NY State Senate Bill S1976A

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Introduced
In Committee
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- Passed Assembly
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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 11, 2016	referred to ways and means delivered to assembly passed senate ordered to third reading cal.5
Jan 08, 2016	print number 1976a
Jan 08, 2016	amend and recommit to rules
Jan 06, 2016	referred to rules returned to senate died in assembly
Jan 21, 2015	referred to ways and means delivered to assembly passed senate ordered to third reading cal.17
Jan 16, 2015	referred to rules

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Bill Amendments

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S1976 - Details

Law Section:: Tax Law
Laws Affected:: Add §42, amd §§208, 210-B, 606 & 615, Tax L; add Art 25 §§1209 - 1217, §1503-a, Ed L
Versions Introduced in 2017-2018 Legislative Session:: S4366

S1976 - Summary

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

S1976 - Sponsor Memo

BILL NUMBER:S1976

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

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

SUMMARY OF PROVISIONS:

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

Section two of the bill adds new section 42 to the Tax Law, which is
the education investment tax credit. New section 42 includes
cross-references to the definitions of terms such as "authorized
contribution," "public education entity," "local education fund," and
"educational scholarship organization." These terms are defined in new
Article 25 of the Education Law, which is section 9 of this bill.

The education investment tax credit is available to individuals and
Article 9-A taxpayers that make qualified contributions to public

education entities, school improvement organizations, local education
funds, and/or educational scholarship organizations. To be eligible to
claim the tax credit provided by new section 42, a taxpayer must,
prior to making a contribution for which the taxpayer will seek a
credit, apply to the Department of Taxation and Finance ("DTF") for a
contribution authorization certificate. If there is credit available,
DTF will issue a contribution authorization certificate to the
taxpayer and provide notice of the issuance of the certificate to the
entity, public school, or public school district named in the
certificate. The contribution authorization certificate will list the
amount of the authorized contribution and the entity, public school or
public school district for which the contribution is authorized.
Taxpayers have until the date listed on their contribution
authorization certificate, which cannot be later than December 31 of
the calendar year, to make the contribution to the named entity,
public school, or public school district. Upon receipt of a timely
authorized contribution, the recipient will issue a certificate of
receipt to the taxpayer. If a contribution is not timely received, the
recipient named in the contribution authorization certificate will
notify DTF. The amount of such authorized contribution will be added
to the maximum amount of credit available (credit cap) in the
immediately following calendar year.

The maximum amount of credit that a taxpayer may claim for any year is
90% of the taxpayer's qualified contributions, capped at $1 million
plus any amount carried over from a prior year. Any amount of
qualified contributions made in excess of these limits may be carried
forward for 5 years.

Taxpayers may not use a qualified contribution as both a charitable
contribution deduction to decrease their New York State income tax


liability and a credit against their New York State income tax.
Corporations must add the contribution amount claimed as a charitable
contribution at the Federal level back to entire net income.
Individuals who itemize their deductions on their Federal return must
add the contribution amount claimed as a charitable contribution at
the Federal level back to income on the New York State return.

The credit is capped at $150 million for calendar year 2016 and $225
million in 2017 plus any amounts required to be added to the cap due
to authorized contributions that were not timely made in the
immediately preceding calendar year. Beginning in calendar year 2018,
the credit is capped at $300 million plus any amounts required to be
added to the cap due to authorized contributions that were not timely
made in the immediately preceding calendar year. One half of the
annual cap will be available for qualified contributions made to
public education entities, school improvement organizations, and local
education funds and one half of the annual cap will be available to
educational scholarship organizations to provide scholarships to
public or non-public schools.

Section two also requires a joint report from the Commissioner and the
Commissioner of the Department of Education. The joint report shall
include, among other things, statistics regarding the number of
qualified contributions made to each type of recipient and the
distribution of the recipients by county.

Section three of the bill amends Tax Law section 208(9)(b) by adding a
new subparagraph (22) to provide that if a taxpayer claims a
charitable contribution deduction at the Federal level for any amount
that the taxpayer claimed as a credit pursuant to Tax Law section
210-B(49), such amount must be added back to the taxpayer's entire net
income computation.

Section four of the bill amends Tax Law section 210-B to add a new
subdivision (49) to provide the mechanism for Article 9-A taxpayers to
claim the education investment tax credit. Any unused credit can be
carried forward for 5 years.

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

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


Section seven of the bill amends Tax Law section 606 by adding a new
subsection (ccc) to provide the mechanism for Article 22 taxpayers to
claim the education investment incentives credit. Any unused credit
can be carried forward for 5 years.

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

Section nine of the bill amends the Education Law to add a new Article
25, entitled the "Education Investment Tax Credit Program." This new
article provides the framework for public education entities, school
improvement organizations, local education funds, and educational
scholarship organizations to apply for authorization to issue
certificates of receipt. This new Article also provides that any
authorization granted may be revoked in a subsequent year.
Additionally, this new Article contains the same definitions and same
joint report requirement that are provided in new Tax Law section 42.

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

Section eleven of this bill contains the severability clause.

Section twelve of this bill provides that this act shall take effect
immediately and shall apply to taxable years beginning after December
31, 2015.

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. Additionally, permitting school
personnel to claim a credit for the purchase of classroom
instructional materials and supplies will ensure a wider availability
of such materials and supplies for all students.

LEGISLATIVE HISTORY:  2014: S.6808 - Referred to Investigations and
Government Operations


Similar to:  2013-4: S.4099-A - Referred to Investigations and
Government Operations 2011-2: S.3072 - Passed the Senate both years

FISCAL IMPLICATIONS:  $150 million for calendar year 2016, $225
million in calendar year 2017, and $300 million for each calendar year
thereafter beginning in 2018.

EFFECTIVE DATE:  This act shall take effect immediately and shall
apply to taxable years beginning after December 31, 2015.

