INCLUDING INFORMATION CONTAINED IN  OR  DERIVED  FROM
APPLICATION  FORMS  SUBMITTED TO THE DEPARTMENT OF EDUCATION OR BOARD OF
REGENTS.
  (M) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-14: SECTION 210; SUBDIVISION 47;
  (2) ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (W); AND SECTION 615;
SUBSECTION (G);
  (3) ARTICLE 32: SECTION 1456; SUBSECTION (AA);
  (4) ARTICLE 33: SECTION 1511; SUBDIVISION (DD).
  S  4.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 21 to read as follows:
  (21) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH CREDIT IS CLAIMED
PURSUANT  TO  SUBDIVISION FORTY-SEVEN OF SECTION TWO HUNDRED TEN OF THIS
CHAPTER.
  S 5. Section 210 of the tax law is amended by adding a new subdivision
47 to read as follows:
  47. EDUCATION INVESTMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
SECTION THIRTY-NINE OF THIS CHAPTER, AGAINST THE  TAX  IMPOSED  BY  THIS
ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO  LESS
THAN  THE  HIGHER  OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) OR (D) OF
SUBDIVISION ONE OF THIS  SECTION.  HOWEVER,  IF  THE  AMOUNT  OF  CREDIT
ALLOWED UNDER THIS SUBDIVISION FOR QUALIFIED CONTRIBUTIONS FOR ANY TAXA-
BLE  YEAR  REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT

A. 1826--A                         11

DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER  TO  THE  SUCCEEDING
FIVE  YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR
YEARS.
  S  6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xxxvi)  to  read  as
follows:
(XXXVI) EDUCATION INVESTMENT         AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (WW)     FORTY-SEVEN OF SECTION TWO HUNDRED
                                     TEN OR SUBSECTION (AA) OF SECTION
                                     FOURTEEN HUNDRED FIFTY-SIX
  S  7. Section 606 of the tax law is amended by adding a new subsection
(w) to read as follows:
  (W) INSTRUCTIONAL MATERIALS AND SUPPLIES  CREDIT.  FOR  TAXABLE  YEARS
BEGINNING  ON AND AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, A TAXPAYER
SHALL BE ALLOWED A CREDIT IN THE AMOUNT PAID BY THE TAXPAYER DURING  THE
TAXABLE  YEAR  FOR  INSTRUCTIONAL MATERIALS AND SUPPLIES WITH RESPECT TO
CLASSROOM BASED INSTRUCTION  IN  A  QUALIFIED  SCHOOL,  OR  ONE  HUNDRED
DOLLARS,  WHICHEVER  IS  LESS;  PROVIDED THAT THE TAXPAYER IS A TEACHER,
INSTRUCTOR, COUNSELOR, PRINCIPAL, OR AIDE  IN  A  QUALIFIED  SCHOOL,  AS
DEFINED  IN  SECTION  THIRTY-NINE  OF  THIS  CHAPTER,  FOR AT LEAST NINE
HUNDRED HOURS DURING A SCHOOL YEAR. FOR PURPOSES OF THIS SUBSECTION, THE
TERM "MATERIALS AND SUPPLIES" MEANS AMOUNTS PAID FOR INSTRUCTIONAL MATE-
RIALS OR SUPPLIES THAT ARE DESIGNATED FOR CLASSROOM USE IN ANY QUALIFIED
SCHOOL.
  S 8. Section 606 of the tax law is amended by adding a new  subsection
(ww) to read as follows:
  (WW)  EDUCATION  INVESTMENT  TAX  CREDIT.  (1)  ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS  SUBSECTION  FOR  ANY  QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR
EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S 9. Subsection (g) of section 615 of the tax law is amended by adding
a new paragraph 3 to read as follows:
  (3) WITH RESPECT TO  AN  INDIVIDUAL  WHO  HAS  CLAIMED  THE  EDUCATION
INVESTMENT  TAX  CREDIT FOR QUALIFIED CONTRIBUTIONS PURSUANT TO SUBDIVI-
SION (WW) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, THE TAXPAYER'S NEW
YORK ITEMIZED DEDUCTION SHALL BE REDUCED BY ANY CHARITABLE  CONTRIBUTION
DEDUCTION  ALLOWED  UNDER  SECTION  ONE  HUNDRED SEVENTY OF THE INTERNAL
REVENUE CODE WITH RESPECT TO SUCH QUALIFIED CONTRIBUTIONS.
  S 10. Section 1456  of  the  tax  law  is  amended  by  adding  a  new
subsection (aa) to read as follows:
  (AA)  EDUCATION  INVESTMENT  TAX  CREDIT.  (1)  ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
THIRTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IN NO EVENT SHALL THE CREDIT ALLOWED  UNDER
THIS  SECTION  BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX TO LESS
THAN THE MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
FIFTY-FIVE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF  CREDIT  FOR  ANY
QUALIFIED  CONTRIBUTIONS  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, THE EXCESS MAY BE CARRIED OVER TO THE SUCCEEDING FIVE YEARS  AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  11.  Subsection  (b)  of  section 1453 of the tax law is amended by
adding a new paragraph 16 to read as follows:

A. 1826--A                         12

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

A. 1826--A                         13

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

A. 1826--A                         14

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

A. 1826--A                         15

PUBLIC  SCHOOL  DISTRICT  PURSUANT  TO SECTION TWELVE HUNDRED SIXTEEN OF
THIS ARTICLE.
  2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS  AND  LOCAL  EDUCATION  FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN  APPLICATION  PURSUANT  TO
SECTION TWELVE HUNDRED TWELVE AND RECEIVING APPROVAL PURSUANT TO SECTION
TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
  S  1212.  APPLICATIONS  FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
1. SCHOOL IMPROVEMENT ORGANIZATIONS. A SCHOOL  IMPROVEMENT  ORGANIZATION
SHALL  SUBMIT  AN  APPLICATION  FOR  APPROVAL  TO  ISSUE CERTIFICATES OF
RECEIPT IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER,  PROVIDED
THAT  SUCH  APPLICATION  SHALL  INCLUDE  (I)  SUBMISSION  OF DOCUMENTARY
EVIDENCE THAT SUCH SCHOOL  IMPROVEMENT  ORGANIZATION  HAS  BEEN  GRANTED
EXEMPTION  FROM  TAXATION  UNDER  PARAGRAPH  THREE  OF SUBSECTION (C) OF
SECTION FIVE HUNDRED ONE OF THE  INTERNAL  REVENUE  CODE,  (II)  CERTIF-
ICATION  THAT  ALL  QUALIFIED  CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS ARE DEPOSITED AND HELD IN  AN  ACCOUNT  THAT  IS
SEPARATE  FROM  THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, (III) CERTIFICATION  THAT
SUCH SCHOOL IMPROVEMENT ORGANIZATION WILL USE AT LEAST NINETY PERCENT OF
THE  QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE IMME-
DIATELY PRECEDING CALENDAR YEAR AND  THE  FIRST  ELEVEN  MONTHS  OF  THE
CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING
SUCH  MONTHS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS IN THIS
STATE IN THE PROVISION OF THEIR EDUCATIONAL PROGRAMS BY MAKING  CONTRIB-
UTIONS  TO  ONE  OR  MORE  PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS, OR
PROVIDING EDUCATIONAL PROGRAMS TO, OR IN CONJUNCTION WITH, ONE  OR  MORE
PUBLIC  SCHOOLS  OR  PUBLIC  SCHOOL DISTRICTS LOCATED IN THIS STATE, AND
(IV) A LIST OF THE NAMES AND ADDRESSES OF ALL MEMBERS OF  THE  GOVERNING
BOARD OF THE SCHOOL IMPROVEMENT ORGANIZATION.
  2.  EDUCATIONAL  SCHOLARSHIP ORGANIZATIONS. AN EDUCATIONAL SCHOLARSHIP
ORGANIZATION SHALL SUBMIT AN APPLICATION FOR APPROVAL TO  ISSUE  CERTIF-
ICATES OF RECEIPT IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER,
PROVIDED  THAT SUCH APPLICATION SHALL INCLUDE (I) SUBMISSION OF DOCUMEN-
TARY EVIDENCE THAT SUCH EDUCATIONAL SCHOLARSHIP  ORGANIZATION  HAS  BEEN
GRANTED  EXEMPTION FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C)
OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE,  (II)  CERTIF-
ICATION  THAT  ALL  QUALIFIED  CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS ARE DEPOSITED AND HELD IN  AN  ACCOUNT  THAT  IS
SEPARATE  FROM  THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, (III) CERTIFICATION  THAT
SUCH ORGANIZATION WILL USE AT LEAST NINETY PERCENT OF ITS ANNUAL REVENUE
FROM QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE IMME-
DIATELY  PRECEDING  CALENDAR  YEAR  AND  THE  FIRST ELEVEN MONTHS OF THE
CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING
SUCH MONTHS FOR SCHOLARSHIPS, (IV) CERTIFICATION THAT SUCH  ORGANIZATION
WILL PROVIDE SCHOLARSHIPS TO ELIGIBLE PUPILS WITHOUT LIMITING AVAILABIL-
ITY  TO  ONLY ELIGIBLE PUPILS OF ONE QUALIFIED SCHOOL, AND (V) A LIST OF
THE NAMES AND ADDRESSES OF ALL MEMBERS OF THE GOVERNING  BOARD  OF  SUCH
EDUCATIONAL SCHOLARSHIP ORGANIZATION.
  3.  LOCAL  EDUCATION  FUNDS.  A  LOCAL  EDUCATION FUND SHALL SUBMIT AN
APPLICATION FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT  IN  THE  FORM
AND  MANNER  PRESCRIBED BY THE COMMISSIONER, PROVIDED THAT SUCH APPLICA-
TION SHALL INCLUDE (I) SUBMISSION  OF  DOCUMENTARY  EVIDENCE  THAT  SUCH
LOCAL  EDUCATIONAL  FUND  HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER

A. 1826--A                         16

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

A. 1826--A                         17

FOR USE, AND (V) A COPY OF THE ORGANIZATION'S CURRENT  FINANCIAL  STATE-
MENTS.
  (B) A SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP FUND OR
LOCAL EDUCATION FUND, WITHIN THIRTY DAYS OF RECEIPT BY THE DEPARTMENT OF
AN  APPLICATION FOR RECERTIFICATION BY SUCH SCHOOL IMPROVEMENT ORGANIZA-
TION, EDUCATIONAL SCHOLARSHIP FUND OR LOCAL  EDUCATION  FUND,  SHALL  BE
DEEMED  RECERTIFIED BY THE COMMISSIONER TO ISSUE CERTIFICATES OF RECEIPT
UNLESS THE COMMISSIONER MAKES A DETERMINATION IN WRITING THAT THE APPLI-
CATION FAILS TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION.
  2. PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS. (A) EACH PUBLIC  SCHOOL
OR  PUBLIC  SCHOOL  DISTRICT SHALL FILE AN ANNUAL CERTIFICATION WITH THE
COMMISSIONER IN THE FORM AND MANNER PRESCRIBED BY THE BOARD. SUCH ANNUAL
CERTIFICATION SHALL INCLUDE (I) CERTIFICATION THAT SUCH PUBLIC SCHOOL OR
PUBLIC SCHOOL  DISTRICT  HAS  COMPLIED  WITH  THE  APPLICABLE  REPORTING
REQUIREMENTS  OF  SECTION  TWELVE  HUNDRED  SIXTEEN  OF THIS ARTICLE AND
SUBDIVISION (L) OF SECTION THIRTY-NINE OF THE TAX LAW, AND (II)  CERTIF-
ICATION  THAT  SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT DEPOSITS AND
HOLDS QUALIFIED CONTRIBUTIONS AND  ANY  INCOME  DERIVED  FROM  QUALIFIED
CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC SCHOOL OR
PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL  SUCH  QUALIFIED
CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
  (B)  A  PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT, WITHIN THIRTY DAYS OF
RECEIPT BY THE DEPARTMENT OF AN APPLICATION FOR RECERTIFICATION BY  SUCH
PUBLIC  SCHOOL OR PUBLIC SCHOOL DISTRICT, SHALL BE DEEMED RECERTIFIED BY
THE COMMISSIONER TO ISSUE CERTIFICATES OF RECEIPT UNLESS THE COMMISSION-
ER MAKES A DETERMINATION IN WRITING THAT THE APPLICATION FAILS TO COMPLY
WITH THE PROVISIONS OF THIS SUBDIVISION.
  S 1215. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF  RECEIPT.  THE
BOARD  OF REGENTS, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND
FINANCE, MAY REVOKE THE APPROVAL OF A SCHOOL  IMPROVEMENT  ORGANIZATION,
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING THAT SUCH ORGANIZATION, FUND,  SCHOOL  OR  SCHOOL  DISTRICT  HAS
VIOLATED  THIS  ARTICLE  OR  SECTION  THIRTY-NINE  OF THE TAX LAW. THESE
VIOLATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY OF  THE  FOLLOWING:
(1) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE, (2) THE FAILURE TO
MAINTAIN FULL AND ADEQUATE RECORDS WITH RESPECT TO THE RECEIPT OF QUALI-
FIED  CONTRIBUTIONS,  (3)  THE  FAILURE  TO  SUPPLY  SUCH RECORDS TO THE
DEPARTMENT OR THE BOARD OF REGENTS, OR (4) THE FAILURE TO PROVIDE NOTICE
TO THE DEPARTMENT OF TAXATION AND FINANCE OF  THE  ISSUANCE  OF  CERTIF-
ICATES OF RECEIPT PURSUANT TO SECTION THIRTY-NINE OF THE TAX LAW.  WITH-
IN  FIVE  DAYS  OF THE DETERMINATION REVOKING APPROVAL, THE COMMISSIONER
SHALL PROVIDE NOTICE OF SUCH REVOCATION TO THE  EDUCATIONAL  SCHOLARSHIP
ORGANIZATION,  SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND,
PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT.
  S 1216. REPORTING AND RECORDKEEPING.  1.  REPORTING.  (A)  EDUCATIONAL
SCHOLARSHIP   ORGANIZATIONS,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
EDUCATION FUNDS, PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS.
  (I) AN EDUCATIONAL SCHOLARSHIP ORGANIZATION  THAT  RECEIVES  QUALIFIED
CONTRIBUTIONS SHALL REPORT TO THE BOARD OF REGENTS, ON A FORM PRESCRIBED
BY  THE COMMISSIONER BY JANUARY THIRTY-FIRST OF EACH CALENDAR YEAR. SUCH
REPORT SHALL INCLUDE: (A) THE NAME AND ADDRESS OF THE  MEMBERS  AND  THE
CHAIRPERSON  OF  THE  GOVERNING BOARD OF THE ORGANIZATION, (B) THE TOTAL
NUMBER OF CERTIFICATES OF RECEIPT ISSUED DURING THE IMMEDIATELY  PRECED-
ING  CALENDAR  YEAR,  (C)  THE TOTAL DOLLAR AMOUNT OF QUALIFIED CONTRIB-
UTIONS RECEIVED, AS SET FORTH IN CERTIFICATES OF RECEIPT  ISSUED  DURING

