senate Bill S4099A

2013-2014 Legislative Session

Establishes the "education investment incentives act" and tax credit

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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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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to investigations and government operations
Jun 04, 2013 print number 4099a
amend (t) and recommit to investigations and government operations
Mar 08, 2013 referred to investigations and government operations

Bill Amendments

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A (Active)
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S4099 - 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, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2732C
2009-2010: S5146A

S4099 - Bill Texts

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

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BILL NUMBER:S4099

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

PURPOSE: This bill would authorize a tax credit up to seventy-five
percent of either personal income tax liability or corporate franchise
tax liability for donations to public education entities, local
education funds, and educational scholarship organizations, or up to
$75 for certain expenses incurred by school personnel and parents who
educate their children at home.

SUMMARY OF PROVISIONS:

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

Section two provides the Legislative findings and intent.

Section three amends Tax law section 606 by adding six new
subdivisions. New subdivision 606(u) defines terms, including the
following:

"Public education entity" is defined as any public school district; an
individual public school, including a charter school; a nonprofit
organization for the purpose of providing programming for performing
arts, visual arts, civic instruction, prekindergarten 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.

"Local education fund" is defined as a charitable organization in this
state that is exempt from federal taxation under section 501(c)(3) of
the Internal Revenue Code and is established for the explicit purpose
of supporting at least one public school, including a charter school,
or a specific public school district.

"Educational scholarship organization" is defined as a charitable
organization in this state that is exempt from federal taxation under
section 501(c)(3) of the Internal Revenue Code, that allocates at
least ninety percent of its donations for educational scholarships.

New subdivision 606(v) provides the contributions to public education
credit, which allows a taxpayer to receive a tax credit for
contributions made to a public education entity. The amount of the
credit is the lesser of 100% of the amount contributed or 75% of the
taxpayer's liability.

New subdivision 606(w) provides the contributions to local education
fund credit, which allows a taxpayer to receive a tax credit for
contributions made to a local education fund The amount of the credit
is the lesser of 100% of the amount contributed or 75% of the
taxpayer's liability.


New subdivision 606(w-1) provides the home-based instructional
materials credit. The amount of the credit is 100% of the amounts used
to purchase instructional materials for home-based educational
programs.

New subdivision 606(w-2) provides the classroom instructional
materials and supplies credit for people employed at a public, charter
or non-public school. The amount of the credit is 100% of the amounts
used to purchase instructional materials and supplies for use in a
classroom, up to $75.

New subdivision 606(w-3) provides the contributions to educational
scholarship organization credit, which allows a taxpayer to receive a
tax credit for contributions made to an educational scholarship
organization. The amount of the credit is the lesser of 100% of the
amount contributed or 75% of the taxpayer's liability.

Section 4 amends section 210 of the Tax Law by adding four new
subdivisions. New subdivision 210(46) provides the definitions of
terms used in the new subdivisions; these definitions also found in
new subdivision 606(u). New subdivision 210(47) provides the
contributions to public education credit, which is substantially
similar to the credit provided by new subdivision 606(v),. New
subdivision 210(48) provides the contributions to local education fund
credit, which is substantially similar to the credit provided by new
subdivision 606(w). New subdivision 210(49) provides the contributions
to educational scholarship organization credit, which is substantially
similar to the credit provided by new subdivision 606(w-3).

Section 5 requires approval of tax credits on a first-come,
first-served basis and provides that no taxpayer may apply for a
credit in excess of 5% of $125 million for tax year 2014, and in
excess of 5% of $150 million for tax years thereafter. Further,
section 5 disallows the portion of the credit equal to the amount
saved from the federal tax liability given a taxpayer's donation to an
IRS recognized 501(c)(3) charitable organization.

Section 5 also provides that fifty percent of the available credits be
afforded to taxpayers donating to public education entities, local
education funds, and for the purchase by school personnel for
classroom instructional material and supplies, and that fifty percent
be afforded to educational scholarship organizations and for
home-based instructional materials.

Section 6 imposes reporting requirements of the tax credits from the
department of taxation and finance to the governor, temporary
president of the senate, speaker of the assembly, and chairs of the
senate finance, and assembly ways and means committees.

Section 7 restricts the Commissioners of Education and Taxation &
Finance from imposing additional regulations on educational programs
in receipt of funding from educational scholarship organizations.

Section 8 provides that this act shall take effect immediately.