S1976 - Bill Text download pdf

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

                                  1976

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 16, 2015
                               ___________

Introduced  by  Sens.  GOLDEN,  FELDER, ADDABBO, AVELLA, BONACIC, BOYLE,
  CROCI,  DIAZ,  FLANAGAN,  FUNKE,  GALLIVAN,  HASSELL-THOMPSON,  LANZA,
  LARKIN,  LATIMER, MARCHIONE, MARTINS, SAVINO -- read twice and ordered
  printed, and when printed to be committed to the Committee on Rules

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

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "education investment incentives act".
  S 2.  The tax law is amended by adding a new section  42  to  read  as
follows:
  S  42.  EDUCATION  INVESTMENT  TAX  CREDIT.   (A) DEFINITIONS. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME  DEFI-
NITION AS PROVIDED FOR IN ARTICLE TWENTY-FIVE OF THE EDUCATION LAW:
  "AUTHORIZED CONTRIBUTION";
  "CONTRIBUTION";
  "EDUCATIONAL PROGRAM";
  "EDUCATIONAL SCHOLARSHIP ORGANIZATION";
  "ELIGIBLE PUPIL";
  "LOCAL EDUCATION FUND";
  "NONPUBLIC SCHOOL";
  "PUBLIC EDUCATION ENTITY";
  "PUBLIC SCHOOL";
  "QUALIFIED CONTRIBUTION";
  "QUALIFIED EDUCATOR";
  "QUALIFIED SCHOOL";
  "SCHOLARSHIP"; AND
  "SCHOOL IMPROVEMENT ORGANIZATION".
  (B)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE
NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL  BE  ALLOWED  CREDIT  AGAINST

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07927-02-5

S. 1976                             2

SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF
THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS  MADE  DURING  THE
TAXABLE YEAR.
  (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT
OF  THE  TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS, CAPPED AT ONE MILLION
DOLLARS.  A TAXPAYER THAT IS A PARTNER IN A  PARTNERSHIP,  MEMBER  OF  A
LIMITED  LIABILITY  COMPANY  OR SHAREHOLDER IN AN S CORPORATION SHALL BE
ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER-
SHIP, LIMITED LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT  SUCH  A
TAXPAYER  SHALL  NOT  CLAIM CREDIT IN EXCESS OF THE LIMIT IMPOSED BY THE
PRECEDING SENTENCE.
  (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE.  THE COMMIS-
SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE
AMOUNT OF AVAILABLE CREDIT FOR WHICH TAXPAYERS  MAY  APPLY  PURSUANT  TO
THIS  SECTION.    SUCH  RUNNING TOTAL SHALL BE UPDATED ON A DAILY BASIS.
ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S
WEBSITE  A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
LAW.
  (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING  A  CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION, THE TAXPAYER SHALL APPLY TO  THE  DEPARTMENT  FOR  A  CONTRIBUTION
AUTHORIZATION  CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL
BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE  DEPARTMENT
MAY  ALLOW  TAXPAYERS  TO  MAKE  MULTIPLE APPLICATIONS ON THE SAME FORM,
PROVIDED THAT EACH CONTRIBUTION LISTED  ON  SUCH  APPLICATION  SHALL  BE
TREATED  AS  A  SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE
SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH  APPLICA-
TION.
  (F)  CONTRIBUTION  AUTHORIZATION  CERTIFICATES. 1. ISSUANCE OF CERTIF-
ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON  THE  FIRST  DAY  OF
JANUARY  AND  ENDS  ON THE THIRTY-FIRST DAY OF JANUARY, THE COMMISSIONER
SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION  AUTHORIZATION  CERTIFICATES.
COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE
CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR
WHICH  APPLICATIONS  HAVE  BEEN  RECEIVED  DURING  PHASE ONE EXCEEDS THE
AMOUNT OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, THE AUTHOR-
IZED CONTRIBUTION  AMOUNT  LISTED  ON  EACH  CONTRIBUTION  AUTHORIZATION
CERTIFICATE  SHALL  EQUAL  THE  PRO-RATA SHARE OF THE CREDIT CAP. IF THE
CREDIT CAP IS NOT EXCEEDED, PHASE TWO COMMENCES ON  FEBRUARY  FIRST  AND
ENDS  ON  DECEMBER THIRTY-FIRST. DURING PHASE TWO THE COMMISSIONER SHALL
ISSUE CONTRIBUTION AUTHORIZATION  CERTIFICATES  ON  A  FIRST-COME  FIRST
SERVE  BASIS  BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S
APPLICATION FOR SUCH CERTIFICATE.   CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATES  FOR  APPLICATIONS  RECEIVED  DURING PHASE ONE SHALL BE MAILED NO
LATER THAN THE TWENTIETH DAY  OF  FEBRUARY.  CONTRIBUTION  AUTHORIZATION
CERTIFICATES  FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE MAILED
WITHIN FIVE DAYS OF RECEIPT OF SUCH APPLICATIONS.
  2. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH  CONTRIBUTION
AUTHORIZATION  CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE WAS
ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
CERTIFICATE MUST BE MADE, WHICH SHALL BE NO LATER THAN DECEMBER  THIRTY-