A. 1826--A                         18

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

A. 1826--A                         19

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

Co-Sponsors

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A1826B - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §39, amd §§208, 210, 606, 615, 1456, 1453, 1503 & 1511, Tax L; add Art 25 §§1209 - 1217, add §1503-a, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A5081C
2009-2010: A10862

A1826B - Bill Texts

view summary

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

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

                                 1826--B

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

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

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

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

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

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

A. 1826--B                          2

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

A. 1826--B                          3

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

A. 1826--B                          4

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

A. 1826--B                          5

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

A. 1826--B                          6

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

A. 1826--B                          7

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

A. 1826--B                          8

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

A. 1826--B                          9

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

A. 1826--B                         10

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

A. 1826--B                         11

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

A. 1826--B                         12

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

A. 1826--B                         13

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

A. 1826--B                         14

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

A. 1826--B                         15

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

A. 1826--B                         16

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

A. 1826--B                         17

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

A. 1826--B                         18

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

A. 1826--B                         19

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

Co-Sponsors

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A1826C - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §39, amd §§208, 210, 606, 615, 1456, 1453, 1503 & 1511, Tax L; add Art 25 §§1209 - 1217, add §1503-a, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A5081C
2009-2010: A10862

A1826C - Bill Texts

view summary

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

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

                                 1826--C

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  CUSICK, THIELE, MARKEY, MALLIOTAKIS, LAVINE,
  GOLDFEDER, SIMANOWITZ, BROOK-KRASNY, BENEDETTO, CAMARA, KEARNS,  HEVE-
  SI,  PERRY,  BARRETT, BORELLI, CURRAN, WEPRIN, ROZIC, BRINDISI, CLARK,
  SKOUFIS, RODRIGUEZ, RUSSELL,  DenDEKKER,  GJONAJ,  MILLER,  SKARTADOS,
  MOSLEY,  GANTT,  KELLNER, SANTABARBARA, SALADINO, PALUMBO, FITZPATRICK
  -- Multi-Sponsored by -- M. of A. ARROYO, AUBRY, BLANKENBUSH, BOYLAND,
  BRAUNSTEIN, BUTLER, COLTON, COOK, CORWIN, CRESPO, CROUCH,  CYMBROWITZ,
  DAVILA,  DiPIETRO,  FARRELL,  FINCH, GARBARINO, GIGLIO, GOODELL, GRAF,
  HAWLEY, HEASTIE, HENNESSEY, HIKIND, HOOPER, JACOBS, KATZ,  KIM,  KOLB,
  LALOR,  LENTOL,  P. LOPEZ,  MAGEE,  McDONALD,  McDONOUGH,  McLAUGHLIN,
  MONTESANO, MOYA, NOJAY, OAKS, ORTIZ, OTIS, PALMESANO,  PEOPLES-STOKES,
  PRETLOW,  RA,  RIVERA,  ROSA,  SCHIMEL, SCHIMMINGER, SIMOTAS, SOLAGES,
  STEC, SWEENEY, TENNEY, TITONE, TITUS, WALTER,  WEINSTEIN,  WEISENBERG,
  WRIGHT -- read once and referred to the Committee on Ways and Means --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee -- again reported  from  said  committee
  with  amendments, ordered reprinted as amended and recommitted to said
  committee -- recommitted to the Committee on Ways and Means in accord-
  ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "education investment tax credit act".
  S 2. Legislative findings and intent. The legislature hereby finds and
declares that:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00834-27-4

A. 1826--C                          2

  a. The education of the children of this state is one of  the  founda-
tions  of  a  strong  society  that  requires an academically robust and
financially sound school system, both public and non-public;
  b.  At  a  time when the state is considering ways of reducing the tax
burden for New York state residents and educators are seeking an  expan-
sion  of financial resources, charitable giving for educational purposes
should be encouraged;
  c. Permitting public education entities such as school  districts  and
individual  public schools to accept and receive voluntary cash contrib-
utions will be beneficial to taxpayers and educators;
  d. Encouraging voluntary support for education, without prejudice  for
or  against  any  state-sanctioned  educational enterprise, promotes the
state's interest in providing the highest quality education to all chil-
dren in the state;
  e. The tax credit provided in this act is merely one of  many  credits
available to New York taxpayers;
  f.  The intended beneficiaries of the tax credits provided in this act
are the students who attend public schools, students who  further  their
educations  using  tuition  scholarships  from  educational  scholarship
organizations, and teachers who purchase with personal funds  to  supply
their  students  and  classrooms,  and who seek charitable donations for
classroom projects and initiatives;
  g. Permitting educators to claim a credit for the purchase  of  class-
room instructional materials and supplies will insure a wider availabil-
ity of such materials and supplies for all students.
  S  3.    The  tax law is amended by adding a new section 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. "AVAILABLE CREDIT" SHALL MEAN THE AMOUNT OF CREDIT  AUTHORIZED  FOR
THE  TAXABLE  YEAR PURSUANT TO SUBDIVISION (J) OF THIS SECTION MINUS THE
SUM OF THE AMOUNTS LISTED IN THE CONTRIBUTION AUTHORIZATION CERTIFICATES
ISSUED BY THE DEPARTMENT FOR THE CALENDAR YEAR.
  3. "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.
  4. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC OR  SIMILAR  PROGRAM  OF  A
PUBLIC  SCHOOL  THAT  ENHANCES THE CURRICULUM OR ACADEMIC PROGRAM OF THE
PUBLIC SCHOOL, OR PROVIDES A  PRE-KINDERGARTEN  PROGRAM  TO  THE  PUBLIC
SCHOOL.  FOR  PURPOSES  OF  THIS DEFINITION, THE INSTRUCTION, MATERIALS,
PROGRAMS AND OTHER ACTIVITIES  OFFERED  BY  OR  THROUGH  AN  EDUCATIONAL
PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING FEATURES: (I)
INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMI-
LY  AND  CONSUMER  SCIENCES; LITERARY, PERFORMING AND VISUAL ARTS; MATH-
EMATICS, SOCIAL STUDIES, TECHNOLOGY  AND  SCIENTIFIC  ACHIEVEMENT;  (II)
INSTRUCTION  OR  PROGRAMMING  TO  MEET  THE  EDUCATION  NEEDS OF AT-RISK
STUDENTS OR STUDENTS WITH  DISABILITIES,  INCLUDING  TUTORING  OR  COUN-
SELING;  (III)  INSTRUCTION OR PROGRAMMING BEFORE OR AFTER PUBLIC SCHOOL
HOURS, OR ON WEEKENDS THAT IMPROVES STUDENT ACADEMIC ACHIEVEMENT INCLUD-
ING PREPARATION FOR COLLEGE OR A CAREER; OR (IV) THE USE OF  SPECIALIZED
INSTRUCTIONAL  MATERIALS,  INSTRUCTORS  OR INSTRUCTION NOT PROVIDED BY A
PUBLIC SCHOOL.

A. 1826--C                          3

  5. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
TY THAT (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF  SUBSECTION
(C)  OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
OR DESIGNATES AT LEAST NINETY PERCENT  OF  THE  QUALIFIED  CONTRIBUTIONS
RECEIVED  DURING  THE  LAST  MONTH OF THE IMMEDIATELY PRECEDING CALENDAR
YEAR AND THE FIRST ELEVEN MONTHS OF THE CALENDAR  YEAR  AND  ANY  INCOME
DERIVED  FROM SUCH QUALIFIED CONTRIBUTIONS DURING SUCH MONTHS FOR SCHOL-
ARSHIPS, (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 RECEIVE AUTHORIZED CONTRIBUTIONS AND ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
LAW.
  6. "ELIGIBLE PUPIL" MEANS A CHILD WHO IS (I) A RESIDENT OF THIS STATE,
(II) OF SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF  SECTION  THIR-
TY-TWO  HUNDRED  TWO OF THE EDUCATION LAW OR WHO IS FOUR YEARS OF AGE ON
OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH SUCH CHILD IS ENROLLED  IN
A PRE-KINDERGARTEN PROGRAM, (III) ATTENDS OR IS ABOUT TO ATTEND A QUALI-
FIED  SCHOOL, AND (IV) WHOSE HOUSEHOLD'S ADJUSTED GROSS INCOME SHALL NOT
EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS, PROVIDED HOWEVER,  THAT  SUCH
INCOME  LEVEL  SHALL  BE INCREASED FOR AN ELIGIBLE PUPIL BY TEN THOUSAND
DOLLARS FOR EACH DEPENDENT CHILD ABOVE TWO CHILDREN IN  SUCH  HOUSEHOLD,
NOT TO EXCEED AN ADDITIONAL FIFTY THOUSAND DOLLARS.
  7.  "LOCAL  EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (I) IS
EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF  SECTION
FIVE  HUNDRED  ONE OF THE INTERNAL REVENUE CODE, (II) IS ESTABLISHED FOR
THE PURPOSE OF SUPPORTING AT LEAST ONE PUBLIC SCHOOL OR A PUBLIC  SCHOOL
DISTRICT  LOCATED  IN  THIS STATE, (III) USES AT LEAST NINETY PERCENT OF
THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE  IMME-
DIATELY  PRECEDING  CALENDAR  YEAR  AND  THE  FIRST ELEVEN MONTHS OF THE
CALENDAR YEAR AND ANY INCOME DERIVED FROM SUCH  QUALIFIED  CONTRIBUTIONS
DURING  SUCH  MONTHS  TO  SUPPORT THE PUBLIC SCHOOL OR SCHOOLS OR PUBLIC
SCHOOL DISTRICT OR DISTRICTS THAT SUCH  FUND  HAS  BEEN  ESTABLISHED  TO
SUPPORT,  (IV) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME
DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM
THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
OR  INCOME ARE WITHDRAWN FOR USE, AND (V) IS APPROVED TO RECEIVE AUTHOR-
IZED CONTRIBUTIONS AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE
TWENTY-FIVE OF THE EDUCATION LAW.
  8.  "NON-PUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM  OR  ELEMENTARY OR SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL IN
THIS STATE, OTHER THAN A PUBLIC SCHOOL, THAT PROVIDES INSTRUCTION AT ONE
OR MORE LOCATIONS TO ELIGIBLE PUPILS IN ACCORDANCE WITH SUBDIVISION  TWO
OF SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW.
  9.  "PUBLIC  EDUCATION  ENTITY"  MEANS  (I)  A SCHOOL DISTRICT IN THIS
STATE, (II) A PUBLIC SCHOOL IN THIS STATE,  PROVIDED  THAT  SUCH  SCHOOL
DISTRICT OR PUBLIC SCHOOL 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 FROM OPERATING OR OTHER FUNDS AND IS APPROVED TO RECEIVE AUTHOR-
IZED CONTRIBUTIONS AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE
TWENTY-FIVE OF THE EDUCATION LAW.