EXISTING LAW: New law


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

LEGISLATIVE HISTORY: 2012: S.2732-C - Passed Senate 2011: S.2732 -
Passed Senate 2010: S.5146-A - Senate Finance Committee 2009: S.5416 -
Senate Finance Committee

FISCAL IMPLICATIONS: $250 million for calendar year 2014 and $300
million for each calendar year beginning in 2015. The bill has the
potential to generate $333 million in voluntary contributions to
support K-12 education in New York State. Stabilizing the independent
and religious sector will significantly lessen the need for local
school tax increases as well as for the issuance of bonds for new
public school construction, generating further savings for the state.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  4099

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 8, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in  relation  to  enacting  the  "education
  investment incentives act"

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "education investment incentives act".
  S 2. Legislative findings and intent. The legislature hereby finds and
declares that:
  a.  At  a  time when the state is considering ways of reducing the tax
burden for New York state residents and educators are seeking an  expan-
sion  of financial resources, charitable giving for educational purposes
should be stimulated;
  b. Permitting public education entities such as school  districts  and
individual  public  schools,  including  charter  schools, to accept and
receive voluntary cash contributions will lessen the need for additional
tax revenue;
  c. Encouraging voluntary support for education, without prejudice  for
or  against  any  state-sanctioned  educational enterprise, promotes the
state's interest in providing the highest quality education to all chil-
dren in the state;
  d. Requiring a sharing of resources among school districts will insure
a more equitable distribution of financial support;
  e. The tax credit provided in this act is merely one of  many  credits
available to New York taxpayers;
  f.  The  intended beneficiaries of the tax credit provided in this act
are the students who attend public schools, including  charter  schools,
or  who  further their educations using tuition scholarships from educa-
tional scholarship  organizations,  or  who  participate  in  home-based

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00834-02-3

S. 4099                             2

educational  programs;  therefore  the  tax  credit  does not constitute
public aid to non-public sectarian institutions;
  g.  Permitting  school personnel to claim a credit for the purchase of
classroom instructional materials  and  supplies  will  insure  a  wider
availability of such materials and supplies for all students.
  S  3.  Section  606  of  the  tax  law  is  amended  by adding six new
subsections (u), (v), (w), (w-1), (w-2) and (w-3) to read as follows:
  (U) DEFINITIONS. AS USED IN SUBSECTIONS (V),  (W),  (W-1),  (W-2)  AND
(W-3)  OF  THIS  SECTION,  THE  FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
  (1) "PUBLIC EDUCATION ENTITY" SHALL MEAN ANY PUBLIC SCHOOL DISTRICT OR
ANY INDIVIDUAL PUBLIC SCHOOL, INCLUDING ANY CHARTER SCHOOL; A  NONPROFIT
ORGANIZATION  FOR  THE  PURPOSE  OF PROVIDING PROGRAMMING FOR PERFORMING
ARTS, VISUAL ARTS, CIVIC INSTRUCTION, PRE-KINDERGARTEN  INSTRUCTION,  OR
ANY OTHER EDUCATIONAL PURPOSE WITHIN SUCH SCHOOLS; A NONPROFIT ORGANIZA-
TION THAT ALLOWS DONORS TO CHOOSE SCHOOL PROJECTS FOR CHARITABLE SUPPORT
THAT  ARE  IDENTIFIED  BY  TEACHERS  OR  OTHER SCHOOL PERSONNEL; AND THE
UNIVERSITY OF THE STATE OF NEW YORK RESEARCH FUND.
  (2) "LOCAL EDUCATION FUND" SHALL MEAN  A  CHARITABLE  ORGANIZATION  IN
THIS STATE THAT:
  (A)  IS  EXEMPT  FROM FEDERAL TAXATION UNDER SECTION 501 (C)(3) OF THE
INTERNAL REVENUE CODE; AND
  (B) IS ESTABLISHED FOR THE EXPLICIT PURPOSE OF SUPPORTING AT LEAST ONE
PUBLIC SCHOOL, INCLUDING A CHARTER SCHOOL, OR 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
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  RECEIVES  AN

S. 4099                             3

AUTHORIZED  CERTIFICATE  OF  RECEIPT  SHALL  BE  ALLOWED A CREDIT, TO BE
COMPUTED  AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (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. CHARTER SCHOOLS SHALL  MAKE  SUCH
REPORTS  TO THE RESPECTIVE CHARTER SCHOOL BOARD OF TRUSTEES, AS APPLICA-
BLE.
  (W) CONTRIBUTIONS TO LOCAL EDUCATION FUND CREDIT. IN LIEU OF  CONTRIB-
UTIONS  IN SUBSECTION (V) OF THIS SECTION, A CREDIT IS ALLOWED FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN FOR
THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE  TAXPAYER  DURING
THE  TAXABLE  YEAR TO A LOCAL EDUCATION FUND. A TAXPAYER WHO RECEIVES AN
AUTHORIZED CERTIFICATE OF RECEIPT SHALL  BE  ALLOWED  A  CREDIT,  TO  BE
COMPUTED  AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (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

S. 4099                             4

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 TAXPAYERS' TAX  LIABILITY  IN  ANY  TAXABLE
YEAR  THAT  DO  NOT  RECEIVE  A  TAX CREDIT SHALL BE CONSIDERED ELIGIBLE
DEDUCTIONS AS ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS.
  (5) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
EDUCATION FUND FOR THE BENEFIT OF A DESIGNATED STUDENT.
  (W-1) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. IN LIEU  OF  CONTRIB-
UTIONS  IN  SUBSECTIONS (V) AND (W) OF THIS SECTION, A CREDIT IS ALLOWED
FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
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,
INCLUDING ANY CHARTER SCHOOL, OR IN ANY ELIGIBLE NON-PUBLIC  SCHOOL  FOR
THE PURCHASE OF CLASSROOM INSTRUCTIONAL 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, INCLUDING A CHARTER SCHOOL,  OR  AN  ELIGIBLE  NON-PUBLIC
SCHOOL.
  (W-3) CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATION CREDIT. IN
LIEU  OF  CONTRIBUTIONS  IN SUBSECTIONS (V) AND (W) OF THIS SECTION, FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  FOUR-