S. 1976                             3

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

S. 1976                             4

TION  FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT  WITH
NOTIFICATION  OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER
PRESCRIBED BY THE DEPARTMENT.
  5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF  RECEIPT.  EACH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
THIS SECTION REGARDING THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE  TO  A  TAXPAYER SHALL, WITHIN THIRTY DAYS OF THE EXPIRATION
DATE FOR SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION  TO  THE
DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
UTION  TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,
LOCAL EDUCATION FUND, OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  IN  THE
FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
  6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
ERY  OF  THE  FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
PROGRAM, LOCAL EDUCATION FUND, OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION
TO  COMPLY  WITH  THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS
FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
OF COMPLIANCE FAILURE TO SUCH ENTITY, PROGRAM,  FUND,  OR  ORGANIZATION.
SUCH  ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS FROM
THE DATE OF SUCH NOTICE TO MAKE THE NOTIFICATIONS  PRESCRIBED  BY  PARA-
GRAPHS  FOUR  AND  FIVE OF THIS SUBDIVISION. SUCH PERIOD MAY BE EXTENDED
FOR AN ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE  ENTITY,  PROGRAM,
FUND,  OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE SET
FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL
NOTIFY THE BOARD OF REGENTS AND THE COMMISSIONER OF EDUCATION THAT  SUCH
ENTITY,  PROGRAM, FUND, OR ORGANIZATION FAILED TO MAKE THE NOTIFICATIONS
PRESCRIBED BY PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
  (H) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
TWO  THOUSAND  SIXTEEN  SHALL  BE  ONE HUNDRED FIFTY MILLION DOLLARS. IN
CALENDAR YEAR TWO THOUSAND  SEVENTEEN,  THE  MAXIMUM  PERMITTED  CREDITS
UNDER THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWEN-
TY-FIVE  MILLION  DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED
TO THE CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION.    FOR  CALENDAR
YEAR  TWO THOUSAND EIGHTEEN AND EACH CALENDAR YEAR THEREAFTER, THE MAXI-
MUM PERMITTED CREDITS AVAILABLE TO ALL TAXPAYERS SHALL BE THREE  HUNDRED
MILLION  DOLLARS  PLUS  ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE
CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  THE MAXIMUM  PERMITTED
CREDITS  UNDER  THIS  SECTION FOR QUALIFIED CONTRIBUTIONS SHALL BE ALLO-
CATED FIFTY PERCENT TO PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT
ORGANIZATIONS,  AND  LOCAL  EDUCATION  FUNDS AND FIFTY PERCENT TO EDUCA-
TIONAL SCHOLARSHIP ORGANIZATIONS.
  (I) ADDITIONS TO CREDIT CAP. UNISSUED CERTIFICATES OF  RECEIPT.    ANY
AMOUNTS  FOR  WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE
OF A CERTIFICATE OF RECEIPT SHALL BE ADDED  TO  THE  CAP  PRESCRIBED  IN
SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
  (J)  REGULATIONS.  THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE  IMPLEMEN-
TATION OF THIS SECTION.
  ON  OR  BEFORE  THE  LAST  DAY OF JUNE 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

S. 1976                             5

CHAIRMAN  OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEM-
BLY WAYS AND MEANS COMMITTEE  REGARDING  THE  EDUCATION  INVESTMENT  TAX
CREDIT.  SUCH  REPORT  SHALL CONTAIN INFORMATION FOR ARTICLES NINE-A AND
TWENTY-TWO,  RESPECTIVELY,  REGARDING:  (I)  THE  NUMBER OF APPLICATIONS
RECEIVED; (II) THE NUMBER OF AND AGGREGATE  VALUE  OF  THE  CONTRIBUTION
AUTHORIZATION  CERTIFICATES ISSUED FOR CONTRIBUTIONS TO PUBLIC EDUCATION
ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION  FUNDS,  AND
SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE GEOGRAPHICAL DISTRIB-
UTION  BY  COUNTY OF (A) THE APPLICATIONS FOR CONTRIBUTION AUTHORIZATION
CERTIFICATES, DISTRIBUTION BY COUNTY OF (B) THE PUBLIC  EDUCATION  ENTI-
TIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION  FUNDS, AND
EDUCATIONAL SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED  CONTRIBUTION
AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING GEOGRAPHICAL
DISTRIBUTION  BY  COUNTY, OF THE NUMBER OF ELIGIBLE PUPILS THAT RECEIVED
SCHOLARSHIPS, THE NUMBER  OF  QUALIFIED  SCHOOLS  ATTENDED  BY  ELIGIBLE
PUPILS  THAT RECEIVED SUCH SCHOLARSHIPS, AND THE AVERAGE VALUE OF SCHOL-
ARSHIPS RECEIVED BY SUCH ELIGIBLE PUPILS. THE  COMMISSIONER  AND  DESIG-
NATED EMPLOYEES OF THE DEPARTMENT, THE BOARD OF REGENTS, THE COMMISSION-
ER  OF  EDUCATION  AND  DESIGNATED  EMPLOYEES  OF  THE  STATE  EDUCATION
DEPARTMENT, SHALL BE ALLOWED AND ARE  DIRECTED  TO  SHARE  AND  EXCHANGE
INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA-
TION  FUNDS  AND  EDUCATIONAL SCHOLARSHIP ORGANIZATIONS THAT APPLIED FOR
APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED  CONTRIBUTIONS;  AND  THE
PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO
ISSUE CERTIFICATES OF RECEIPT, INCLUDING  INFORMATION  CONTAINED  IN  OR
DERIVED  FROM  APPLICATION  FORMS AND REPORTS SUBMITTED TO THE EDUCATION
DEPARTMENT OR BOARD OF REGENTS.
  (L) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 49;
  2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).
  S  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 22 to read as follows:
  (22) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
HUNDRED  SEVENTY  OF  THE  INTERNAL  REVENUE  CODE FOR WHICH A CREDIT IS
CLAIMED PURSUANT TO SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED  TEN-B
OF THIS ARTICLE.
  S  4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. EDUCATION INVESTMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C)  OR  (D)  OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF
THE  AMOUNT  OF  CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION FOR QUALIFIED
CONTRIBUTIONS FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH  AMOUNT,  ANY
AMOUNT OF CREDIT 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  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
follows:

S. 1976                             6

(XLI) EDUCATION INVESTMENT           AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (CCC)    FORTY-NINE OF SECTION TWO HUNDRED
                                     TEN-B
  S  6.  Section  606  of  the  tax  law  is  amended  by adding two new
subsections (w) and (w-1) to read as follows:
  (W) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. (1) FOR  TAXABLE  YEARS
BEGINNING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, A TAXPAYER
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR
THE  PURCHASE  OF  INSTRUCTIONAL  MATERIALS  APPROVED  BY  THE EDUCATION
DEPARTMENT 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 TWO HUNDRED DOLLARS OR ONE HUNDRED PERCENT  OF  THE
COST OF SUCH PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH  THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  (W-1)  INSTRUCTIONAL  MATERIALS  AND SUPPLIES CREDIT.  (1) FOR TAXABLE
YEARS BEGINNING ON AND AFTER JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,  A
TAXPAYER  SHALL  BE  ALLOWED  A CREDIT EQUAL TO THE LESSER OF THE AMOUNT
PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
AND SUPPLIES, OR TWO HUNDRED DOLLARS; PROVIDED THAT THE  TAXPAYER  IS  A
TEACHER  OR  INSTRUCTOR  IN  A  QUALIFIED  SCHOOL, AS DEFINED IN SECTION
FORTY-TWO OF THIS CHAPTER, FOR AT LEAST  NINE  HUNDRED  HOURS  DURING  A
SCHOOL  YEAR.  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND
SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE
CLASSROOM IN ANY QUALIFIED SCHOOL.
  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 7. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  EDUCATION  INVESTMENT  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS  SUBSECTION  FOR  ANY  QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR
EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S 8. Subdivision (c) of section 615 of  the  tax  law  is  amended  by
adding a new paragraph 9 to read as follows:
  (9)  THE  AMOUNT  OF  ANY FEDERAL DEDUCTION FOR CONTRIBUTIONS MADE FOR
WHICH A TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF  SECTION  SIX
HUNDRED SIX OF THIS ARTICLE.
  S  9.  The education law is amended by adding a new article 25 to read
as follows:

S. 1976                             7

                               ARTICLE 25
                 EDUCATION INVESTMENT TAX CREDIT PROGRAM
SECTION 1209. SHORT TITLE.
        1210. DEFINITIONS.
        1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1212. APPLICATIONS   FOR   APPROVAL  TO  ISSUE  CERTIFICATES  OF
                RECEIPT.
        1213. APPLICATION APPROVAL.
        1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1215. RECORDKEEPING.
        1216. JOINT ANNUAL REPORT.
        1217. COMMISSIONER; POWERS.
  S 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "EDUCATION INVESTMENT TAX CREDIT PROGRAM".
  S  1210.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "AUTHORIZED CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT LISTED  ON
THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
  (2)  "CONTRIBUTION"  MEANS  A DONATION PAID BY CASH, CHECK, ELECTRONIC
FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD MADE BY  THE  TAXPAYER  DURING
THE TAX YEAR.
  (3) "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC SCHOOL
THAT  ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A PRE-KINDERGARTEN
PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF
THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS  OR  OTHER  ACTIV-
ITIES  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 FAMILY AND CONSUMER SCIENCES;
LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH-
NOLOGY AND SCIENTIFIC ACHIEVEMENT; (B)  INSTRUCTION  OR  PROGRAMMING  TO
MEET  THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILI-
TIES, INCLUDING TUTORING  OR  COUNSELING;  OR  (C)  USE  OF  SPECIALIZED
INSTRUCTIONAL  MATERIALS,  INSTRUCTORS  OR INSTRUCTION NOT PROVIDED BY A
PUBLIC SCHOOL.
  (4) "EDUCATIONAL  SCHOLARSHIP  ORGANIZATION"  MEANS  A  NOT-FOR-PROFIT
ENTITY  WHICH  (A)  IS  EXEMPT  FROM  TAXATION  UNDER PARAGRAPH THREE OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE,
(B) COMMITS FOR THE EXPENDITURE OF AT LEAST NINETY PERCENT OF THE REVEN-
UE FROM QUALIFIED CONTRIBUTIONS RECEIVED DURING THE  CALENDAR  YEAR  AND
ANY  INCOME  DERIVED  FROM QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (C)
DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME  DERIVED  FROM
QUALIFIED  CONTRIBUTIONS  IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGAN-
IZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR
INCOME ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO  ELIGIBLE
PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS.
  (5)  "ELIGIBLE  PUPIL"  MEANS  A  CHILD  WHO (A) IS A RESIDENT OF THIS
STATE, (B) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE  OF  SECTION
THIRTY-TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR
BEFORE  DECEMBER  FIRST  OF  THE  YEAR  IN  WHICH THEY ARE ENROLLED IN A
PRE-KINDERGARTEN PROGRAM, (C) ATTENDS OR IS ABOUT TO ATTEND A  QUALIFIED
SCHOOL, AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS
INCOME  OF  FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR
HOUSEHOLDS WITH THREE OR MORE  DEPENDENT  CHILDREN,  SUCH  INCOME  LEVEL
SHALL BE INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS
OF TWO, NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.

S. 1976                             8

  (6)  "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A) IS
EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF  SECTION
FIVE  HUNDRED  ONE  OF THE INTERNAL REVENUE CODE, (B) IS ESTABLISHED FOR
THE PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE  PUBLIC
SCHOOL,  OR  PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY PERCENT OF
THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR  YEAR  AND  ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL
OR  SCHOOLS  OR  PUBLIC  SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS
BEEN ESTABLISHED TO  SUPPORT,  AND  (D)  DEPOSITS  AND  HOLDS  QUALIFIED
CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT THAT IS 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
LOCATED  IN  THIS  STATE,  OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING
INSTRUCTION AT ONE OR MORE LOCATIONS TO A  STUDENT  IN  ACCORDANCE  WITH
SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
  (8) "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC SCHOOL
DISTRICT,  PROVIDED  THAT  SUCH PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT
DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME  DERIVED  FROM
QUALIFIED  CONTRIBUTIONS  IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS  UNTIL  SUCH
QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED
TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  (9)  "PUBLIC  SCHOOL" MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION  OR  CHARTER
SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER.
  (10)  "QUALIFIED  CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE
BY A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGAN-
IZATION,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
THAT IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE  ISSUED  TO
THE  TAXPAYER  AND  FOR WHICH THE TAXPAYER HAS RECEIVED A CERTIFICATE OF
RECEIPT FROM SUCH ENTITY, FUND, OR ORGANIZATION.
  (11) "QUALIFIED EDUCATOR" MEANS AN INDIVIDUAL  WHO  IS  A  TEACHER  OR
INSTRUCTOR  IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING
A SCHOOL YEAR.
  (12) "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.
  (13) "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP WHICH  PROVIDES  A
TUITION  GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL
IN AN AMOUNT NOT TO EXCEED THE TUITION CHARGED  TO  ATTEND  SUCH  SCHOOL
LESS  ANY  OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL
OR HIS OR HER PARENT, PARENTS OR  GUARDIAN  FOR  SUCH  ELIGIBLE  PUPIL'S
TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A
PUBLIC  SCHOOL  IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS NOT A
RESIDENT, THE AMOUNT OF THE  EDUCATIONAL  SCHOLARSHIP  AWARDED  MAY  NOT
EXCEED  THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D
OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO  OF  THIS  CHAPTER
LESS  ANY  OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL
OR HIS OR HER PARENT, PARENTS OR  GUARDIAN  FOR  SUCH  ELIGIBLE  PUPIL'S
TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A
RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
  (14)  "SCHOOL  IMPROVEMENT ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY
WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH  THREE  OF  SUBSECTION
(C)  OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS  RECEIVED  DURING
THE  CALENDAR  YEAR  AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIB-