A. 1826--C                          4

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

A. 1826--C                          5

UNDER  SECTION  ONE  HUNDRED  SEVENTY OF THE INTERNAL REVENUE CODE, OR A
DEDUCTION PURSUANT TO ARTICLES NINE-A,  THIRTY-TWO  OR  THIRTY-THREE  OF
THIS CHAPTER FOR SUCH QUALIFIED CONTRIBUTIONS, THE TAXPAYER SHALL NOT BE
ALLOWED TO CLAIM BOTH AN EDUCATION INVESTMENT TAX CREDIT AND A DEDUCTION
FOR  SUCH  QUALIFIED  CONTRIBUTIONS.   THE COMMISSIONER SHALL MAINTAIN A
LIST OF THE PUBLIC EDUCATION ENTITIES, LOCAL EDUCATION FUNDS AND  EDUCA-
TIONAL  SCHOLARSHIP  ORGANIZATIONS  THAT ARE AUTHORIZED TO ISSUE CERTIF-
ICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW.
  (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL THE SUM  OF
THE  CREDIT  COMPONENTS  SPECIFIED  IN  PARAGRAPHS ONE, TWO AND THREE OF
SUBDIVISION (D) OF THIS SECTION FOR THE TAXABLE YEAR; PROVIDED, HOWEVER,
THAT THE AMOUNT OF CREDIT FOR QUALIFIED CONTRIBUTIONS SHALL  NOT  EXCEED
THE  LESSER OF (I) THE SUM OF SUCH CREDIT COMPONENTS, OR (II) THE CREDIT
LIMITATION PRESCRIBED BY SUBDIVISIONS (I) AND (J) OF THIS SECTION.  WHEN
A  QUALIFIED  CONTRIBUTION IS MADE BY A PARTNERSHIP, ANY DIRECT OR INDI-
RECT PARTNER IN SUCH PARTNERSHIP WHO OR WHICH IS TAXABLE  UNDER  ARTICLE
NINE-A,  TWENTY-TWO, THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL BE
A TAXPAYER UNDER THIS PARAGRAPH AND ALLOWED A  PRO  RATA  SHARE  OF  THE
CREDIT  AGAINST SUCH TAX. WHEN A QUALIFIED CONTRIBUTION IS MADE BY A NEW
YORK S CORPORATION, ANY SHAREHOLDER IN SUCH NEW YORK S  CORPORATION  WHO
IS  TAXABLE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL BE A TAXPAYER
UNDER THIS PARAGRAPH AND ALLOWED A PRO RATA SHARE OF THE CREDIT  AGAINST
SUCH TAX.
  (D)  CREDIT  COMPONENTS.  1. PUBLIC EDUCATION ENTITY CREDIT COMPONENT.
THE PUBLIC EDUCATION ENTITY CREDIT COMPONENT SHALL EQUAL THE SUM OF  THE
QUALIFIED  CONTRIBUTIONS  MADE  TO  A  PUBLIC EDUCATION ENTITY OR SCHOOL
IMPROVEMENT ORGANIZATION BY THE TAXPAYER DURING  THE  TAXABLE  YEAR,  AS
LISTED  ON  THE  CERTIFICATE  OR CERTIFICATES OF RECEIPT PROVIDED TO THE
TAXPAYER, FOR WHICH THE TAXPAYER HAS RECEIVED  A  CONTRIBUTION  AUTHORI-
ZATION  CERTIFICATE;  PROVIDED,  HOWEVER,  THAT  A TAXPAYER SHALL NOT BE
ALLOWED CREDIT FOR ANY QUALIFIED CONTRIBUTIONS IF  THE  TAXPAYER  DESIG-
NATES  THE  CONTRIBUTIONS  FOR  THE  DIRECT  BENEFIT  OF  ANY PARTICULAR
STUDENT; AND, PROVIDED FURTHER THAT THE TAXPAYER SHALL  NOT  BE  ALLOWED
CREDIT  FOR  QUALIFIED  CONTRIBUTIONS  FOR  WHICH THE TAXPAYER CLAIMED A
FEDERAL ITEMIZED DEDUCTION UNLESS THE TAXPAYER ADDS BACK THE  AMOUNT  OF
THE  ITEMIZED  DEDUCTION  PURSUANT  TO  SECTION  TWO  HUNDRED EIGHT, SIX
HUNDRED TWELVE, FOURTEEN HUNDRED FIFTY-THREE OR FIFTEEN HUNDRED THREE OF
THIS CHAPTER.
  2. LOCAL EDUCATION FUND CREDIT COMPONENT.  THE  LOCAL  EDUCATION  FUND
CREDIT COMPONENT SHALL EQUAL THE SUM OF THE QUALIFIED CONTRIBUTIONS MADE
TO  A  LOCAL  EDUCATION FUND OR FUNDS BY THE TAXPAYER DURING THE TAXABLE
YEAR, AS LISTED ON THE CERTIFICATE OR CERTIFICATES OF  RECEIPT  PROVIDED
TO  THE  TAXPAYER,  FOR  WHICH  THE TAXPAYER HAS RECEIVED A CONTRIBUTION
AUTHORIZATION CERTIFICATE; PROVIDED, HOWEVER, THAT A TAXPAYER SHALL  NOT
BE ALLOWED CREDIT FOR ANY QUALIFIED CONTRIBUTIONS IF THE TAXPAYER DESIG-
NATES  THE  CONTRIBUTIONS  FOR  THE  DIRECT  BENEFIT  OF  ANY PARTICULAR
STUDENT; AND, PROVIDED FURTHER THAT THE TAXPAYER SHALL  NOT  BE  ALLOWED
CREDIT  FOR  QUALIFIED  CONTRIBUTIONS  FOR  WHICH THE TAXPAYER CLAIMED A
FEDERAL ITEMIZED DEDUCTION UNLESS THE TAXPAYER ADDS BACK THE  AMOUNT  OF
THE  ITEMIZED  DEDUCTION  PURSUANT  TO  SECTION  TWO  HUNDRED EIGHT, SIX
HUNDRED TWELVE, FOURTEEN HUNDRED FIFTY-THREE OR FIFTEEN HUNDRED THREE OF
THIS CHAPTER.
  3. EDUCATIONAL SCHOLARSHIP ORGANIZATION CREDIT COMPONENT.  THE  EDUCA-
TIONAL  SCHOLARSHIP  ORGANIZATION  CREDIT  COMPONENT SHALL BE THE SUM OF
QUALIFIED CONTRIBUTIONS MADE TO AN EDUCATIONAL SCHOLARSHIP  ORGANIZATION
OR  ORGANIZATIONS  BY THE TAXPAYER DURING THE TAXABLE YEAR, AS LISTED ON

A. 1826--C                          6

THE CERTIFICATE OR CERTIFICATES OF RECEIPT PROVIDED TO THE TAXPAYER, FOR
WHICH THE TAXPAYER HAS RECEIVED  A  CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATE;  PROVIDED,  HOWEVER,  THAT A TAXPAYER SHALL NOT BE ALLOWED CREDIT
FOR  ANY  QUALIFIED CONTRIBUTIONS THAT ARE FOR THE DIRECT BENEFIT OF ANY
PARTICULAR STUDENT; AND, PROVIDED FURTHER THAT THE TAXPAYER SHALL NOT BE
ALLOWED A CREDIT FOR QUALIFIED  CONTRIBUTIONS  FOR  WHICH  THE  TAXPAYER
CLAIMED  A  FEDERAL ITEMIZED DEDUCTION UNLESS THE TAXPAYER ADDS BACK THE
AMOUNT OF THE ITEMIZED DEDUCTION PURSUANT TO SECTION TWO HUNDRED  EIGHT,
SIX  HUNDRED  TWELVE,  FOURTEEN  HUNDRED  FIFTY-THREE OR FIFTEEN HUNDRED
THREE OF THIS CHAPTER.
  (E) CONTRIBUTION AUTHORIZATION CERTIFICATE;  REQUIREMENT.  A  TAXPAYER
SHALL  NOT BE ALLOWED A CREDIT PURSUANT TO THIS SECTION FOR ANY CONTRIB-
UTION MADE BY THE TAXPAYER TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVE-
MENT ORGANIZATION, LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL  SCHOLARSHIP
ORGANIZATION  THAT  WAS  MADE  PRIOR  TO  THE DEPARTMENT'S ISSUANCE OF A
CONTRIBUTION AUTHORIZATION CERTIFICATE FOR SUCH CONTRIBUTION. A TAXPAYER
MAY BE ISSUED MULTIPLE CONTRIBUTION AUTHORIZATION  CERTIFICATES  BY  THE
DEPARTMENT,  PROVIDED  THAT  THE  TAXPAYER MAKES AN APPLICATION FOR EACH
SUCH CERTIFICATE.
  (F) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY,  SCHOOL  IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION,  THE TAXPAYER SHALL APPLY FOR A CONTRIBUTION AUTHORIZATION CERTIF-
ICATE FOR SUCH CONTRIBUTION. TAXPAYERS THAT WANT TO MAKE MORE  THAN  ONE
CONTRIBUTION  TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP  ORGANIZATION  OR
CONTRIBUTE  TO MORE THAN ONE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION, MUST MAKE  A  SEPARATE  APPLICATION  FOR  EACH  SUCH  CONTRIBUTION
AUTHORIZATION  CERTIFICATE.  SUCH  APPLICATION  SHALL BE IN THE FORM AND
MANNER PRESCRIBED BY THE  DEPARTMENT,  PROVIDED  THAT  SUCH  APPLICATION
INCLUDES  (I) THE TAXPAYER'S NAME AND ADDRESS, (II) THE NAME AND ADDRESS
OF EACH PUBLIC EDUCATION ENTITY, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  THAT  WILL  RECEIVE  A  CONTRIBUTION FROM THE
TAXPAYER, (III) THE AMOUNT THAT THE TAXPAYER  WILL  CONTRIBUTE  TO  SUCH
ENTITY,  FUND  OR  ORGANIZATION, AND (IV) ANY OTHER INFORMATION THAT THE
COMMISSIONER DEEMS NECESSARY;  PROVIDED,  HOWEVER,  THAT  THE  AGGREGATE
AMOUNT  OF  CREDIT  FOR  WHICH  A  TAXPAYER MAY APPLY CANNOT EXCEED FIVE
PERCENT OF ONE HALF OF THE CREDIT CAP SET FORTH IN  SUBDIVISION  (J)  OF
THIS SECTION. THE DEPARTMENT MAY ALLOW TAXPAYERS TO MAKE MULTIPLE APPLI-
CATIONS ON THE SAME FORM, PROVIDED THAT EACH APPLICATION SHALL BE TREAT-
ED AS A SEPARATE APPLICATION.
  (G)  CONTRIBUTION  AUTHORIZATION  CERTIFICATES. 1. ISSUANCE OF CERTIF-
ICATES. THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION  CERTIF-
ICATES  IN  TWO PHASES IN ACCORDANCE WITH THE CREDIT LIMITATIONS AND CAP
SET FORTH IN SUBDIVISIONS (I) AND (J) OF THIS SECTION. IN PHASE ONE, THE
APPLICATION PROCESS BEGINS ON THE FIRST DAY OF JANUARY AND ENDS  ON  THE
FOURTEENTH  DAY  OF  JANUARY. DURING THIS APPLICATION PERIOD THE COMMIS-
SIONER SHALL NOT ISSUE ANY CONTRIBUTION AUTHORIZATION  CERTIFICATES.  ON
THE  FIFTEENTH  DAY  OF  JANUARY,  THE  COMMISSIONER  SHALL ISSUE CREDIT
AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED  DURING  THE  PHASE
ONE  APPLICATION  PERIOD  ON A FIRST-COME, FIRST-SERVE BASIS, BASED UPON
THE DATE THAT THE DEPARTMENT RECEIVED THE  CONTRIBUTION  APPLICATION  IN
ACCORDANCE WITH THE CREDIT LIMITATIONS AND CAP SET FORTH IN SUBDIVISIONS
(I) AND (J) OF THIS SECTION, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE
CONTRIBUTIONS  FOR  WHICH  APPLICATIONS HAVE BEEN FILED DURING THE PHASE