S. 4099                             5

TEEN, A CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS
MADE  BY THE TAXPAYER DURING THE TAXABLE YEAR TO AN EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION. A TAXPAYER WHO RECEIVES 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 TAXPAYERS' TAX LIABILITY IN ANY
TAXABLE YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGI-
BLE DEDUCTIONS AS ALLOWED UNDER THIS  ARTICLE  FOR  CHARITABLE  CONTRIB-
UTIONS.
  (5)  THIS  TAX  CREDIT  MAY  NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE  BENEFIT  OF  A  DESIGNATED
PUPIL.
  (6) SCHOLARSHIP AMOUNT.
  (A) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD A SCHOLARSHIP TO A
NON-DISTRICT  RESIDENT ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL OPERATED
BY A SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED THE TUITION  CHARGED  BY
THE  PARTICIPATING  PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION
FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION  LAW,  PROVIDED,
HOWEVER  THAT A SCHOLARSHIP SHALL NOT BE AVAILABLE IN ANY CASE WHERE THE
RESIDENT DISTRICT OF SUCH PUPIL IS LIABLE FOR SUCH TUITION.
  (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:

S. 4099                             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, INCLUDING ANY CHARTER SCHOOL; A NONPROFIT
ORGANIZATION FOR THE PURPOSE OF  PROVIDING  PROGRAMMING  FOR  PERFORMING
ARTS,  VISUAL  ARTS, CIVIC INSTRUCTION, PRE-KINDERGARTEN INSTRUCTION, OR
ANY OTHER EDUCATIONAL PURPOSE WITHIN SUCH SCHOOLS; A NONPROFIT ORGANIZA-
TION THAT ALLOWS DONORS TO CHOOSE SCHOOL PROJECTS FOR CHARITABLE SUPPORT
THAT ARE IDENTIFIED BY TEACHERS  OR  OTHER  SCHOOL  PERSONNEL;  AND  THE
UNIVERSITY OF THE STATE OF NEW YORK RESEARCH FUND.
  (B)  "LOCAL  EDUCATION  FUND"  SHALL MEAN A CHARITABLE ORGANIZATION IN
THIS STATE THAT:
  (1) IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)  (3)  OF  THE
INTERNAL REVENUE CODE; AND
  (2) IS ESTABLISHED FOR THE EXPLICIT PURPOSE OF SUPPORTING AT LEAST ONE
PUBLIC  SCHOOL,  INCLUDING A CHARTER SCHOOL, OR 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) IN LIEU OF CONTRIB-
UTIONS IN SUBDIVISIONS FORTY-EIGHT AND FORTY-NINE OF THIS  SECTION,  FOR
TAXABLE  YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND FOUR-
TEEN, A CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS
MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO A PUBLIC EDUCATION ENTI-
TY. ACCEPTANCE AND RECEIPT OF ALL SUCH CONTRIBUTIONS SHALL BE PERMITTED.
A TAXPAYER WHO RECEIVES 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 TAXA-
BLE YEAR, NOT TO EXCEED SEVENTY-FIVE PERCENT OF THE  TAX  DUE  FROM  THE