S. 1976                             9

UTIONS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL  DISTRICTS  LOCATED  IN
THIS  STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY MAKING
CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR PUBLIC  SCHOOL  DISTRICTS
LOCATED  IN  THIS  STATE  OR  PROVIDING  EDUCATIONAL  PROGRAMS TO, OR IN
CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL  DISTRICTS
LOCATED  IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS
AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN  AN  ACCOUNT
THAT  IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL
SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE,  AND  (IV)
IS  APPROVED  TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
SUCH ENTITY MAY ALLOW THE TAXPAYER TO CHOOSE TO  DONATE  TO  A  PROGRAM,
PROJECT  OR  INITIATIVE  IDENTIFIED BY A QUALIFIED EDUCATOR FOR USE IN A
PUBLIC SCHOOL.
  S 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1.  PUBLIC  SCHOOLS
AND  PUBLIC  SCHOOL  DISTRICTS.  ALL  PUBLIC  SCHOOLS  AND PUBLIC SCHOOL
DISTRICTS SHALL BE APPROVED TO ISSUE CERTIFICATES OF  RECEIPT  PROVIDED,
THAT  A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED IF
EITHER (A) THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO  DEPOSIT
AND  HOLD  QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED
CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL  OR  SCHOOL
DISTRICT'S  OPERATING  OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS
OR INCOME ARE WITHDRAWN FOR USE, OR (B) THE BOARD OF REGENTS HAS REVOKED
SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT  PURSUANT
TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE.
  2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS  AND  LOCAL  EDUCATION  FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN  APPLICATION  PURSUANT  TO
SECTION  TWELVE  HUNDRED  TWELVE  OF THIS ARTICLE AND RECEIVING APPROVAL
PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
  S 1212. APPLICATIONS FOR APPROVAL TO ISSUE  CERTIFICATES  OF  RECEIPT.
EACH  SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION, AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE  BOARD
OF REGENTS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND
MANNER  PRESCRIBED  BY  THE  BOARD; PROVIDED THAT SUCH APPLICATION SHALL
INCLUDE: (1) SUBMISSION OF DOCUMENTATION THAT  SUCH  SCHOOL  IMPROVEMENT
ORGANIZATION,  LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARAGRAPH  THREE  OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE;
(2)  THE MOST RECENT ANNUAL FINANCIAL AUDIT, WHICH SHALL BE COMPLETED BY
AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT  AND  A  LIST  OF  NAMES  AND
ADDRESSES  OF  ALL MEMBERS OF THE GOVERNING BOARD OF THE SCHOOL IMPROVE-
MENT ORGANIZATION,  LOCAL  EDUCATION  FUND  OR  EDUCATIONAL  SCHOLARSHIP
ORGANIZATION;  AND  (3)  AN  EDUCATIONAL  SCHOLARSHIP ORGANIZATION SHALL
PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE  STUDENTS.
THE  BOARD  OF REGENTS, COMMISSIONER OR DEPARTMENT SHALL NOT REQUIRE ANY
OTHER INFORMATION FOR SUCH APPLICATION  EXCEPT  AS  AUTHORIZED  IN  THIS
ARTICLE OR BY SECTION FORTY-ONE OF THE TAX LAW.
  S  1213.  APPLICATION APPROVAL. THE BOARD OF REGENTS SHALL REVIEW EACH
APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO  THIS  ARTICLE.
APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE AT THE NEXT SCHEDULED
MEETING  OF THE BOARD OF REGENTS THAT FOLLOWS THE RECEIPT OF SUCH APPLI-
CATION, BUT NOT LATER THAN THE NEXT MEETING THEREAFTER.
  S 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF  RECEIPT.  THE
BOARD  OF REGENTS, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND
FINANCE, MAY REVOKE THE APPROVAL OF A SCHOOL  IMPROVEMENT  ORGANIZATION,

S. 1976                            10

EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING THAT SUCH ORGANIZATION, FUND,  SCHOOL  OR  SCHOOL  DISTRICT  HAS
VIOLATED  THIS  ARTICLE  OR  SECTION  FORTY-TWO  OF  THE  TAX LAW. THESE
VIOLATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY OF  THE  FOLLOWING:
(1)  FAILURE  TO  MEET  THE  REQUIREMENTS  OF  THIS  ARTICLE  OR SECTION
FORTY-TWO OF THE TAX LAW, (2) THE FAILURE TO MAINTAIN FULL AND  ADEQUATE
RECORDS  WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS, (3) THE
FAILURE TO SUPPLY SUCH RECORDS TO THE COMMISSIONER, DEPARTMENT OF  TAXA-
TION AND FINANCE OR BOARD OF REGENTS WHEN REQUESTED BY THE DEPARTMENT OR
BOARD,  OR  (4) THE FAILURE TO PROVIDE NOTICE TO THE DEPARTMENT OF TAXA-
TION AND FINANCE OF THE  ISSUANCE  OR  NONISSUANCE  OF  CERTIFICATES  OF
RECEIPT  PURSUANT TO SECTION FORTY-TWO OF THE TAX LAW; PROVIDED HOWEVER,
THAT THE BOARD OF REGENTS SHALL NOT REVOKE  APPROVAL  PURSUANT  TO  THIS
SECTION BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE COMMISSIONER OF
TAXATION  AND  FINANCE AGREES THAT REVOCATION IS WARRANTED; AND PROVIDED
FURTHER THAT THE BOARD  SHALL  NOT  REVOKE  APPROVAL  PURSUANT  TO  THIS
SECTION  WHEN  THE  FAILURE  TO  COMPLY IS DUE TO CLERICAL ERROR AND NOT
NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE LAW. WITHIN FIVE DAYS OF THE
DETERMINATION REVOKING APPROVAL, THE BOARD SHALL PROVIDE NOTICE OF  SUCH
REVOCATION  TO THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVE-
MENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL
DISTRICT AND TO THE DEPARTMENT OF TAXATION AND FINANCE.
  S 1215. RECORDKEEPING. EACH SCHOOL  IMPROVEMENT  ORGANIZATION,  EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND
PUBLIC  SCHOOL  DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT
SHALL MAINTAIN RECORDS INCLUDING (A)  NOTIFICATIONS  RECEIVED  FROM  THE
DEPARTMENT  OF  TAXATION  AND  FINANCE,  (B)  NOTIFICATIONS  MADE TO THE
DEPARTMENT OF TAXATION AND FINANCE, (C)  COPIES  OF  QUALIFIED  CONTRIB-
UTIONS  RECEIVED,  (D)  COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIB-
UTIONS, (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL  FINAN-
CIAL  STATEMENTS,  (G)  IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS,
EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND  LOCAL  EDUCATION  FUNDS,  THE
APPLICATION  SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS
ARTICLE AND THE APPROVAL ISSUED BY THE BOARD OF  REGENTS,  AND  (H)  ANY
OTHER INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMIS-
SIONER OR RULE PROMULGATED BY THE BOARD OF REGENTS.
  S  1216.  JOINT  ANNUAL  REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION  AND  FINANCE  AND  THE
COMMISSIONER,  JOINTLY,  SHALL  SUBMIT  A  WRITTEN REPORT AS PROVIDED IN
SUBDIVISION (K) OF SECTION FORTY-TWO OF THE TAX LAW.
  S 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
SECTION. THE COMMISSIONER SHALL MAKE  ANY  APPLICATION  REQUIRED  TO  BE
FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS
OF THE EFFECTIVE DATE OF THIS ARTICLE.
  S  10.  The education law is amended by adding a new section 1503-a to
read as follows:
  S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
OF  A  GENERAL  LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL OR SPECIAL LAW TO THE  CONTRARY,  THE  RECEIPT  OF  SUCH  GIFTS,
DONATIONS,  CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-