A. 1826--C                          7

ONE APPLICATION PERIOD EXCEEDS THE CREDIT  GAP  FOR  QUALIFIED  CONTRIB-
UTIONS  AVAILABLE  IN ACCORDANCE WITH THE CREDIT LIMITATIONS AND CAP SET
FORTH IN SUBDIVISIONS (I)  AND  (J)  OF  THIS  SECTION,  THE  AUTHORIZED
CONTRIBUTION  AMOUNT  LISTED  IN EACH CONTRIBUTION AUTHORIZATION CERTIF-
ICATE SHALL EQUAL THE PRO-RATA SHARE OF THE AVAILABLE CREDIT.  IN  PHASE
TWO,  THE APPLICATION PROCESS BEGINS ON THE FIFTEENTH DAY OF JANUARY AND
ENDS ON THE THIRTY-FIRST DAY OF DECEMBER.  DURING THIS PHASE TWO  APPLI-
CATION  PERIOD,  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION
CERTIFICATES ON A FIRST-COME, FIRST-SERVE BASIS,  BASED  UPON  THE  DATE
THAT  THE  DEPARTMENT  RECEIVED  THE  CONTRIBUTOR'S APPLICATION FOR SUCH
CONTRIBUTION AUTHORIZATION CERTIFICATE; PROVIDED, HOWEVER,  THAT  IF  ON
ANY  DAY  THE  DEPARTMENT  RECEIVES APPLICATIONS FOR WHICH THE AGGREGATE
TOTAL OF CONTRIBUTIONS FOR WHICH APPLICATIONS HAVE BEEN MADE EXCEEDS THE
CREDIT CAP FOR QUALIFIED CONTRIBUTIONS AVAILABLE TO ALL TAXPAYERS AS SET
FORTH IN SUBDIVISION (J) OF THIS SECTION,  THE  AUTHORIZED  CONTRIBUTION
AMOUNT LISTED IN EACH CONTRIBUTION AUTHORIZATION CERTIFICATE ON SUCH DAY
SHALL  EQUAL THE PRO-RATA SHARE OF THE AVAILABLE CREDIT. FOR PURPOSES OF
DETERMINING A TAXPAYER'S PRO-RATA SHARE OF AVAILABLE CREDIT, THE COMMIS-
SIONER SHALL MULTIPLY THE AMOUNT OF AVAILABLE CREDIT BY A FRACTION,  THE
NUMERATOR  OF  WHICH  EQUALS  THE AUTHORIZED CREDIT AMOUNT LISTED ON THE
TAXPAYER'S APPLICATION AND THE DENOMINATOR OF WHICH EQUALS THE AGGREGATE
AMOUNT OF AUTHORIZED CREDIT SOUGHT IN ALL OF THE AFFECTED APPLICATIONS.
  2. CONTRIBUTION AUTHORIZATION CERTIFICATE LIMITS. A TAXPAYER'S  AGGRE-
GATE  AUTHORIZED CONTRIBUTION AMOUNT AS LISTED ON ONE OR MORE AUTHORIZED
CONTRIBUTION CERTIFICATES ISSUED TO THE TAXPAYER, SHALL NOT  EXCEED  THE
LESSER  OF  (I)  FIVE PERCENT OF ONE HALF OF THE CREDIT CAP SET FORTH IN
SUBDIVISION (J) OF THIS SECTION FOR  THE  CALENDAR  YEAR,  OR  (II)  THE
AGGREGATE OF THE AMOUNTS LISTED ON THE TAXPAYER'S APPLICATIONS SUBMITTED
IN ACCORDANCE WITH SUBDIVISION (F) OF THIS SECTION.
  3.  CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION
AUTHORIZATION CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE  WAS
ISSUED,  (II)  THE  DATE BY WHICH THE AUTHORIZED CONTRIBUTIONS LISTED IN
THE CERTIFICATE MUST BE MADE, WHICH SHALL BE SIXTY DAYS FROM THE DATE OF
THE ISSUANCE OF CREDIT AUTHORIZATION CERTIFICATE, (III) THE FIRST  TAXA-
BLE YEAR FOR WHICH CREDIT MAY BE CLAIMED BY THE TAXPAYER, (IV) THE TOTAL
AMOUNT  OF  AUTHORIZED  CONTRIBUTIONS,  (V)  THE NAME AND ADDRESS OF THE
EDUCATIONAL SCHOLARSHIP ORGANIZATION, PUBLIC EDUCATION ENTITY  OR  LOCAL
EDUCATION FUND TO WHICH THE TAXPAYER MAY MAKE AN AUTHORIZED CONTRIBUTION
AND  THE  AMOUNT  OF  SUCH  AUTHORIZED  CONTRIBUTION, AND (VI) ANY OTHER
INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY. ISSUED CREDIT AUTHOR-
IZATION CERTIFICATES SHALL BE MAILED TO THE APPROPRIATE TAXPAYERS WITHIN
THREE BUSINESS DAYS OF THEIR ISSUANCE.
  4. NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE.  WITHIN  FIFTEEN  DAYS  OF  THE  ISSUANCE OF A CONTRIBUTION
AUTHORIZATION CERTIFICATE, THE COMMISSIONER SHALL NOTIFY THE EDUCATIONAL
SCHOLARSHIP ORGANIZATION, PUBLIC EDUCATION ENTITY,  OR  LOCAL  EDUCATION
FUND  OF  THE  ISSUANCE OF THE CONTRIBUTION AUTHORIZATION CERTIFICATE TO
THE TAXPAYER. SUCH NOTIFICATION SHALL INCLUDE (I)  THE  TAXPAYER'S  NAME
AND  ADDRESS,  (II) THE DATE SUCH CERTIFICATE WAS ISSUED, (III) THE DATE
BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE NOTIFICATION MUST  BE
CONTRIBUTED, (IV) THE AMOUNT OF THE AUTHORIZED CONTRIBUTION, AND (V) ANY
OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
  5.  DISCLOSURE OF CREDIT AVAILABLE. THE COMMISSIONER SHALL MAINTAIN ON
THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE AMOUNT  OF  CREDITS  FOR
WHICH  TAXPAYERS  MAY  MAKE  APPLICATION  FOR CONTRIBUTION AUTHORIZATION
CERTIFICATION. SUCH RUNNING TOTAL SHALL BE UPDATED ON A DAILY BASIS.

A. 1826--C                          8

  (H) 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  A  CONTRIBUTION  TO  THE
PUBLIC  EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
TION FUND, OR EDUCATIONAL SCHOLARSHIP  ORGANIZATION  SET  FORTH  ON  THE
CREDIT  AUTHORIZATION  CERTIFICATE ISSUED TO THE TAXPAYER BY THE DEPART-
MENT PRIOR TO THE DATE BY WHICH SUCH AUTHORIZED  CONTRIBUTION  SHALL  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 WRITTEN CERTIFICATE OF RECEIPT; PROVIDED,  HOWEVER,  THAT
THE  AMOUNT  OF THE QUALIFIED CONTRIBUTION LISTED ON SUCH CERTIFICATE OF
RECEIPT SHALL NOT EXCEED  THE  LESSER  OF  THE  AUTHORIZED  CONTRIBUTION
AMOUNT OR THE AMOUNT OF THE CONTRIBUTION; AND PROVIDED, FURTHER, THAT IF
THE  TAXPAYER HAS BEEN ISSUED MORE THAN ONE CREDIT AUTHORIZATION CERTIF-
ICATE FOR SUCH CONTRIBUTIONS, THE AMOUNT OF THE  QUALIFIED  CONTRIBUTION
LISTED ON SUCH CERTIFICATE OF RECEIPT SHALL NOT EXCEED THE LESSER OF THE
AGGREGATE OF THE AMOUNT OF THE AUTHORIZED CONTRIBUTIONS OR THE AMOUNT OF
CONTRIBUTIONS.
  3.  UNTIMELY  CONTRIBUTION. IF A TAXPAYER FAILS TO MAKE A CONTRIBUTION
TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,  LOCAL
EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION LISTED IN THE
AUTHORIZED CONTRIBUTION CERTIFICATE ISSUED TO THE TAXPAYER IN AN  AMOUNT
EQUAL  TO  THE AUTHORIZED CONTRIBUTION AMOUNT LISTED IN SUCH CERTIFICATE
PRIOR TO THE DATE BY WHICH SUCH AUTHORIZED CONTRIBUTION IS  REQUIRED  TO
BE  MADE, THE TAXPAYER SHALL NOT BE ENTITLED TO A CERTIFICATE OF RECEIPT
FOR ANY AMOUNT NOT CONTRIBUTED.
  4. 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)
THE DATE FOR EACH QUALIFIED CONTRIBUTION, (IV) THE AMOUNT OF EACH QUALI-
FIED  CONTRIBUTION  AND  THE  CORRESPONDING  CONTRIBUTION  AUTHORIZATION
CERTIFICATE NUMBER, (V) THE TOTAL AMOUNT OF QUALIFIED CONTRIBUTIONS, AND
(VI) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
  5. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
RECEIPT.  UPON  THE  ISSUANCE  OF  A CERTIFICATE OF RECEIPT, THE ISSUING
PUBLIC EDUCATION ENTITY, 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,  PROVIDED  THAT  SUCH  NOTIFICATION  SHALL
INCLUDE  (I) THE TAXPAYER'S NAME AND ADDRESS, (II) THE DATE OF THE ISSU-
ANCE OF A CERTIFICATE OF RECEIPT, (III) THE QUALIFIED CONTRIBUTION  DATE

A. 1826--C                          9

OR  DATES  THE  AMOUNTS CONTRIBUTED ON SUCH DATES, AND THE CORRESPONDING
CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBERS, (IV) THE TOTAL QUALIFIED
CONTRIBUTION LISTED ON SUCH CERTIFICATE, (V) THE ISSUING  PUBLIC  EDUCA-
TION  ENTITY,  SCHOOL  IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR
EDUCATIONAL SCHOLARSHIP ORGANIZATION'S NAME AND ADDRESS,  AND  (VI)  ANY
OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
  6. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF  RECEIPT.  EACH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (G) OF
THIS SECTION REGARDING THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE  TO  A  TAXPAYER SHALL, WITHIN THIRTY DAYS OF THE EXPIRATION
DATE FOR SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION  TO  THE
DEPARTMENT  FOR  EACH TAXPAYER THAT FAILED, IN WHOLE OR IN PART, TO MAKE
THE AUTHORIZED CONTRIBUTION TO  SUCH  PUBLIC  EDUCATION  ENTITY,  SCHOOL
IMPROVEMENT  ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION IN THE FORM AND MANNER PRESCRIBED BY  THE  DEPARTMENT;
PROVIDED  THAT  SUCH  NOTIFICATION SHALL INCLUDE (I) THE TAXPAYER'S NAME
AND ADDRESS, (II) THE DATE THAT THE CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATE  WAS ISSUED, (III) THE AUTHORIZED CONTRIBUTION AMOUNT SET FORTH ON
SUCH CERTIFICATE, (IV) THE AMOUNT OF ANY QUALIFIED CONTRIBUTION MADE  BY
THE  TAXPAYER  AND  THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIF-
ICATE NUMBER, (V) THE AMOUNT OF THE AUTHORIZED  CONTRIBUTION  FOR  WHICH
THE  TAXPAYER  DID  NOT  MAKE  A CONTRIBUTION, (VI) THE PUBLIC EDUCATION
ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION'S NAME AND ADDRESS, AND (VII) ANY  OTHER
INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
  7.  FAILURE TO NOTIFY THE DEPARTMENT. UPON DISCOVERY OF THE FAILURE OF
ANY PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL
EDUCATION  FUND,  OR EDUCATIONAL SCHOLARSHIP ORGANIZATION TO COMPLY WITH
THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS FIVE AND  SIX  OF
THIS  SUBDIVISION,  THE  COMMISSIONER SHALL ISSUE A NOTICE OF COMPLIANCE
FAILURE TO SUCH ENTITY, FUND  OR  ORGANIZATION.  SUCH  ENTITY,  FUND  OR
ORGANIZATION SHALL HAVE THIRTY DAYS FROM THE DATE OF SUCH NOTICE TO MAKE
THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS FIVE AND SIX OF THIS SUBDIVI-
SION. SUCH PERIOD MAY BE EXTENDED FOR AN ADDITIONAL THIRTY DAYS UPON THE
REQUEST  OF THE ENTITY, FUND OR ORGANIZATION. UPON THE EXPIRATION OF THE
PERIOD FOR COMPLIANCE SET FORTH IN THE NOTICE PRESCRIBED BY  THIS  PARA-
GRAPH,  THE  COMMISSIONER  SHALL  NOTIFY  THE  BOARD  OF REGENTS AND THE
COMMISSIONER OF EDUCATION OF ANY ENTITY, FUND OR ORGANIZATION THAT FAILS
TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS FIVE AND SIX OF  THIS
SUBDIVISION.
  (I)  CREDIT  LIMITATION.  THE MAXIMUM AMOUNT OF CREDIT THAT A TAXPAYER
MAY CLAIM FOR A TAXABLE YEAR SHALL NOT EXCEED THE LESSER OF  (I)  SEVEN-
TY-FIVE  PERCENT  OF  THE TAXPAYER'S TAX DUE FOR THE TAXABLE YEAR, AFTER
APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY THE TAXPAYER, OR (II)  ONE
MILLION  DOLLARS  FOR THE CALENDAR YEAR.  PROVIDED, HOWEVER, THE COMMIS-
SIONER SHALL DISALLOW THE PORTION OF THE  CREDIT  EQUAL  TO  THE  AMOUNT
SAVED FROM THE FEDERAL TAX LIABILITY OF THE TAXPAYER FROM THE CHARITABLE
CONTRIBUTION  TO  A  QUALIFIED  ORGANIZATION  UNDER  PARAGRAPH  THREE OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE.
ANY CREDIT IN EXCESS OF THIS LIMITATION  MAY  BE  CARRIED  OVER  TO  THE
FOLLOWING  YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR
SUCH YEAR OR YEARS.
  (J) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
AVAILABLE  TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS TO PUBLIC EDUCA-