S. 4099                             7

TAXPAYER  UNDER  THIS  ARTICLE IN THE TAXABLE YEAR, AFTER APPLICATION OF
ANY OTHER ALLOWABLE CREDITS BY THE TAXPAYER.
  (B) SUCH CONTRIBUTIONS SHALL BE DEPOSITED IN A SEPARATE ACCOUNT.
  (C)  IF  MADE  TO A PUBLIC SCHOOL DISTRICT SUCH CONTRIBUTIONS SHALL BE
SUPERVISED BY A PERSON SO DESIGNATED BY THE  CHANCELLOR  OR  SUPERINTEN-
DENT.  IF  MADE  TO  A PARTICULAR SCHOOL THEY SHALL BE SUPERVISED BY THE
SCHOOL PRINCIPAL. REPORTS OF DEPOSITS AND DISBURSEMENTS SHALL BE MADE TO
THE LOCAL BOARD OF EDUCATION ANNUALLY. CHARTER SCHOOLS SHALL  MAKE  SUCH
REPORTS TO THE RESPECTIVE CHARTER SCHOOL BOARD OF TRUSTEES.
  48.  CONTRIBUTIONS  TO  LOCAL  EDUCATION  FUND  CREDIT. (A) IN LIEU OF
CONTRIBUTIONS  IN  SUBDIVISIONS  FORTY-SEVEN  AND  FORTY-NINE  OF   THIS
SECTION,  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 RECEIVES  AN  AUTHORIZED  CERTIFICATE  OF
RECEIPT  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED AS HEREINAFTER
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.  IN
LIEU  OF  CONTRIBUTIONS  IN  SUBDIVISIONS FORTY-SEVEN AND FORTY-EIGHT OF
THIS SECTION, A CREDIT IS ALLOWED  FOR  THE  AMOUNT  OF  VOLUNTARY  CASH
CONTRIBUTIONS  MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO AN EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION. A TAXPAYER WHO RECEIVES  AN  AUTHORIZED
CERTIFICATE  OF  RECEIPT  SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS
HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (A) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE  HUNDRED  PERCENT
OF  SUCH  CONTRIBUTIONS  IN ANY TAXABLE YEAR, NOT TO EXCEED SEVENTY-FIVE
PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE IN THE TAXA-
BLE YEAR, AFTER APPLICATION  OF  ANY  OTHER  ALLOWABLE  CREDITS  BY  THE
TAXPAYER.
  (B)  THIS  TAX  CREDIT  MAY  NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE  BENEFIT  OF  A  DESIGNATED
PUPIL.
  (C)  SCHOLARSHIP AMOUNT. (1) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY
AWARD A SCHOLARSHIP TO A NON-DISTRICT RESIDENT ELIGIBLE PUPIL  ATTENDING
A PUBLIC SCHOOL OPERATED BY A SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED
THE TUITION CHARGED BY THE PARTICIPATING PUBLIC SCHOOL PURSUANT TO PARA-
GRAPH  D  OF  SUBDIVISION  FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE
EDUCATION LAW; PROVIDED, HOWEVER THAT A SCHOLARSHIP SHALL NOT BE  AVAIL-
ABLE IN ANY CASE WHERE THE RESIDENT DISTRICT OF SUCH PUPIL IS LIABLE FOR
SUCH TUITION.
  (2) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD A SCHOLARSHIP TO A
PUPIL  ENROLLED  IN  A  PUBLIC SCHOOL, INCLUDING A CHARTER SCHOOL, OR AN
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. 4099                             8

  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:
  (1)  MAINTAIN  A  LIST  OF  PUBLIC SCHOOL DISTRICTS, INDIVIDUAL PUBLIC
SCHOOLS, INCLUDING CHARTER SCHOOLS, LOCAL EDUCATION  FUNDS,  AND  EDUCA-
TIONAL SCHOLARSHIP ORGANIZATIONS; AND
  (2)  APPROVE  TAX CREDITS ON A FIRST-COME, FIRST-SERVE BASIS FROM EACH
TAXPAYER WHO SUBMITS TO THE DEPARTMENT AN APPLICATION  PREPARED  BY  THE
COMMISSIONER  WHEREIN  THE TAXPAYER SHALL SPECIFY EACH TAX FOR WHICH THE
TAXPAYER REQUESTS A CREDIT AND THE APPLICABLE TAXABLE YEAR FOR A CREDIT,
SUBJECT TO THE LIMITS SET FORTH IN PARAGRAPH SIX OF THIS SUBDIVISION AND
PROVIDED THAT NO TAXPAYER MAY APPLY FOR  A  CREDIT  IN  EXCESS  OF  FIVE
PERCENT  OF  ONE  HUNDRED  TWENTY-FIVE  MILLION DOLLARS FOR TAX YEAR TWO
THOUSAND FOURTEEN AND ONE HUNDRED FIFTY MILLION DOLLARS  FOR  TAX  YEARS
BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN; AND
  (3)  UPON NOTIFICATION BY THE CHIEF EXECUTIVE OFFICER OF ANY EDUCATION
ENTITY SO LISTED THAT A CONTRIBUTION HAS BEEN RECEIVED,  SUCH  NOTIFICA-
TION  BEING  WITHIN  ONE BUSINESS DAY OF SAID RECEIPT, RECORD THE AMOUNT
AND DATE OF THE CONTRIBUTION, THE NAME AND ADDRESS OF  THE  CONTRIBUTOR;
AND
  (4)  UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF INSTRUCTIONAL
MATERIALS FOR NON-PUBLIC HOME-BASED  EDUCATIONAL  PROGRAMS,  RECORD  THE
AMOUNT  AND DATE OF THE NOTIFICATION, THE NAME AND ADDRESS OF THE CLAIM-
ANT; AND
  (5) UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF THE  CLASSROOM
INSTRUCTIONAL MATERIALS AND SUPPLIES FOR USE IN A PUBLIC SCHOOL, INCLUD-
ING  A  CHARTER  SCHOOL,  OR  AN  ELIGIBLE NON-PUBLIC SCHOOL, RECORD THE
AMOUNT AND DATE OF THE NOTIFICATION AND THE  NAME  AND  ADDRESS  OF  THE
CLAIMANT; AND
  (6)  MAKE  NO  MORE  THAN TWO HUNDRED FIFTY MILLION DOLLARS IN CREDITS
AVAILABLE IN ANY SINGLE TAX YEAR, PROVIDED THAT FIFTY  PERCENT  OF  SUCH
CREDITS  SHALL  BE  AFFORDED  TO  TAXPAYERS WHO MAKE DONATIONS TO PUBLIC
EDUCATION ENTITIES AND LOCAL EDUCATION FUNDS, AND FOR  THE  PURCHASE  BY
SCHOOL PERSONNEL, OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES, AND
THAT FIFTY PERCENT OF SUCH CREDITS SHALL BE AFFORDED TO EDUCATION SCHOL-
ARSHIP   ORGANIZATIONS   AND  FOR  HOME-BASED  INSTRUCTIONAL  MATERIALS,
PROVIDED FURTHER, THAT BEGINNING IN TAX YEAR TWO  THOUSAND  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. 4099                             9