S. 1976                            11

FROM, SHALL BE DISREGARDED  FOR  THE  PURPOSES  OF  ALL  APPORTIONMENTS,
COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
  S  11.  Severability. If any provision of this section or the applica-
tion thereof to any person or circumstances is held invalid, such  inva-
lidity  shall not affect other provisions or applications of the section
which can be given effect without the invalid provision or  application,
and to this end the provisions of this section are declared to be sever-
able.
  S  12. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2015.

Co-Sponsors

view additional co-sponsors

S1976A (ACTIVE) - Details

Law Section:: Tax Law
Laws Affected:: Add §42, amd §§208, 210-B, 606 & 615, Tax L; add Art 25 §§1209 - 1217, §1503-a, Ed L
Versions Introduced in 2017-2018 Legislative Session:: S4366

S1976A (ACTIVE) - Summary

S1976A (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S1976A

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

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

 SUMMARY OF PROVISIONS :

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

Section two of the bill adds new section 42 to the Tax Law, which is
the education investment tax credit. New section 42 includes
cross-references to the definitions of terms such as "authorized
contribution," "public education entity," "local education fund," and
"educational scholarship organization." These terms are defined in new
Article 25 of the Education Law, which is section 9 of this bill.

The education investment tax credit is available to individuals and
Article 9-A taxpayers that make qualified contributions to public

education entities, school improvement organizations, local education
funds, and/or educational scholarship organizations. To be eligible to
claim the tax credit provided by new section 42, a taxpayer must,
prior to making a contribution for which the taxpayer will seek a
credit, apply to the Department of Taxation and Finance ("DTF") for a
contribution authorization certificate. If there is credit available,
DTF will issue a contribution authorization certificate to the
taxpayer and provide notice of the issuance of the certificate to the
entity, public school, or public school district named in the
certificate. The contribution authorization certificate will list the
amount of the authorized contribution and the entity, public school or
public school district for which the contribution is authorized.
Taxpayers have until the date listed on their contribution
authorization certificate, which cannot be later than December 31 of
the calendar year, to make the contribution to the named entity,
public school, or public school district. Upon receipt of a timely
authorized contribution, the recipient will issue a certificate of
receipt to the taxpayer. If a contribution is not timely received, the
recipient named in the contribution authorization certificate will
notify DTF. The amount of such authorized contribution will be added
to the maximum amount of credit available (credit cap) in the
immediately following calendar year.

The maximum amount of credit that a taxpayer may claim for qualified
contributions made in any year is 90% of the taxpayer's qualified
contributions. This amount is capped at $1 million. This credit is not
refundable and any amount of credit that cannot be used for the
contribution year may be carried forward for 5 years.

Taxpayers may not use a qualified contribution as both a charitable
contribution deduction to decrease their New York State income tax
liability and a credit against their New York State income tax.
Corporations must add the contribution amount claimed as a charitable
contribution at the Federal level back to entire net income.
Individuals who itemize their deductions on their Federal return must
add the contribution amount claimed as a charitable contribution at
the Federal level back to income on the New York State return.

The credit is capped at $150 million for calendar year 2017 and $225
million in 2018 plus any amounts required to be added to the cap due
to authorized contributions that were not timely made in the
immediately preceding calendar year. Beginning in calendar year 2019,
the credit is capped at $300 million plus any amounts required to be
added to the cap due to authorized contributions that were not timely
made in the immediately preceding calendar year. One half of the
annual cap will be available for qualified contributions made to
public education entities, school improvement organizations, and local
education funds and one half of the annual cap will be available to
educational scholarship organizations to provide scholarships to
public or non-public schools.

Section two also requires a joint report from the Commissioner and the
Commissioner of the Department of Education. The joint report shall
include, among other things, statistics regarding the number of
qualified contributions made to each type of recipient and the
distribution of the recipients by county.

Section three of the bill amends Tax Law section 208(9)(b) by adding a
new subparagraph (22) to provide that if a taxpayer claims a
charitable contribution deduction at the Federal level for any amount
that the taxpayer claimed as a credit pursuant to Tax Law section
210-B(49), such amount must be added back to the taxpayer's entire net
income computation.

Section four of the bill amends Tax Law section 210-B to add a new
subdivision (49) to provide the mechanism for Article 9-A taxpayers to
claim the education investment tax credit. Any unused credit can be
carried forward for 5 years.