A. 1826--C                         10

TION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION  FUNDS,
AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS FOR CALENDAR YEAR TWO THOUSAND
FIFTEEN SHALL BE TWO HUNDRED FIFTY MILLION DOLLARS. IN CALENDAR YEAR TWO
THOUSAND  SIXTEEN  AND  THEREAFTER,  THE MAXIMUM PERMITTED CREDITS UNDER
THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE THREE HUNDRED  MILLION,
PLUS  ANY  AMOUNTS  THAT ARE REQUIRED TO BE ADDED TO THE CAP PURSUANT TO
THIS SUBDIVISION. THE MAXIMUM PERMITTED CREDITS UNDER THIS  SECTION  FOR
QUALIFIED  CONTRIBUTIONS  SHALL  BE  ALLOCATED  FIFTY  PERCENT TO PUBLIC
EDUCATION ENTITIES AND LOCAL EDUCATION FUNDS AND FIFTY PERCENT TO EDUCA-
TIONAL SCHOLARSHIP ORGANIZATIONS.
  (K) ADDITIONS TO THE CREDIT CAP. 1. UNISSUED CERTIFICATES OF  RECEIPT.
ANY  AMOUNTS  FOR  WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-IS-
SUANCE OF A CERTIFICATE OF RECEIPT SHALL BE ADDED TO THE CAP  PRESCRIBED
IN SUBDIVISION (J) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
  2.  UNCLAIMED  CREDIT.  UPON THE EXPIRATION OF THE TIME DURING WHICH A
TAXPAYER MAY CLAIM CREDIT OR REFUND OF AN OVERPAYMENT OF TAX PURSUANT TO
SECTION SIX HUNDRED EIGHTY-SEVEN OF THIS CHAPTER,  IN  THE  CASE  OF  AN
ARTICLE  TWENTY-TWO  TAXPAYER,  OR  SECTION ONE THOUSAND EIGHTY-SEVEN OF
THIS  CHAPTER,  IN  THE  CASE  OF  AN  ARTICLE  NINE-A,  THIRTY-TWO   OR
THIRTY-THREE TAXPAYER, ANY AMOUNT FOR WHICH A CERTIFICATE OF RECEIPT WAS
ISSUED  BY  NOT  CLAIMED AS A CREDIT BY A TAXPAYER SHALL BE ADDED TO THE
CAP PRESCRIBED IN SUBDIVISION (J) OF THIS SECTION  FOR  THE  YEAR  IMME-
DIATELY FOLLOWING THE YEAR IN WHICH SUCH PERIOD OF TIME EXPIRED.
  (L) OTHER REQUIREMENTS; MISCELLANEOUS. 1. RECORD KEEPING. EACH TAXPAY-
ER  SHALL,  FOR EACH TAXABLE YEAR FOR WHICH THE EDUCATION INVESTMENT TAX
CREDIT PROVIDED FOR UNDER THIS SECTION IS CLAIMED, MAINTAIN  RECORDS  OF
THE  FOLLOWING  INFORMATION: (I) CONTRIBUTION AUTHORIZATION CERTIFICATES
OBTAINED PURSUANT TO SUBDIVISION (G) OF THIS SECTION, AND  (II)  CERTIF-
ICATES OF RECEIPT OBTAINED PURSUANT TO SUBDIVISION (H) OF THIS SECTION.
  2.  REGULATIONS.  THE  COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE  IMPLEMEN-
TATION  OF  THIS SECTION. SUCH REGULATIONS SHALL CONSTRUE THE PROVISIONS
OF THIS SECTION IN SUCH A MANNER  AS  TO  ENCOURAGE  QUALIFIED  CONTRIB-
UTIONS, PROVIDED THAT SUCH REGULATIONS SHALL NOT IMPOSE ANY NEW REQUIRE-
MENT OR BURDEN ON THE EDUCATIONAL PROGRAM, INSTRUCTION, OR ACTIVITIES OF
A PUBLIC OR NON-PUBLIC SCHOOL.
  (M) REPORTS. 1. REPORTS TO THE COMMISSIONER. ON OR BEFORE THE LAST DAY
OF  FEBRUARY FOR EACH CALENDAR YEAR, EACH PUBLIC EDUCATION ENTITY, LOCAL
EDUCATION FUND, AND EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT ISSUED ONE
OR MORE CERTIFICATES OF RECEIPT SHALL REPORT  TO  THE  COMMISSIONER  THE
NUMBER OF SUCH CERTIFICATES ISSUED AND THE AGGREGATE AMOUNT OF QUALIFIED
CONTRIBUTIONS  MADE  TO  SUCH  ENTITY,  FUND, OR ORGANIZATION DURING THE
IMMEDIATELY PRECEDING CALENDAR YEAR.
  2. JOINT ANNUAL REPORT. ON OR BEFORE THE LAST  DAY  OF  MAY  FOR  EACH
CALENDAR  YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND
THE COMMISSIONER OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN  REPORT  TO
THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE  CHAIRMAN
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION INVEST-
MENT  TAX  CREDIT. SUCH REPORT SHALL CONTAIN STATISTICAL INFORMATION, BY
TAX TYPE, REGARDING THE NUMBER OF APPLICATIONS RECEIVED, THE  NUMBER  OF
CONTRIBUTION  AUTHORIZATION  CERTIFICATES  ISSUED  FOR  CONTRIBUTIONS TO
PUBLIC EDUCATION ENTITIES  AND  QUALIFIED  LOCAL  EDUCATION  FUNDS,  THE
NUMBER  OF CONTRIBUTION AUTHORIZATION CERTIFICATES ISSUED FOR AUTHORIZED
CONTRIBUTIONS TO  QUALIFIED  SCHOLARSHIP  ORGANIZATIONS,  THE  AGGREGATE
AMOUNT  OF  AUTHORIZED  CONTRIBUTIONS  FOR PUBLIC EDUCATION ENTITIES AND

A. 1826--C                         11

QUALIFIED LOCAL EDUCATION FUNDS,  THE  AGGREGATE  AMOUNT  OF  AUTHORIZED
CONTRIBUTIONS  FOR  EDUCATIONAL SCHOLARSHIP ORGANIZATIONS, THE GEOGRAPH-
ICAL DISTRIBUTION BY COUNTY OF THE APPLICATIONS FOR CONTRIBUTION AUTHOR-
IZATION  CERTIFICATES, THE GEOGRAPHICAL DISTRIBUTION BY COUNTY OF PUBLIC
EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
FUNDS,  AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS FOR WHICH CONTRIBUTION
AUTHORIZATION CERTIFICATES WERE ISSUED; INFORMATION, INCLUDING GEOGRAPH-
ICAL 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  SCHOLARSHIPS  RECEIVED BY SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND
DESIGNATED EMPLOYEES OF THE DEPARTMENT, THE BOARD  OF  REGENTS  AND  ALL
MEMBERS OF THE BOARD OF REGENTS, INCLUDING THE COMMISSIONER OF EDUCATION
AND  DESIGNATED  EMPLOYEES  OF  THE  DEPARTMENT  OF  EDUCATION, SHALL BE
ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE
CREDITS APPLIED FOR, ALLOWED OR CLAIMED PURSUANT TO  THIS  SECTION;  THE
TAXPAYERS  WHO  ARE  APPLYING  FOR  CREDITS OR WHO ARE CLAIMING CREDITS,
INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM  CREDIT  CLAIM  FORMS
SUBMITTED  TO  THE  DEPARTMENT; AND THE PUBLIC EDUCATION ENTITIES, LOCAL
EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS  THAT  APPLIED
FOR APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED CONTRIBUTIONS AND WHO
WERE APPROVED TO BE AUTHORIZED TO ISSUE CERTIFICATES OF RECEIPT, INCLUD-
ING INFORMATION CONTAINED IN OR DERIVED FROM APPLICATION FORMS SUBMITTED
TO THE DEPARTMENT OF EDUCATION OR BOARD OF REGENTS.
  (N)  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 (W); AND SECTION  615;
SUBSECTION (G);
  3. ARTICLE 32: SECTION 1456; SUBSECTION (AA);
  4. ARTICLE 33: SECTION 1511; SUBDIVISION (DD).
  S  4.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 21 to read as follows:
  (21) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH CREDIT IS CLAIMED
PURSUANT  TO  SUBDIVISION FORTY-EIGHT OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE.
  S 5. 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  THUS  NOT
DEDUCTIBLE  IN  SUCH  TAXABLE YEAR MAY BE CARRIED OVER TO THE SUCCEEDING
FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR  OR
YEARS.
  S  6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause  (xxxvii)  to  read  as
follows:

A. 1826--C                         12

(XXXVII) EDUCATION INVESTMENT        AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (XX)     FORTY-EIGHT OF SECTION TWO HUNDRED
                                     TEN OR SUBSECTION (AA) OF SECTION
                                     FOURTEEN HUNDRED FIFTY-SIX
  S  7. Section 606 of the tax law is amended by adding a new subsection
(w) to read as follows:
  (W) INSTRUCTIONAL MATERIALS AND SUPPLIES  CREDIT.  FOR  TAXABLE  YEARS
BEGINNING  ON  AND AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER
SHALL BE ALLOWED A CREDIT IN THE AMOUNT PAID BY THE TAXPAYER DURING  THE
TAXABLE  YEAR  FOR  INSTRUCTIONAL MATERIALS AND SUPPLIES WITH RESPECT TO
CLASSROOM BASED INSTRUCTION  IN  A  QUALIFIED  SCHOOL,  OR  TWO  HUNDRED
DOLLARS,  WHICHEVER  IS  LESS;  PROVIDED THAT THE TAXPAYER IS A TEACHER,
INSTRUCTOR, COUNSELOR, PRINCIPAL, OR AIDE  IN  A  QUALIFIED  SCHOOL,  AS
DEFINED  IN SECTION 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 AMOUNTS PAID FOR INSTRUCTIONAL MATERIALS
OR SUPPLIES THAT ARE DESIGNATED  FOR  CLASSROOM  USE  IN  ANY  QUALIFIED
SCHOOL.
  S  8.  Subsections  (yy)  and  (zz)  of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of  2003  are
relettered  subsections  (yyy)  and  (zzz)  and a new subsection (xx) is
added 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 9. Subsection (g) of section 615 of the tax law is amended by adding
a new paragraph 3 to read as follows:
  (3)  WITH  RESPECT  TO  AN  INDIVIDUAL  WHO  HAS CLAIMED THE EDUCATION
INVESTMENT TAX CREDIT FOR QUALIFIED CONTRIBUTIONS PURSUANT  TO  SUBDIVI-
SION (XX) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, THE TAXPAYER'S NEW
YORK  ITEMIZED DEDUCTION SHALL BE REDUCED BY ANY CHARITABLE CONTRIBUTION
DEDUCTION ALLOWED UNDER SECTION ONE  HUNDRED  SEVENTY  OF  THE  INTERNAL
REVENUE CODE WITH RESPECT TO SUCH QUALIFIED CONTRIBUTIONS.
  S  10.  Section  1456  of  the  tax  law  is  amended  by adding a new
subsection (aa) to read as follows:
  (AA) EDUCATION INVESTMENT TAX  CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION OF CREDIT. IN NO EVENT SHALL THE CREDIT ALLOWED UNDER
THIS SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX  TO  LESS
THAN THE MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
FIFTY-FIVE  OF  THIS  ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT FOR ANY
QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR REDUCES  THE  TAX  TO  SUCH
AMOUNT,  THE EXCESS MAY BE CARRIED OVER TO THE SUCCEEDING FIVE YEARS AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 11. Subsection (b) of section 1453 of the  tax  law  is  amended  by
adding a new paragraph 16 to read as follows:
  (16)  THE  AMOUNT  OF  ANY  DEDUCTION  ALLOWED PURSUANT TO SECTION ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH CREDIT IS CLAIMED
PURSUANT TO SECTION FOURTEEN HUNDRED FIFTY-SIX OF THIS ARTICLE.

A. 1826--C                         13

  S 12. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (W) to read as follows:
  (W)  THE  AMOUNT  OF  ANY  DEDUCTION  ALLOWED  PURSUANT TO SECTION ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH CREDIT IS CLAIMED
PURSUANT TO SECTION FIFTEEN HUNDRED ELEVEN OF THIS ARTICLE.
  S 13. Section 1511 of the tax law is amended by adding a new  subdivi-
sion (dd) to read as follows:
  (DD)  EDUCATION  INVESTMENT  TAX  CREDIT.  (1)  ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A)  OF  SECTION
FIFTEEN HUNDRED TWO OR BY SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE,
WHICHEVER  IS APPLICABLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER
THIS SUBDIVISION FOR ANY QUALIFIED CONTRIBUTIONS FOR  ANY  TAXABLE  YEAR
REDUCES  THE  TAX  TO SUCH AMOUNT, THE EXCESS MAY BE CARRIED OVER TO THE
SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE  TAXPAYER'S  TAX  FOR
SUCH YEAR OR YEARS.
  S  14. The education law is amended by adding a new article 25 to read
as follows:
                               ARTICLE 25
                 EDUCATION INVESTMENT TAX CREDIT PROGRAM
SECTION 1209. SHORT TITLE.
        1210. DEFINITIONS.
        1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1212. APPLICATIONS  FOR  APPROVAL  TO  ISSUE   CERTIFICATES   OF
                RECEIPT.
        1213. APPLICATION APPROVAL.
        1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1215. REPORTING AND RECORDKEEPING.
        1216. 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;  (C)  INSTRUCTION  OR  PROGRAMMING BEFORE OR AFTER PUBLIC SCHOOL
HOURS, OR ON WEEKENDS THAT IMPROVES STUDENT ACADEMIC ACHIEVEMENT INCLUD-
ING  PREPARATION FOR COLLEGE OR A CAREER;  OR  (D)  USE  OF  SPECIALIZED