  S  6.   The department of taxation and finance shall prepare a written
report before January 31 of each  calendar  year,  which  shall  contain
statistical  information  regarding  the  credits  allowed  pursuant  to
subsections (u), (v), (w), (w-1), (w-2) and (w-3)  of  section  606  and
subdivisions 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  7. 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 8. This act shall take effect immediately.

Co-Sponsors

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S4099A (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, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2732C
2009-2010: S5146A

S4099A (ACTIVE) - Bill Texts

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

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BILL NUMBER:S4099A

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

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

SUMMARY OF PROVISIONS:

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

Section two provides the Legislative findings and intent.

Section three of the bill adds new section 39 to the Tax Law, which is
the education incentives tax credit. New section 39 provides a tax
credit to individuals and Article 9-A, 32 and 33 businesses for
qualified contributions to public education entities, local education
funds, and educational scholarship organizations, Prior to making a
contribution, a taxpayer must apply to the Department of Taxation and
Finance ("DTF") for a contribution authorization certificate, which
will list the amount of the authorized contribution and the entity,
public school or public school district for which the contribution is
authorized. Taxpayers have 60 days from the issuance of the
contribution authorization certificate to make the contribution to the
named entity, public school, or public school district. Upon receipt
of a timely authorized contribution, the recipient will issue a
certificate of receipt to the taxpayer. If a contribution is not
timely received, the recipient named in the contribution authorization
certificate will notify DTF. The amount of the authorized contribution
will be added to the maximum amount of credit available in the
immediately following calendar year.

The maximum amount that a taxpayer may list in the application filed
with DTF is the lesser of 75% of the taxpayer's tax liability for the
immediately preceding taxable year or 5% of the credit cap. The
maximum amount of credit that a taxpayer may claim for any year is the
lesser of 75% of the taxpayer's tax liability for the taxable year,
after the application of all other allowable credits, 5% of the credit
cap for the year in which the tax return is filed, or the aggregate
amounts listed on the credit authorization certificates issued to the
taxpayer plus any amount carried over from a prior year. Any amount of
qualified contributions in excess of the taxpayer's tax for the
taxable year may be carried forward.

The credit is capped at $250 million for calendar year 2014 and $300
million plus any amounts required to be added to the cap due to
authorized contributions that were not timely made for each year
beginning in calendar year 2015. One half of the annual cap will be
available for qualified contributions made to public education
entities and local education funds and one half of the annual cap will
be available to educational scholarship organizations.


Section three of the bill also provides definitions for terms such as
"authorized contribution," "public education entity," "local education
fund," and "educational scholarship organization."

Finally, section three provides reporting requirements for public
education entities, local education funds, and educational scholarship
organizations, as well as a joint report from the Commissioner and the
Commissioner of the Department of Education. The joint report shall
include, among other things, statistics regarding the number of
qualified contributions made to each type of recipient, the
distribution of the recipients by county, and the aggregate amount of
credit claimed by tax type.

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

Section five of the bill amends Tax Law section 210 to add a new
subdivision (45) to provide the mechanism for Article 9-A taxpayers to
claim the education investment incentives credit.

Section six of the bill amends Tax law section 606(i)(1)(B) to add a
new clause (xxxvi) to provide the mechanism for S Corporations to
claim the education investment incentives credit.

Section seven of the bill amends section 606 of the Tax Law to add two
new subsections (w) and (w-1). New subdivision 606(w) provides the
home-based instructional materials credit. The amount of the credit is
the lesser of $100 or 100% of the amount used to purchase
instructional materials for home-based educational programs. New
subdivision 606(w-1) provides the classroom instructional materials
and supplies credit for people employed at a public, charter or
non-public school. The amount of the credit is the lesser of $75 or
100% of the amounts used to purchase instructional materials and
supplies for use in a classroom.

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

Section nine of the bill amends Tax Law section 615(g) by adding a new
paragraph (3) to provide that if a taxpayer claims a charitable
contribution deduction at the Federal level for any amount claimed as
a credit pursuant to section 606(8) (ww), such amount must be added
back to the New York adjusted income computation.