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

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

Section seven of the bill amends Tax Law section 606 by adding a new
subsection (ccc) to provide the mechanism for Article 22 taxpayers to
claim the education investment incentives credit. Any unused credit
can be carried forward for 5 years.

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

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

Additionally, this new Article contains the same definitions and same
joint report requirement that are provided in new Tax Law section 42.

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

Section eleven of this bill contains the severability clause.

Section twelve of this bill provides that this act shall take effect
immediately and shall apply to taxable years beginning after December
31, 2016.

 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. Additionally, permitting school
personnel to claim a credit for the purchase of classroom
instructional materials and supplies will ensure a wider availability
of such materials and supplies for all students.

 LEGISLATIVE HISTORY :  2015: S1976 - Passed the Senate 2014: S.6808 -
Referred to Investigations and Government Operations

Similar to:  2013-4: S.4099-A - Referred to Investigations and
Government Operations 2011-2: S.3072 - Passed the Senate both years

 FISCAL IMPLICATIONS :  $150 million for calendar year 2017, $225
million in calendar year 2018, and $300 million for each calendar year
thereafter beginning in 2019.

 EFFECTIVE DATE :  This act shall take effect immediately and shall
apply to taxable years beginning after December 31, 2016.

S1976A (ACTIVE) - Bill Text download pdf

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

                                 1976--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 16, 2015
                               ___________

Introduced  by  Sens.  GOLDEN,  FELDER, ADDABBO, AVELLA, BONACIC, BOYLE,
  CROCI, DIAZ, FLANAGAN, FUNKE,  GALLIVAN,  HAMILTON,  HASSELL-THOMPSON,
  KLEIN,  LANZA, LARKIN, LATIMER, MARCHIONE, MARTINS, SAVINO, VALESKY --
  read twice and ordered printed, and when printed to  be  committed  to
  the  Committee  on  Rules  -- recommitted to the Committee on Rules in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "education investment incentives act".
  S 2.  The tax law is amended by adding a new section  42  to  read  as
follows:
  S  42.  EDUCATION  INVESTMENT  TAX  CREDIT.   (A) DEFINITIONS. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME  DEFI-
NITION AS PROVIDED FOR IN ARTICLE TWENTY-FIVE OF THE EDUCATION LAW:
  "AUTHORIZED CONTRIBUTION";
  "CONTRIBUTION";
  "EDUCATIONAL PROGRAM";
  "EDUCATIONAL SCHOLARSHIP ORGANIZATION";
  "ELIGIBLE PUPIL";
  "LOCAL EDUCATION FUND";
  "NONPUBLIC SCHOOL";
  "PUBLIC EDUCATION ENTITY";
  "PUBLIC SCHOOL";
  "QUALIFIED CONTRIBUTION";
  "QUALIFIED EDUCATOR";
  "QUALIFIED SCHOOL";

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07927-05-6

S. 1976--A                          2

  "SCHOLARSHIP"; AND
  "SCHOOL IMPROVEMENT ORGANIZATION".
  (B)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE
NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL  BE  ALLOWED  CREDIT  AGAINST
SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF
THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS  MADE  DURING  THE
TAXABLE YEAR.
  (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT
OF  THE  TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS, CAPPED AT ONE MILLION
DOLLARS.  A TAXPAYER THAT IS A PARTNER IN A  PARTNERSHIP,  MEMBER  OF  A
LIMITED  LIABILITY  COMPANY  OR SHAREHOLDER IN AN S CORPORATION SHALL BE
ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER-
SHIP, LIMITED LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT  SUCH  A
TAXPAYER  SHALL  NOT  CLAIM CREDIT IN EXCESS OF THE LIMIT IMPOSED BY THE
PRECEDING SENTENCE.
  (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE.  THE COMMIS-
SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE
AMOUNT OF AVAILABLE CREDIT FOR WHICH TAXPAYERS  MAY  APPLY  PURSUANT  TO
THIS  SECTION.    SUCH  RUNNING TOTAL SHALL BE UPDATED ON A DAILY BASIS.
ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S
WEBSITE  A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
LAW.  THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
LIST  OF  PUBLIC  EDUCATION  ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS,
LOCAL EDUCATION FUNDS AND EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  WHOSE
APPROVAL  TO  ISSUE  CERTIFICATES OF RECEIPT HAS BEEN REVOKED ALONG WITH
THE DATE OF REVOCATION.
  (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY,  SCHOOL  IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION,  THE  TAXPAYER  SHALL  APPLY  TO THE DEPARTMENT FOR A CONTRIBUTION
AUTHORIZATION CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION  SHALL
BE  IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE DEPARTMENT
MAY ALLOW TAXPAYERS TO MAKE MULTIPLE  APPLICATIONS  ON  THE  SAME  FORM,
PROVIDED  THAT  EACH  CONTRIBUTION  LISTED  ON SUCH APPLICATION SHALL BE
TREATED AS A SEPARATE APPLICATION AND THAT THE  DEPARTMENT  SHALL  ISSUE
SEPARATE  CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH APPLICA-
TION.
  (F) CONTRIBUTION AUTHORIZATION CERTIFICATES. 1.   ISSUANCE OF  CERTIF-
ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
ICATES  IN  TWO  PHASES.  IN PHASE ONE, WHICH BEGINS ON THE FIRST DAY OF
JANUARY AND ENDS ON THE THIRTY-FIRST DAY OF  JANUARY,  THE  COMMISSIONER
SHALL  ACCEPT  APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES.
COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE
CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR
WHICH APPLICATIONS HAVE BEEN  RECEIVED  DURING  PHASE  ONE  EXCEEDS  THE
AMOUNT  OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, THEN PHASE
ONE OF THE CREDIT CAP APPLICATION SHALL BE ALLOCATED IN  TWO  STEPS.  IN
STEP ONE, THE ALLOCATION SHALL EQUAL THE CONTRIBUTION CAP DIVIDED BY THE
TOTAL  NUMBER  OF  APPLICATIONS  FOR  CONTRIBUTIONS, ROUNDED DOWN TO THE
NEAREST CENT. EACH APPLICATION REQUESTING AN AMOUNT WHICH IS  LESS  THAN
OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR
APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED
TO AS "EXCESS DISTRIBUTIONS" FOR THE PURPOSES OF THIS SUBDIVISION, SHALL