A. 1826--C                         14

INSTRUCTIONAL  MATERIALS,  INSTRUCTORS  OR INSTRUCTION NOT PROVIDED BY A
PUBLIC SCHOOL.
  4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
TY WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C)  OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
OR DESIGNATES AT LEAST NINETY PERCENT  OF  THE  REVENUE  FROM  QUALIFIED
CONTRIBUTIONS  RECEIVED DURING THE LAST MONTH OF THE IMMEDIATELY PRECED-
ING CALENDAR YEAR AND THE FIRST ELEVEN MONTHS OF THE CALENDAR  YEAR  AND
ANY  INCOME  DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH MONTHS FOR
SCHOLARSHIPS, (III) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS  AND  ANY
INCOME  DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPA-
RATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALI-
FIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, (IV) PROVIDES SCHOL-
ARSHIPS  TO  ONLY  ELIGIBLE  PUPILS  FOR  USE  AT  NOT  FEWER THAN THREE
QUALIFIED SCHOOLS, AND (V) IS APPROVED TO  RECEIVE  AUTHORIZED  CONTRIB-
UTIONS AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (I) IS A RESIDENT OF THIS STATE,
(II)  IS  SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION THIR-
TY-TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS  OF  AGE  ON  OR
BEFORE  DECEMBER  FIRST  OF  THE  YEAR  IN  WHICH THEY ARE ENROLLED IN A
PRE-KINDERGARTEN PROGRAM, (III) ATTENDS OR IS ABOUT TO ATTEND  A  QUALI-
FIED  SCHOOL,  AND  (IV)  WHOSE HOUSEHOLD'S ANNUAL ADJUSTED GROSS INCOME
SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS,  PROVIDED  HOWEVER,
THAT  SUCH  INCOME LEVEL SHALL BE INCREASED FOR AN ELIGIBLE PUPIL BY TEN
THOUSAND DOLLARS FOR EACH DEPENDENT CHILD ABOVE  TWO  CHILDREN  IN  SUCH
HOUSEHOLD, NOT TO EXCEED AN ADDITIONAL 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 A PUBLIC SCHOOL
DISTRICT LOCATED IN THIS STATE, (III) USES AT LEAST  NINETY  PERCENT  OF
THE  QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST MONTH OF THE IMME-
DIATELY PRECEDING CALENDAR YEAR AND  THE  FIRST  ELEVEN  MONTHS  OF  THE
CALENDAR  YEAR  AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS
DURING SUCH MONTHS TO SUPPORT THE PUBLIC SCHOOL  OR  SCHOOLS  OR  PUBLIC
SCHOOL  DISTRICT  OR  DISTRICTS  THAT  SUCH FUND HAS BEEN ESTABLISHED TO
SUPPORT, (IV) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY  INCOME
DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM
THE  FUND'S  OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS
OR INCOME ARE WITHDRAWN FOR USE, AND (V) IS APPROVED TO RECEIVE  AUTHOR-
IZED  CONTRIBUTIONS  AND  ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS
ARTICLE.
  7.  "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT   PRE-KINDERGARTEN
PROGRAM OR ELEMENTARY, SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL, OTHER
THAN  A  PUBLIC  SCHOOL,  THAT  IS  PROVIDING INSTRUCTION AT ONE OR MORE
LOCATIONS TO AN ELIGIBLE PUPIL IN ACCORDANCE  WITH  SUBDIVISION  TWO  OF
SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
  8.  "PUBLIC  EDUCATION  ENTITY" MEANS A PUBLIC SCHOOL DISTRICT IN THIS
STATE, OR A PUBLIC SCHOOL IN  THIS  STATE,  PROVIDED  THAT  SUCH  PUBLIC
SCHOOL  DISTRICT  OR PUBLIC SCHOOL DEPOSITS AND HOLDS QUALIFIED CONTRIB-
UTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT
THAT IS SEPARATE FROM THE PUBLIC  SCHOOL  OR  PUBLIC  SCHOOL  DISTRICT'S
OPERATING  OR  OTHER  FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME
ARE WITHDRAWN FOR USE FROM OPERATING OR OTHER FUNDS AND IS  APPROVED  TO
RECEIVE  AUTHORIZED  CONTRIBUTIONS  AND  ISSUE  CERTIFICATES  OF RECEIPT
PURSUANT TO THIS ARTICLE.

A. 1826--C                         15

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

A. 1826--C                         16

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

A. 1826--C                         17

  3. LOCAL EDUCATION FUNDS. A  LOCAL  EDUCATION  FUND  SHALL  SUBMIT  AN
APPLICATION  FOR  APPROVAL  TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM
AND MANNER PRESCRIBED BY THE COMMISSIONER, PROVIDED THAT  SUCH  APPLICA-
TION  SHALL  INCLUDE  (I)  SUBMISSION  OF DOCUMENTARY EVIDENCE THAT SUCH
LOCAL  EDUCATIONAL  FUND  HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER
PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE  HUNDRED  ONE  OF  THE
INTERNAL REVENUE CODE, (II) DOCUMENTATION THAT SUCH LOCAL EDUCATION FUND
HAS  BEEN  ESTABLISHED  TO  SUPPORT AT LEAST ONE PUBLIC SCHOOL OR PUBLIC
SCHOOL DISTRICT, (III) THE NAME OF EACH PUBLIC SCHOOL OR  PUBLIC  SCHOOL
DISTRICT  THAT IS EITHER SUPPORTED BY OR WILL BE SUPPORTED BY SUCH LOCAL
EDUCATION FUND, (IV) CERTIFICATION THAT SUCH  FUND  WILL  USE  AT  LEAST
NINETY  PERCENT  OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE LAST
MONTH OF THE IMMEDIATELY PRECEDING CALENDAR YEAR AND  THE  FIRST  ELEVEN
MONTHS  OF  THE  CALENDAR  YEAR  AND  ANY  INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS DURING SUCH MONTHS TO SUPPORT THE PUBLIC SCHOOL OR SCHOOLS
OR PUBLIC SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND  HAS  BEEN  ESTAB-
LISHED  TO  SUPPORT,  (V)  CERTIFICATION THAT SUCH FUND WILL DEPOSIT AND
HOLD QUALIFIED CONTRIBUTIONS  AND  ANY  INCOME  DERIVED  FROM  QUALIFIED
CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING
OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR  INCOME  ARE  WITH-
DRAWN FOR USE, AND (VI) A LIST OF THE NAMES AND ADDRESSES OF ALL MEMBERS
OF THE GOVERNING BOARD OF SUCH LOCAL EDUCATION FUND.
  S  1213.  APPLICATION  APPROVAL. 1. IN GENERAL.   THE BOARD OF REGENTS
SHALL REVIEW EACH APPLICATION TO DETERMINE WHETHER THE  APPLICANT  SHALL
BE  ENTITLED  TO  APPROVAL  TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO
THIS ARTICLE.  APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE AT THE
NEXT SCHEDULED MEETING OF THE BOARD OF REGENTS, PROVIDED,  HOWEVER  THAT
IF  IT IS NOT PRACTICABLE FOR THE BOARD TO REVIEW AN APPLICATION THAT IS
RECEIVED FEWER THAN THREE DAYS BEFORE A SCHEDULED MEETING, THE BOARD MAY
REVIEW SUCH AN APPLICATION AT THE IMMEDIATELY FOLLOWING SCHEDULED  MEET-
ING.
  2. NOTIFICATION. APPLICANTS SHALL BE NOTIFIED OF THE BOARD OF REGENTS'
DETERMINATION WITHIN THREE BUSINESS DAYS OF THE BOARD'S DETERMINATION.
  S  1214.  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
COMMITTED MATERIAL AND SUBSTANTIAL VIOLATION OF 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, (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 DEPARTMENT OR THE BOARD OF REGENTS, OR (4)
THE  FAILURE TO PROVIDE NOTICE TO THE DEPARTMENT OF TAXATION AND FINANCE
OF THE ISSUANCE 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 TAX
LAW UNLESS THE COMMISSIONER OF TAXATION AND FINANCE AGREES THAT  REVOCA-
TION  IS WARRANTED; AND PROVIDED FURTHER THAT THE BOARD OF REGENTS 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
COMMISSIONER SHALL PROVIDE NOTICE OF SUCH REVOCATION TO THE  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-

A. 1826--C                         18

TION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO  THE  DEPART-
MENT OF TAXATION AND FINANCE.
  S  1215.  REPORTING  AND  RECORDKEEPING. 1. REPORTING. (A) EDUCATIONAL
SCHOLARSHIP  ORGANIZATIONS,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,   LOCAL
EDUCATION FUNDS, PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS.
  (I)  AN  EDUCATIONAL  SCHOLARSHIP ORGANIZATION THAT RECEIVES QUALIFIED
CONTRIBUTIONS SHALL REPORT TO THE DEPARTMENT OR THE BOARD OF REGENTS, ON
A FORM PRESCRIBED BY THE COMMISSIONER BY JANUARY  THIRTY-FIRST  OF  EACH
CALENDAR  YEAR.  SUCH  REPORT SHALL INCLUDE: (A) THE NAME AND ADDRESS OF
THE MEMBERS AND THE CHAIRPERSON OF THE GOVERNING BOARD OF THE  ORGANIZA-
TION,  (B) THE TOTAL NUMBER OF CERTIFICATES OF RECEIPT ISSUED DURING THE
IMMEDIATELY PRECEDING CALENDAR YEAR, (C)  THE  TOTAL  DOLLAR  AMOUNT  OF
QUALIFIED  CONTRIBUTIONS  RECEIVED,  AS  SET  FORTH  IN  CERTIFICATES OF
RECEIPT ISSUED DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR,  (D)  THE
TOTAL  NUMBER  OF  ELIGIBLE  PUPILS UTILIZING SCHOLARSHIPS FOR THE IMME-
DIATELY PRECEDING CALENDAR YEAR AND THE SCHOOL YEAR IN PROGRESS AND  THE
TOTAL DOLLAR VALUE OF THE SCHOLARSHIPS, (E) THE NAME AND ADDRESS OF EACH
QUALIFIED  SCHOOL  AT  WHICH  SCHOLARSHIPS ARE CURRENTLY BEING UTILIZED,
DETAILING THE NUMBER OF ELIGIBLE PUPILS AND THE TOTAL  DOLLAR  VALUE  OF
SCHOLARSHIPS  BEING UTILIZED AT EACH QUALIFIED SCHOOL, AND (F) ANY ADDI-
TIONAL RELATED INFORMATION REQUESTED BY THE COMMISSIONER.
  (II)  A  SCHOOL  IMPROVEMENT  ORGANIZATION  THAT  RECEIVES   QUALIFIED
CONTRIBUTIONS  SHALL  REPORT TO THE DEPARTMENT OR BOARD OF REGENTS, ON A
FORM PRESCRIBED BY THE COMMISSIONER  BY  JANUARY  THIRTY-FIRST  OF  EACH
CALENDAR  YEAR.  SUCH  REPORT SHALL INCLUDE: (A) THE NAME AND ADDRESS OF
THE MEMBERS AND THE CHAIRPERSON OF THE GOVERNING BOARD OF THE  ORGANIZA-
TION,  (B) THE TOTAL NUMBER OF CERTIFICATES OF RECEIPT ISSUED DURING THE
IMMEDIATELY PRECEDING CALENDAR YEAR, (C)  THE  TOTAL  DOLLAR  AMOUNT  OF
QUALIFIED  CONTRIBUTIONS  RECEIVED,  AS SET FORTH IN THE CERTIFICATES OF
RECEIPT ISSUED DURING THE IMMEDIATELY PRECEDING  CALENDAR  YEAR,  (D)  A
LIST OF THE EDUCATIONAL PROGRAMS THAT WERE PROVIDED TO PUBLIC SCHOOLS OR
PUBLIC  SCHOOL DISTRICTS DURING THE  IMMEDIATELY PRECEDING CALENDAR YEAR
THROUGH QUALIFIED CONTRIBUTIONS, INCLUDING THE  GEOGRAPHIC  LOCATION  OF
SUCH  PROGRAMS  BY  COUNTY,  AND  (E) ANY ADDITIONAL RELATED INFORMATION
REQUESTED BY THE COMMISSIONER.
  (III) A LOCAL EDUCATION FUND  THAT  RECEIVES  QUALIFIED  CONTRIBUTIONS
PURSUANT  TO THIS ARTICLE SHALL REPORT TO THE DEPARTMENT OR THE BOARD OF
REGENTS,  ON  A  FORM  PRESCRIBED  BY  THE   COMMISSIONER   BY   JANUARY
THIRTY-FIRST  OF EACH CALENDAR YEAR. SUCH REPORT SHALL INCLUDE:  (A) THE
NAME AND ADDRESS OF THE MEMBERS AND THE  CHAIRPERSON  OF  THE  GOVERNING
BOARD  OF  THE  ORGANIZATION,  (B)  THE  TOTAL NUMBER OF CERTIFICATES OF
RECEIPT ISSUED DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR,  (C)  THE
TOTAL  DOLLAR AMOUNT OF QUALIFIED CONTRIBUTIONS RECEIVED AS SET FORTH IN
THE CERTIFICATES OF RECEIPT  ISSUED  DURING  THE  IMMEDIATELY  PRECEDING
CALENDAR  YEAR, (D) THE NAME AND ADDRESS OF THE PUBLIC SCHOOLS OR PUBLIC
SCHOOL DISTRICTS THAT THE LOCAL  EDUCATION  FUND  SUPPORTED  DURING  THE
IMMEDIATELY  PRECEDING  CALENDAR  YEAR,  AND  (E) ANY ADDITIONAL RELATED
INFORMATION REQUESTED BY THE COMMISSIONER.
  (IV) A PUBLIC SCHOOL DISTRICT OR PUBLIC SCHOOL THAT RECEIVES QUALIFIED
CONTRIBUTIONS SHALL REPORT TO THE COMMISSIONER OR BOARD OF REGENTS, ON A
FORM PRESCRIBED BY THE COMMISSIONER  BY  JANUARY  THIRTY-FIRST  OF  EACH
CALENDAR  YEAR.  SUCH  REPORT  SHALL  INCLUDE:  (A)  THE TOTAL NUMBER OF
CERTIFICATES OF RECEIPT ISSUED DURING THE IMMEDIATELY PRECEDING CALENDAR
YEAR, (B) THE TOTAL DOLLAR AMOUNT OF QUALIFIED CONTRIBUTIONS RECEIVED AS
SET FORTH IN THE CERTIFICATES OF  RECEIPT  ISSUED  DURING  THE  PREVIOUS