Section ten of the bill amends Tax Law 1456 by adding a new
subdivision (aa) to provide the mechanism for Article 32 taxpayers to
claim the education investment incentives credit

Section eleven of the bill amends Tax Law 1453(b) by adding a new
paragraph (16) to require that if a taxpayer claims a charitable
contribution deduction at the Federal level for any amount claimed as
a credit pursuant to section 1456(aa), such amount must be added back
to the taxpayer's entire net income computation.


Section twelve of the bill amends Tax Law 1503(b)(2) by adding a new
subparagraph (w) to require that if a taxpayer claims a charitable
contribution deduction at the Federal level for any amount claimed as
a credit pursuant to section 1511(dd), such amount must be added back
to the taxpayer's entire net income computation.

Section thirteen of the bill amends tax Law section 1511 by adding a
new subdivision (dd) to provide the mechanism for Article 33 taxpayers
to claim the education investment incentives credit.

Section fourteen of the bill amends the Education Law to add a new
Article 25, entitled the "Education Investment Tax Credit Program."
This new article provides the framework for public education entities,
local education funds, and educational scholarship organizations to
apply for authorization to issue certificates of receipt. Such
authorization must be renewed each year after review of the
applicant's prior year's activities and annual report. Additionally,
any authorization granted may be revoked in a subsequent year.

Additionally, this new article contains the same short title and
definitions, as well as the joint report requirement, provided in Tax
law section 39.

Section fifteen of this bill provides that nothing herein shall be
construed to authorize either the Commissioner of DTF or the
Commissioner of the Department of Education to place any additional
instructional or programming requirements upon public or non-public
schools.

Section sixteen of this bill contains the severability clause

Section seventeen of this bill provides that this act shall take
effect immediately and shall apply to taxable years beginning after
December 31, 2013.

EXISTING LAW: New law

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

LEGISLATIVE HISTORY: 2012: S.2732-C - Passed Senate 2011: S.2732 -
Passed Senate 2010: S.5146-A - Senate Finance Committee 2009: S.5416 -
Senate Finance Committee


FISCAL IMPLICATIONS: $250 million for calendar year 2014 and $300
million for each calendar year beginning in 2015 The bill has the
potential to generate $333 million in voluntary contributions to
support K-12 education in New York State. Stabilizing the independent
and religious sector will significantly lessen the need for local
school tax increases as well as for the issuance of bonds for new
public school construction, generating further savings for the state.

EFFECTIVE DATE: This act shall take effect immediately and shall
apply to taxable years beginning after December 31, 2013.

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

                                 4099--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 8, 2013
                               ___________

Introduced  by  Sens.  GOLDEN,  ADDABBO,  DILAN, MAZIARZ, SAVINO -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on  Investigations  and  Government Operations -- 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 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. 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, including  charter  schools,  to  accept  and
receive voluntary cash contributions 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  intended beneficiaries of the tax credit provided in this act
are the students who attend public schools, including  charter  schools,
students  who  further  their educations using tuition scholarships from

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00834-04-3

S. 4099--A                          2

educational scholarship organizations, and students who  participate  in
home-based educational programs;
  f.  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.    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 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 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, (III) 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 CONTRIB-
UTIONS OR INCOME ARE WITHDRAWN FOR USE, AND (V)  IS  APPROVED  TO  ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
LAW.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO 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

S. 4099--A                          3

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 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 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
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, AND A CHARTER
SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE EDUCATION LAW.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A TAXPAYER TO A PUBLIC EDUCATION ENTITY, 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  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  OF  THEIR
PARENTS'  CHOICE  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 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  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

S. 4099--A                          4

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  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 CLAIMED A DEDUCTION  PURSUANT  TO  SECTION  ONE  HUNDRED
SEVENTY  OF  THIS CHAPTER FOR SUCH QUALIFIED CONTRIBUTIONS, THE TAXPAYER
SHALL NOT BE ALLOWED TO CLAIM BOTH A CREDIT AND  A  DEDUCTION  FOR  SUCH
QUALIFIED  CONTRIBUTIONS.  THE COMMISSIONER SHALL MAINTAIN A LIST OF THE
PUBLIC EDUCATION ENTITIES, LOCAL EDUCATION FUNDS AND EDUCATIONAL  SCHOL-
ARSHIP  ORGANIZATIONS  THAT  ARE  AUTHORIZED  TO  ISSUE  CERTIFICATES 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, (II) THE TAXPAYER'S
TAX  LIABILITY  FOR THE IMMEDIATELY PRECEDING TAXABLE YEAR, OR (III) THE
CREDIT LIMITATION PRESCRIBED BY SUBDIVISION (I) OF THIS SECTION. WHEN  A
QUALIFIED  CONTRIBUTION IS MADE BY A PARTNERSHIP, ANY DIRECT OR INDIRECT
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 THAT ARE 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 ITEM-
IZED 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.