A. 1826--C                         19

CALENDAR  YEAR,  AND (C) ANY ADDITIONAL RELATED INFORMATION REQUESTED BY
THE COMMISSIONER.
  (B) SUCH REPORT REQUIRED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION
FOR  A SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP FUND, OR
LOCAL EDUCATION FUND ALSO SHALL  INCLUDE:  (I)  CERTIFICATION  FROM  THE
DIRECTOR  OR  CHIEF EXECUTIVE OFFICER OF THE ORGANIZATION OR ENTITY THAT
SUCH ORGANIZATION OR ENTITY HAS COMPLIED WITH THE  APPLICABLE  REPORTING
REQUIREMENTS  OF  SUBDIVISION  (M)  OF SECTION FORTY-ONE OF THE TAX LAW,
(II) A COPY OF THE ORGANIZATION OR FUND'S  FEDERAL  FORM  990  OR  OTHER
FEDERAL  FORM  INDICATING  TAX  STATUS  OF  THE ORGANIZATION OR FUND FOR
FEDERAL TAX PURPOSES, (III) CERTIFICATION THAT SUCH ORGANIZATION OR FUND
USED, OR IN THE CASE OF EDUCATIONAL SCHOLARSHIP ORGANIZATIONS,  USED  OR
DESIGNATED,  AT  LEAST  NINETY  PERCENT  OF  THE QUALIFIED CONTRIBUTIONS
RECEIVED DURING THE REPORTING YEAR AND ANY INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS DURING SUCH MONTHS TO, IN THE CASE OF A SCHOOL IMPROVEMENT
ORGANIZATION, ASSIST IN THE PROVISION  OF  EDUCATIONAL  PROGRAMS  IN  AT
LEAST  ONE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT, OR IN THE CASE OF AN
EDUCATIONAL SCHOLARSHIP ORGANIZATION, PROVIDE SCHOLARSHIPS  TO  ELIGIBLE
STUDENTS, OR IN THE CASE OF A LOCAL EDUCATION FUND, SUPPORT AT LEAST ONE
PUBLIC  SCHOOL  OR  PUBLIC SCHOOL DISTRICT, (IV) CERTIFICATION THAT SUCH
ORGANIZATION OR FUND DEPOSITED AND HELD ALL QUALIFIED CONTRIBUTIONS  AND
ANY  INCOME  DERIVED FROM QUALIFIED CONTRIBUTIONS ARE DEPOSITED AND HELD
IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGANIZATION OR FUND'S OPERATING
OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR  INCOME  ARE  WITH-
DRAWN  FOR  USE,  AND (V) A COPY OF THE ORGANIZATION'S CURRENT FINANCIAL
STATEMENTS.
  (C) SUCH REPORT REQUIRED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION
FOR A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT  ALSO  SHALL  INCLUDE  (I)
CERTIFICATION  THAT  SUCH  PUBLIC  SCHOOL  OR PUBLIC SCHOOL DISTRICT HAS
COMPLIED WITH THE APPLICABLE REPORTING REQUIREMENTS OF  SUBDIVISION  (M)
OF  SECTION  FORTY-ONE  OF THE TAX LAW, AND (II) CERTIFICATION 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.
  (D) 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 (M) OF SECTION FORTY-ONE OF THE TAX LAW.
  2.  RECORDKEEPING.  EACH  EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL
IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC
SCHOOL DISTRICT THAT IS AUTHORIZED  TO  ISSUE  CERTIFICATES  OF  RECEIPT
SHALL  MAINTAIN  FULL AND ADEQUATE RECORDS OF THE FOLLOWING INFORMATION:
(A)  CREDIT  AUTHORIZATION  CERTIFICATES  RECEIVED  IN  ACCORDANCE  WITH
SECTION FORTY-ONE OF THE TAX LAW, (B) THE CERTIFICATES OF RECEIPT ISSUED
TO  TAXPAYERS  IN  ACCORDANCE WITH SECTION FORTY-ONE OF THE TAX LAW, AND
(C) ANY INFORMATION AS THE COMMISSIONER OR  THE  BOARD  OF  REGENTS  MAY
PRESCRIBE.
  S  1216. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON AN
EMERGENCY BASIS REGULATIONS NECESSARY FOR  THE  IMPLEMENTATION  OF  THIS
SECTION.  SUCH REGULATIONS SHALL CONSTRUE THE PROVISIONS OF THIS SECTION
IN SUCH A MANNER AS  TO  ENCOURAGE  QUALIFIED  CONTRIBUTIONS;  PROVIDED,
HOWEVER,  THAT  SUCH REGULATIONS SHALL NOT IMPOSE ANY NEW REQUIREMENT OR
BURDEN ON THE EDUCATIONAL PROGRAM, INSTRUCTION OR ACTIVITIES OF A PUBLIC
OR NON-PUBLIC SCHOOL; AND PROVIDED, FURTHER, THAT THE COMMISSIONER SHALL

A. 1826--C                         20

MAKE ANY APPLICATION REQUIRED TO  BE  FILED  PURSUANT  TO  THIS  ARTICLE
AVAILABLE  TO APPLICANTS WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS
ARTICLE.
  S  15.  The education law is amended by adding a new section 1503-a to
read as follows:
  S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
OF  A  GENERAL  LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL OR SPECIAL LAW TO THE  CONTRARY,  THE  RECEIPT  OF  SUCH  GIFTS,
DONATIONS,  CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-
FROM, SHALL BE DISREGARDED  FOR  THE  PURPOSES  OF  ALL  APPORTIONMENTS,
COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
  S 16. This act shall not be construed to authorize the commissioner of
education  or  the  commissioner  of  taxation and finance to impose any
regulation or requirement on the  educational  program,  instruction  or
activities  of  a  public education entity, school improvement organiza-
tion, local education fund or educational scholarship organization  that
receives  charitable contributions pursuant to this act, or a non-public
school with an eligible pupil who receives funding from  an  educational
scholarship  organization  pursuant  to  this  act,  unless specifically
authorized by this act.
  S 17. Severability. If any provision of this section or  the  applica-
tion  thereof to any person or circumstances is held invalid, such inva-
lidity shall not affect other provisions or applications of the  section
which  can be given effect without the invalid provision or application,
and to this end the provisions of this section are declared to be sever-
able.
  S 18. This act shall take effect immediately and shall apply to  taxa-
ble years beginning after December 31, 2014.

Co-Sponsors

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A1826D (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §39, amd §§208, 210, 606, 615, 1456, 1453, 1503 & 1511, Tax L; add Art 25 §§1209 - 1217, add §1503-a, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A5081C
2009-2010: A10862

A1826D (ACTIVE) - Bill Texts

view summary

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

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

                                 1826--D

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  CUSICK, THIELE, MARKEY, MALLIOTAKIS, LAVINE,
  GOLDFEDER, SIMANOWITZ, BROOK-KRASNY, BENEDETTO, CAMARA, KEARNS,  HEVE-
  SI,  PERRY,  BARRETT, BORELLI, CURRAN, WEPRIN, ROZIC, BRINDISI, CLARK,
  SKOUFIS, RODRIGUEZ, RUSSELL,  DenDEKKER,  GJONAJ,  MILLER,  SKARTADOS,
  MOSLEY,  GANTT, KELLNER, SALADINO, PALUMBO, FITZPATRICK -- Multi-Spon-
  sored by -- M. of A. ARROYO, AUBRY, BLANKENBUSH,  BRAUNSTEIN,  BUTLER,
  COLTON,  COOK,  CORWIN,  CRESPO, CROUCH, CYMBROWITZ, DAVILA, DiPIETRO,
  FARRELL, FINCH, GARBARINO, GIGLIO,  GOODELL,  GRAF,  HAWLEY,  HEASTIE,
  HENNESSEY,  HIKIND,  HOOPER,  JACOBS,  KATZ, KIM, KOLB, LALOR, LENTOL,
  P. LOPEZ, MAGEE, McDONALD, McLAUGHLIN, MONTESANO, MOYA,  NOJAY,  OAKS,
  ORTIZ,  OTIS, PALMESANO, PEOPLES-STOKES, PICHARDO, PRETLOW, RA, RAMOS,
  RIVERA, ROSA, SCHIMEL, SCHIMMINGER, SIMOTAS, SOLAGES,  STEC,  SWEENEY,
  TENNEY,  TITONE,  TITUS, WALTER, WEINSTEIN, WEISENBERG, WRIGHT -- read
  once and referred to the Committee on  Ways  and  Means  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  -- again reported from said committee with amend-
  ments, ordered reprinted as amended and recommitted to said  committee
  --  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 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. Legislative findings and intent. The legislature hereby finds and
declares that:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00834-30-4

A. 1826--D                          2

  a. The education of the children of this state is one of  the  founda-
tions  of  a  strong  society  that  requires an academically robust and
financially sound school system, both public and non-public;
  b.  At  a  time when the state is considering ways of reducing the tax
burden for New York state residents and educators are seeking an  expan-
sion  of financial resources, charitable giving for educational purposes
should be encouraged;
  c. Permitting public education entities such as school  districts  and
individual  public schools to accept and receive voluntary cash contrib-
utions will be beneficial to taxpayers and educators;
  d. Encouraging voluntary support for education, without prejudice  for
or  against  any  state-sanctioned  educational enterprise, promotes the
state's interest in providing the highest quality education to all chil-
dren in the state;
  e. The tax credit provided in this act is merely one of  many  credits
available to New York taxpayers;
  f.  The intended beneficiaries of the tax credits provided in this act
are the students who attend public schools, students who  further  their
educations  using  tuition  scholarships  from  educational  scholarship
organizations, and teachers who purchase with personal funds  to  supply
their  students  and  classrooms,  and who seek charitable donations for
classroom projects and initiatives;
  g. Permitting educators to claim a credit for the purchase  of  class-
room instructional materials and supplies will insure a wider availabil-
ity of such materials and supplies for all students.
  S  3.    The  tax law is amended by adding a new section 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.
  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 MORE THAN FIFTY PERCENT OF ITS SCHOLARSHIPS DURING
A CALENDAR YEAR TO ELIGIBLE PUPILS WHO RESIDE IN A HOUSEHOLD THAT HAS AN

A. 1826--D                          3

INCOME  NOT TO EXCEED ONE HUNDRED FIFTY PERCENT OF THE INCOME QUALIFICA-
TION REQUIRED FOR THE REDUCED PRICE SCHOOL LUNCHES  UNDER  THE  NATIONAL
SCHOOL  LUNCH  ACT, PROVIDED HOWEVER, FOR THE PURPOSES OF AN EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  FULFILLING  SUCH  REQUIREMENT, AN EDUCATIONAL
SCHOLARSHIP ORGANIZATION MAY ENTER INTO AN AGREEMENT WITH ANOTHER EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION OR ORGANIZATIONS TO JOINTLY REPORT THEIR
SCHOLARSHIP INFORMATION TO MEET SUCH REQUIREMENT, (IV) PROVIDES SCHOLAR-
SHIPS TO ELIGIBLE PUPILS FOR USE  AT  NOT  FEWER  THAN  THREE  QUALIFIED
SCHOOLS,  (V)  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 (VI) IS APPROVED TO
RECEIVE AUTHORIZED  CONTRIBUTIONS  AND  ISSUE  CERTIFICATES  OF  RECEIPT
PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW.
  5.  "ELIGIBLE  PUPIL"  MEANS A CHILD WHO (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 TWO HUNDRED FIFTY 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 THREE HUNDRED 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 A 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
RECEIVE  AUTHORIZED  CONTRIBUTIONS  AND  ISSUE  CERTIFICATES  OF RECEIPT
PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW.
  7.  "NON-PUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM  OR  ELEMENTARY  OR  SECONDARY  SECTARIAN OR NONSECTARIAN SCHOOL
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
TWENTY-FIVE OF THE EDUCATION LAW.
  9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR  SECONDARY  SCHOOL  IN
THIS STATE PURSUANT TO ARTICLE ELEVEN OF THE CONSTITUTION, BUT SHALL NOT
INCLUDE  A  CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE EDUCA-
TION LAW.

A. 1826--D                          4

  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 THE CONTRIBUTION AUTHORIZATION CERTIFICATE HAS BEEN ISSUED TO  THE
TAXPAYER  FOR  WHICH  THE TAXPAYER HAS RECEIVED A CERTIFICATE OF RECEIPT
FROM SUCH ENTITY, FUND OR ORGANIZATION.
  11. "QUALIFIED EDUCATOR" MEANS AN  INDIVIDUAL  WHO  IS  A  TEACHER  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, LEGAL GUARDIAN, OR  LEGAL  GUARDIANS  FOR
SUCH  ELIGIBLE  PUPIL'S  TUITION;  PROVIDED,  HOWEVER, IN THE CASE OF AN
ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL IN A  DISTRICT  OF  WHICH  SUCH
PUPIL  IS  NOT  A RESIDENT, THE AMOUNT OF THE 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, BUT ONLY IF THE SCHOOL DISTRICT OF
WHICH SUCH PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
  14. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS  A  NOT-FOR-PROFIT  ENTITY
WHICH  (I)  IS  EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II)  USES
AT  LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING
THE CALENDAR YEAR AND ANY INCOME DERIVED  FROM  QUALIFIED  CONTRIBUTIONS
DURING  SUCH  MONTHS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER
BY MAKING CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR  PUBLIC  SCHOOL
DISTRICTS LOCATED IN THIS STATE OR PROVIDING EDUCATIONAL PROGRAMS TO, OR
IN  CONJUNCTION  WITH,  ONE  OR  MORE  PUBLIC  SCHOOLS  OR PUBLIC SCHOOL
DISTRICTS LOCATED IN THIS STATE,  (III)  DEPOSITS  AND  HOLDS  QUALIFIED
CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT THAT IS SEPARATE FROM  THE  ORGANIZATION'S  OPERATING  OR  OTHER
FUNDS  UNTIL  SUCH  QUALIFIED  CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR
USE, AND (IV) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT  PURSUANT  TO
ARTICLE  TWENTY-FIVE OF THE EDUCATION LAW. SUCH TERM INCLUDES A PRE-KIN-
DERGARTEN 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 AN EDUCATION
INVESTMENT TAX 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 SEVENTY-FIVE
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 PART-
NERSHIP,  LIMITED LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT SUCH
A TAXPAYER SHALL NOT CLAIM CREDIT IN EXCESS OF THE LIMIT IMPOSED BY THIS
SUBDIVISION.