S. 4099--A                          5

  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 THAT ARE 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  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 TO A PUBLIC EDUCATION ENTITY, LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  THAT WAS MADE PRIOR TO THE DEPARTMENT'S ISSU-
ANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE FOR  SUCH  CONTRIBUTION
TO THE TAXPAYER. A TAXPAYER MAY BE ISSUED MULTIPLE CONTRIBUTION AUTHORI-
ZATION  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 THE LESSER OF SEVENTY-FIVE
PERCENT OF THE TAXPAYER'S LIABILITY FOR  THE  TAXABLE  YEAR  IMMEDIATELY
PRECEDING  THE YEAR FOR WHICH THE TAXPAYER IS MAKING THE APPLICATION FOR
A CREDIT AUTHORIZATION CERTIFICATE OR FIVE PERCENT OF THE CREDIT CAP SET

S. 4099--A                          6

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 APPLICATION.
  (G)  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 FOURTEENTH  DAY  OF  JANUARY,  THE  COMMISSIONER
SHALL  NOT  ISSUE  ANY  CREDIT  AUTHORIZATION  CERTIFICATES.  AFTER  THE
FIFTEENTH DAY OF JANUARY, THE COMMISSIONER SHALL ISSUE  CREDIT  AUTHORI-
ZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE, PROVIDED
THAT  IF  THE  AGGREGATE TOTAL OF THE AUTHORIZED CONTRIBUTIONS FOR WHICH
APPLICATIONS HAVE BEEN FILED DURING PHASE  ONE  EXCEEDS  THE  AMOUNT  OF
CREDIT  AVAILABLE,  THE  AUTHORIZED  CONTRIBUTION  AMOUNT LISTED IN EACH
CREDIT AUTHORIZATION CERTIFICATE SHALL EQUAL THE PRO-RATA SHARE  OF  THE
AVAILABLE  CREDIT.  IN  PHASE  TWO,  THE COMMISSIONER SHALL ISSUE CREDIT
AUTHORIZATION CERTIFICATES ON A FIRST-COME FIRST SERVE BASIS BASED  UPON
THE  DATE  THAT  THE  DEPARTMENT RECEIVED THE TAXPAYER'S APPLICATION FOR
SUCH CERTIFICATE; PROVIDED, HOWEVER, THAT IF ON ANY DAY  THE  DEPARTMENT
RECEIVES  APPLICATIONS  FOR  WHICH THE AGGREGATE TOTAL OF THE AUTHORIZED
CREDIT SOUGHT IN SUCH APPLICATIONS EXCEEDS THE AMOUNT OF  CREDIT  AVAIL-
ABLE  ON  SUCH  DAY,  THE  AUTHORIZED CONTRIBUTION AMOUNT LISTED IN EACH
CREDIT AUTHORIZATION CERTIFICATE SHALL BE THE TAXPAYER'S PRO-RATA  SHARE
OF  THE AVAILABLE CREDIT.  FOR PURPOSES OF DETERMINING A TAXPAYER'S PRO-
RATA SHARE OF AVAILABLE CREDIT,  THE  COMMISSIONER  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 CRED-
IT 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) SEVENTY-FIVE PERCENT OF SUCH TAXPAYER'S TAX LIABILITY  FOR
THE  IMMEDIATELY PRECEDING TAXABLE YEAR, (II) FIVE PERCENT OF THE CREDIT
CAP SET FORTH IN SUBDIVISION (J) OF THIS SECTION FOR THE CALENDAR  YEAR,
OR  (III) THE AGGREGATE OF THE AMOUNTS LISTED ON THE TAXPAYER'S APPLICA-
TIONS 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 TAXABLE 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 AUTHORIZATION
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

S. 4099--A                          7

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  REMAINING 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,
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 IF 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,

S. 4099--A                          8

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-
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  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 AUTHORI-
ZATION 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
TAXPAYER SHALL, FOR EACH TAXABLE YEAR FOR WHICH THE EDUCATION INVESTMENT

S. 4099--A                          9

TAX  CREDIT PROVIDED FOR UNDER THIS SECTION IS CLAIMED, MAINTAIN RECORDS
OF THE FOLLOWING INFORMATION:  (I)  CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATES  OBTAINED  PURSUANT  TO SUBDIVISION (G) OF THIS SECTION, AND (II)
CERTIFICATES  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 COMMIS-
SIONER 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 STATISTICAL INFORMATION, BY TAX TYPE, REGARDING THE
NUMBER OF APPLICATIONS RECEIVED, THE  NUMBER  OF  CONTRIBUTION  AUTHORI-
ZATION  CERTIFICATES  ISSUED FOR CONTRIBUTIONS TO PUBLIC EDUCATION ENTI-
TIES AND QUALIFIED LOCAL EDUCATION FUNDS,  THE  NUMBER  OF  CONTRIBUTION
AUTHORIZATION CERTIFICATES ISSUED FOR AUTHORIZED CONTRIBUTIONS TO QUALI-
FIED  SCHOLARSHIP  ORGANIZATIONS,  THE  AGGREGATE  AMOUNT  OF AUTHORIZED
CONTRIBUTIONS FOR PUBLIC EDUCATION ENTITIES AND QUALIFIED  LOCAL  EDUCA-
TION  FUNDS, THE AGGREGATE AMOUNT OF AUTHORIZED CONTRIBUTIONS FOR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATIONS, THE GEOGRAPHICAL DISTRIBUTION BY COUN-
TY OF THE APPLICATIONS FOR CONTRIBUTION AUTHORIZATION 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 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  COMMIS-
SIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE DEPARTMENT OF EDUCA-
TION,  SHALL  BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMA-
TION 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 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.

S. 4099--A                         10

  (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
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  two  new
subsections (w) and (w-1) to read as follows:
  (W)  HOME-BASED INSTRUCTIONAL MATERIALS CREDIT.  (1) FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN,  A  TAXPAYER
SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
THE PURCHASE OF INSTRUCTIONAL MATERIALS APPROVED BY  THE  DEPARTMENT  OF
EDUCATION  OR  BOARD  OF REGENTS FOR USE IN NON-PUBLIC HOME-BASED EDUCA-
TIONAL PROGRAMS; PROVIDED, THAT THE AMOUNT OF CREDIT  CLAIMED  DOES  NOT
EXCEED  THE  LESSER OF ONE HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF THE
COST OF SUCH PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3)  IF THE ALLOWABLE TAX CREDIT EXCEEDS THE TAXES OTHERWISE DUE UNDER
THIS ARTICLE ON THE TAXPAYER'S INCOME, OR IF  THERE  ARE  NO  TAXES  DUE
UNDER  THIS ARTICLE, THE TAXPAYER MAY CARRY THE AMOUNT OF THE CREDIT NOT
USED TO OFFSET THE TAXES UNDER THIS ARTICLE FORWARD FOR  NOT  MORE  THAN
FIVE YEARS' INCOME TAX LIABILITY.
  (W-1)  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

S. 4099--A                         11

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:
  (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

S. 4099--A                         12

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-
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
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 REVENUE FROM QUALIFIED CONTRIB-
UTIONS  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 SCHO-
LARSHIPS,  (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-

S. 4099--A                         13

FIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE,  AND  (IV)  PROVIDES
SCHOLARSHIPS  WITHOUT  LIMITING  AVAILABILITY TO ONLY ELIGIBLE PUPILS OF
ONE QUALIFIED SCHOOL.
  (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
THIRTY-TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR
BEFORE  DECEMBER  FIRST  OF  THE  YEAR  IN  WHICH THEY ARE ENROLLED IN A
PRE-KINDERGARTEN PROGRAM, 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 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,
AND  (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.
  (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 ISSUE CERTIF-
ICATES 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 OR
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
EDUCATIONAL SCHOLARSHIP ORGANIZATION LISTED IN THE CONTRIBUTION AUTHORI-
ZATION CERTIFICATE ISSUED TO THE TAXPAYER FOR  WHICH  THE  TAXPAYER  HAS
RECEIVED  A  CERTIFICATE OF RECEIPT FROM SUCH ENTITY, FUND, OR ORGANIZA-
TION.
  (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  OF  THEIR
PARENTS'  CHOICE  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

S. 4099--A                         14

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,  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, AND (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.  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
PUBLIC SCHOOL DISTRICT PURSUANT TO SECTION  TWELVE  HUNDRED  SIXTEEN  OF
THIS ARTICLE.
  (2)  SCHOOL  IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGAN-
IZATIONS 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

S. 4099--A                         15

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
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)  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 ESTABLISHED TO SUPPORT, AND  (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 WITHDRAWN FOR USE.
  S  1213.  APPLICATION  APPROVAL. 1. IN GENERAL.   THE BOARD OF REGENTS
SHALL REVIEW EACH APPLICATION TO DETERMINE WHETHER THE  APPLICANT  WOULD
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

S. 4099--A                         16

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  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. EACH SCHOOL
IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZATION OR  LOCAL
EDUCATION  FUND  THAT RECEIVED APPROVAL TO ISSUE CERTIFICATES OF RECEIPT
SHALL FILE AN APPLICATION FOR RECERTIFICATION 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 ORGANIZATION  OR  ENTITY  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, (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  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  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.   FOR PURPOSES OF DETERMINING A TAXPAYER'S PRO-RATA SHARE OF
AVAILABLE CREDIT, THE COMMISSIONER SHALL MULTIPLY THE AMOUNT  OF  AVAIL-
ABLE  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. PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS. EACH PUBLIC  SCHOOL  OR
PUBLIC SCHOOL DISTRICT SHALL FILE AN ANNUAL CERTIFICATION WITH THE BOARD
OF  REGENTS  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.
  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

S. 4099--A                         17

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
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  INFORMATION
REQUESTED BY THE COMMISSIONER OR BOARD OF REGENTS.
  (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 ANY ADDITIONAL 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

S. 4099--A                         18

CALENDAR YEAR, AND (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 ANY  ADDITIONAL  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  INFORMATION  REQUESTED  BY  THE
COMMISSIONER OR BOARD OF REGENTS.
  (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
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. 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 16. 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 17. This act shall take effect immediately and shall apply to  taxa-
ble years beginning after December 31, 2013.

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