A. 1826--D                          5

  (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE. BEGINNING ON
THE SIXTEENTH DAY OF JANUARY OF EACH YEAR, THE COMMISSIONER SHALL  MAIN-
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

A. 1826--D                          6

PHASE  TWO  SHALL BE MAILED WITHIN FIVE DAYS OF RECEIPT OF SUCH APPLICA-
TIONS. PROVIDED, HOWEVER, THAT  NO  CONTRIBUTION  AUTHORIZATION  CERTIF-
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  CONTRIBUTIONS  LISTED  IN
THE  CERTIFICATE  MUST  BE  MADE,  WHICH SHALL BE NO LATER THAN NOVEMBER
THIRTIETH OF THE YEAR FOR WHICH THE CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATE WAS ISSUED, (III) THE TAXPAYER'S NAME AND ADDRESS, (IV) THE AMOUNT
OF  AUTHORIZED CONTRIBUTIONS, (V) THE CONTRIBUTION AUTHORIZATION CERTIF-
ICATE'S CERTIFICATE NUMBER, (VI) THE NAME  AND  ADDRESS  OF  THE  PUBLIC
EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND
OR EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR 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 ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE,
THE COMMISSIONER SHALL NOTIFY THE EDUCATIONAL SCHOLARSHIP  ORGANIZATION,
PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION OR LOCAL EDUCA-
TION  FUND OF THE ISSUANCE OF THE CONTRIBUTION AUTHORIZATION CERTIFICATE
TO A TAXPAYER.  SUCH NOTIFICATION SHALL INCLUDE (I) THE TAXPAYER'S  NAME
AND  ADDRESS,  (II) THE DATE SUCH CERTIFICATE WAS ISSUED, (III) THE DATE
BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE NOTIFICATION MUST  BE
MADE  BY  THE  TAXPAYER, (IV) THE AMOUNT OF THE AUTHORIZED CONTRIBUTION,
(V) CONTRIBUTION AUTHORIZATION CERTIFICATE, AND (VI) ANY OTHER  INFORMA-
TION 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
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  EDUCA-
TION  FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO THE TAXPAYER  A
WRITTEN  CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE TAXPAYER
CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON THE TAXPAY-
ER'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,

A. 1826--D                          7

SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION, (II) THE TAXPAYER'S NAME  AND  ADDRESS,  (III)
THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND
THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
TOTAL  AMOUNT  OF CONTRIBUTIONS, AND (VI) 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 (D) 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 DISCOVERY
OF THE FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGAN-
IZATION, 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 PARAGRAPHS
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 THE PERIOD FOR COMPLIANCE SET FORTH
IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL NOTI-
FY 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 UNDER THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE
THREE HUNDRED MILLION DOLLARS, PLUS ANY AMOUNTS THAT ARE REQUIRED TO  BE
ADDED TO THE CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  THE MAXI-
MUM  PERMITTED  CREDITS  UNDER  THIS SECTION FOR QUALIFIED CONTRIBUTIONS
SHALL BE ALLOCATED FIFTY PERCENT TO PUBLIC  EDUCATION  ENTITIES,  SCHOOL
IMPROVEMENT  ORGANIZATIONS,  AND LOCAL EDUCATION FUNDS AND FIFTY PERCENT
TO EDUCATIONAL SCHOLARSHIP ORGANIZATIONS.
  (I) ADDITIONS TO THE CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT. ANY
AMOUNTS FOR WHICH THE DEPARTMENT RECEIVES NOTIFICATION  OF  NON-ISSUANCE

A. 1826--D                          8

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
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  4.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 21 to read as follows:

A. 1826--D                          9

  (21) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH CREDIT IS CLAIMED
PURSUANT  TO  SUBDIVISION FORTY-EIGHT OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE.
  S 5. 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 THUS NOT
DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER  TO  THE  SUCCEEDING
FIVE  YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR
YEARS.
  S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is amended by adding a new clause (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 7. Section 606 of the tax law is amended by adding a new  subsection
(w) to read as follows:
  (W) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. (1) FOR TAXABLE YEARS
BEGINNING  ON  AND AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, A TAXPAYER
SHALL BE ALLOWED A CREDIT IN THE AMOUNT PAID BY THE TAXPAYER DURING  THE
TAXABLE  YEAR  FOR  INSTRUCTIONAL MATERIALS AND SUPPLIES WITH RESPECT TO
CLASSROOM BASED INSTRUCTION  IN  A  QUALIFIED  SCHOOL,  OR  TWO  HUNDRED
DOLLARS,  WHICHEVER  IS LESS; 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
AMOUNTS PAID FOR INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE DESIGNATED
FOR CLASSROOM USE 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
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  8.  Subsections  (yy)  and  (zz)  of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of  2003  are
relettered  subsections  (yyy)  and  (zzz)  and a new subsection (xx) is
added 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

A. 1826--D                         10

TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S 9. Subsection (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 (KK)  OF  SECTION  SIX
HUNDRED SIX OF THIS ARTICLE.
  S  10. 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 ENTI-
TY WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II)  USES
OR  DESIGNATES  AT  LEAST  NINETY  PERCENT OF THE REVENUE FROM QUALIFIED
CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY  INCOME  DERIVED
FROM  QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (III) PROVIDES MORE THAN
FIFTY PERCENT OF ITS SCHOLARSHIPS DURING A  CALENDAR  YEAR  TO  ELIGIBLE
PUPILS  WHO  RESIDE  IN A HOUSEHOLD THAT HAS AN INCOME NOT TO EXCEED ONE
HUNDRED FIFTY PERCENT OF  THE  INCOME  QUALIFICATION  REQUIRED  FOR  THE
REDUCED  PRICE  SCHOOL  LUNCHES  UNDER  THE  NATIONAL  SCHOOL LUNCH ACT,
PROVIDED HOWEVER FOR THE PURPOSES OF AN EDUCATIONAL  SCHOLARSHIP  ORGAN-
IZATION  FULFILLING  SUCH REQUIREMENT, AN EDUCATIONAL SCHOLARSHIP ORGAN-
IZATION MAY ENTER INTO AN AGREEMENT WITH ANOTHER EDUCATIONAL SCHOLARSHIP

A. 1826--D                         11

ORGANIZATION OR ORGANIZATIONS TO JOINTLY REPORT THEIR SCHOLARSHIP INFOR-
MATION TO MEET SUCH  REQUIREMENT;  (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)  PROVIDES  SCHOLARSHIPS TO ELIGIBLE PUPILS FOR USE AT NOT
FEWER THAN THREE QUALIFIED SCHOOLS.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (I) IS A RESIDENT OF THIS STATE,
(II) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF  SECTION  THIR-
TY-TWO  HUNDRED  TWO  OF  THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR
BEFORE DECEMBER FIRST OF THE YEAR  IN  WHICH  THEY  ARE  ENROLLED  IN  A
PRE-KINDERGARTEN  PROGRAM,  (III) ATTENDS OR IS ABOUT TO ATTEND A QUALI-
FIED SCHOOL, AND (IV)  RESIDES  IN  A  HOUSEHOLD  WHICH  HAS  A  FEDERAL
ADJUSTED  GROSS  INCOME  OF  TWO HUNDRED FIFTY 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 DEPEND-
ENT CHILD, NOT TO EXCEED THREE HUNDRED 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 A 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, AND (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.
  7.   "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM OR ELEMENTARY, SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL, OTHER
THAN A PUBLIC SCHOOL, THAT IS  PROVIDING  INSTRUCTION  AT  ONE  OR  MORE
LOCATIONS  TO  AN  ELIGIBLE  PUPIL IN ACCORDANCE WITH SUBDIVISION TWO OF
SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
  8. "PUBLIC EDUCATION ENTITY" MEANS  A  PUBLIC  SCHOOL  DISTRICT  OR  A
PUBLIC  SCHOOL,  PROVIDED  THAT  SUCH  PUBLIC  SCHOOL DISTRICT OR PUBLIC
SCHOOL 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 FROM OPER-
ATING OR OTHER FUNDS AND IS APPROVED TO RECEIVE AUTHORIZED CONTRIBUTIONS
AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR  SECONDARY  SCHOOL  IN
THIS  STATE PURSUANT TO ARTICLE ELEVEN OF THE NEW YORK CONSTITUTION, BUT
SHALL NOT INCLUDE A CHARTER SCHOOL AUTHORIZED BY  ARTICLE  FIFTY-SIX  OF
THIS CHAPTER.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A  TAXPAYER  TO  A PUBLIC EDUCATION ENTITY, LOCAL EDUCATION FUND, SCHOOL
IMPROVEMENT DISTRICT 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.

A. 1826--D                         12

  12.  "QUALIFIED  SCHOOL"  MEANS  A  PUBLIC  SCHOOL OR NONPUBLIC SCHOOL
LOCATED IN THIS STATE.
  13.    "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT
AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL IN  AN  AMOUNT
NOT  TO  EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL LESS ANY OTHER
EDUCATIONAL SCHOLARSHIP OR TUITION GRANT RECEIVED BY SUCH ELIGIBLE PUPIL
OR HIS OR HER PARENT, PARENTS, LEGAL GUARDIAN  OR  LEGAL  GUARDIANS  FOR
SUCH  ELIGIBLE  PUPIL'S  TUITION;  PROVIDED,  HOWEVER, IN THE CASE OF AN
ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL IN A  DISTRICT  OF  WHICH  SUCH
PUPIL  IS  NOT  A RESIDENT, THE AMOUNT OF THE 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,  LEGAL  GUARDIAN  OR  LEGAL GUARDIANS FOR SUCH ELIGIBLE PUPIL'S
TUITION, BUT ONLY IF THE SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A  RESI-
DENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
  14.  "SCHOOL  IMPROVEMENT  ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY
THAT (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C)
OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II)  USES  AT
LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE
CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING
SUCH MONTHS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS  LOCATED
IN  THIS  STATE  IN  THEIR  PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY
MAKING CONTRIBUTIONS TO ONE OR MORE  PUBLIC  SCHOOLS  OR  PUBLIC  SCHOOL
DISTRICTS LOCATED IN THIS STATE OR PROVIDING EDUCATIONAL PROGRAMS TO, OR
IN  CONJUNCTION  WITH,  ONE  OR  MORE  PUBLIC  SCHOOLS  OR PUBLIC SCHOOL
DISTRICTS LOCATED IN THIS STATE,  (III)  DEPOSITS  AND  HOLDS  QUALIFIED
CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT THAT IS SEPARATE FROM  THE  ORGANIZATION'S  OPERATING  OR  OTHER
FUNDS  UNTIL  SUCH  QUALIFIED  CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR
USE, AND (IV) IS APPROVED TO 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 (I) SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT
AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED  FROM  QUALIFIED
CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL OR SCHOOL
DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
OR  INCOME  ARE  WITHDRAWN  FOR  USE,  OR  (II) 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 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

A. 1826--D                         13

OF REGENTS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND
MANNER PRESCRIBED BY THE BOARD OF REGENTS, PROVIDED THAT  SUCH  APPLICA-
TION  SHALL  INCLUDE:  (1)  SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL
IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION HAS BEEN GRANTED EXEMPTION FROM TAXATION  UNDER  PARA-
GRAPH  THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTER-
NAL REVENUE CODE; (2) A LIST OF NAMES AND ADDRESSES OF  ALL  MEMBERS  OF
THE GOVERNING BOARD OF THE SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
TION  FUND  OR  EDUCATIONAL  SCHOLARSHIP ORGANIZATION; AND (3) AN EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION SHALL PROVIDE CRITERIA FOR THE  AWARDING
OF SCHOLARSHIPS TO ELIGIBLE STUDENTS.
  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  RECEIPT
OF SUCH APPLICATION, PROVIDED, HOWEVER THAT IF IT IS NOT PRACTICABLE 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, THE DEPARTMENT OR THE BOARD OF REGENTS WHEN REQUESTED
BY THE DEPARTMENT OR BOARD, OR (4) THE FAILURE TO PROVIDE NOTICE TO  THE
DEPARTMENT  OF  TAXATION  AND FINANCE OF THE ISSUANCE OR NON-ISSUANCE 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 TAX  LAW  UNLESS  THE
COMMISSIONER   OF   TAXATION  AND  FINANCE  AGREES  THAT  REVOCATION  IS
WARRANTED; AND PROVIDED FURTHER THAT THE  BOARD  OF  REGENTS  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
COMMISSIONER SHALL PROVIDE NOTICE OF SUCH REVOCATION TO THE  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
TION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO  THE  DEPART-
MENT OF TAXATION AND FINANCE.
  S  1215.  REPORTING  AND RECORDKEEPING. 1. REPORTING. EACH EDUCATIONAL
SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL  EDUCA-
TION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT RECEIVES QUALI-
FIED  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.

A. 1826--D                         14

  2. RECORDKEEPING. EACH EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  SCHOOL
IMPROVEMENT 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
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  11.  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  12.  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  13. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2014.

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