S. 1976--A                          3

BE  AVAILABLE FOR ALLOCATION IN STEP TWO. EACH APPLICATION REQUESTING AN
AMOUNT WHICH EXCEEDS THE ALLOCATION IN STEP ONE SHALL BE ALLOCATED CRED-
ITS IN STEP TWO. IN STEP TWO, IF EXCESS DISTRIBUTIONS  EQUAL  ZERO  THEN
EACH  APPLICATION  SHALL  RECEIVE  THE  ALLOCATION AMOUNT FROM STEP ONE,
OTHERWISE EACH APPLICATION SHALL RECEIVE AN AMOUNT EQUAL TO THE  SUM  OF
THE  (I)  THE ALLOCATION AMOUNT IN STEP ONE AND (II) A PRO RATA SHARE OF
AGGREGATE EXCESS DISTRIBUTIONS  BASED  ON  THE  DIFFERENCE  BETWEEN  THE
AMOUNT  ON THEIR APPLICATION FOR CONTRIBUTION AND THE ALLOCATION IN STEP
ONE. FOR THE PURPOSES OF THIS SUBDIVISION, MULTIPLE APPLICATIONS BY  THE
SAME  TAXPAYER SHALL BE TREATED AS ONE APPLICATION. IF THE CREDIT CAP IS
NOT EXCEEDED, PHASE TWO COMMENCES ON  FEBRUARY  TWENTIETH  AND  ENDS  ON
OCTOBER  THIRTY-FIRST.  DURING  PHASE  TWO  THE COMMISSIONER SHALL ISSUE
CONTRIBUTION AUTHORIZATION CERTIFICATES  ON  A  FIRST-COME  FIRST  SERVE
BASIS  BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S APPLI-
CATION FOR SUCH CERTIFICATE.   CONTRIBUTION  AUTHORIZATION  CERTIFICATES
FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN
THE  TWENTIETH  DAY OF FEBRUARY. CONTRIBUTION AUTHORIZATION CERTIFICATES
FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE MAILED  WITHIN  FIVE
DAYS OF RECEIPT OF SUCH APPLICATIONS.
  2.  CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION
AUTHORIZATION CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE  WAS
ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
CERTIFICATE  MUST BE MADE, WHICH SHALL BE NO LATER THAN DECEMBER THIRTY-
FIRST OF THE YEAR FOR WHICH THE CONTRIBUTION  AUTHORIZATION  CERTIFICATE
WAS  ISSUED,  (III)  THE  AMOUNT  OF  AUTHORIZED  CONTRIBUTION, (IV) THE
CERTIFICATE NUMBER, (V) THE TAXPAYER'S NAME AND ADDRESS, (VI)  THE  NAME
AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION,  LOCAL  EDUCATION  FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION TO
WHICH THE TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION, AND  (VII)  ANY
OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
  3.  NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION AUTHORIZATION
CERTIFICATE. UPON THE ISSUANCE OF A CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATE  TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC EDUCATION
ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR  EDUCA-
TIONAL  SCHOLARSHIP  ORGANIZATION  OF  THE ISSUANCE OF SUCH CONTRIBUTION
AUTHORIZATION CERTIFICATE.  SUCH  NOTIFICATION  SHALL  INCLUDE  (I)  THE
TAXPAYER'S  NAME AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS ISSUED,
(III) THE DATE BY  WHICH  THE  AUTHORIZED  CONTRIBUTION  LISTED  IN  THE
NOTIFICATION  MUST  BE  MADE  BY  THE  TAXPAYER,  (IV) THE AMOUNT OF THE
AUTHORIZED CONTRIBUTION,  (V)  THE  CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATE'S  CERTIFICATE  NUMBER,  AND  (VI)  ANY OTHER INFORMATION THAT THE
COMMISSIONER DEEMS NECESSARY.
  (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  SHALL  ISSUE A CERTIFICATE OF RECEIPT FOR ANY
CONTRIBUTION MADE BY A TAXPAYER UNLESS  SUCH  PUBLIC  EDUCATION  ENTITY,
SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION HAS BEEN  APPROVED  TO  ISSUE  CERTIFICATES  OF
RECEIPT  PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC
EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL  ISSUE  A  CERTIFICATE  OF
RECEIPT  FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA-
TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
DEPARTMENT THAT  THE  DEPARTMENT  ISSUED  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION.

S. 1976--A                          4

  2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
TO  THE  PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL
EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER  NO  LATER
THAN  THE  DATE  BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE
MADE, SUCH PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZATION,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL,
WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION,  ISSUE  TO
THE  TAXPAYER  A  CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE
TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE  AMOUNT  LISTED  ON
THE  TAXPAYER'S  CONTRIBUTION  AUTHORIZATION  CERTIFICATE,  THE TAXPAYER
SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
  3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
STATE  (I)  THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION,  (II)  THE TAXPAYER'S NAME AND ADDRESS, (III)
THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND
THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
TOTAL AMOUNT OF CONTRIBUTIONS, (VI) CERTIFICATE OF  RECEIPT  NUMBER  AND
(VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
  4. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
RECEIPT.  UPON  THE  ISSUANCE  OF  A CERTIFICATE OF RECEIPT, THE ISSUING
PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,  LOCAL  EDUCA-
TION  FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT  WITH
NOTIFICATION  OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER
PRESCRIBED BY THE DEPARTMENT.
  5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL  IMPROVEMENT  ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
THIS  SECTION  REGARDING  THE  ISSUANCE  OF A CONTRIBUTION AUTHORIZATION
CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS  OF  THE  EXPIRATION
DATE  FOR  SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION TO THE
DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE
FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
  6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
ERY OF THE FAILURE OF ANY PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT
PROGRAM,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
TO COMPLY WITH THE NOTIFICATION REQUIREMENTS  PRESCRIBED  BY  PARAGRAPHS
FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
OF  COMPLIANCE  FAILURE  TO SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION.
SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS  FROM
THE  DATE  OF  SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARA-
GRAPHS FOUR AND FIVE OF THIS SUBDIVISION. SUCH PERIOD  MAY  BE  EXTENDED
FOR  AN  ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM,
FUND, OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE  SET
FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL
NOTIFY  THE BOARD OF REGENTS AND THE COMMISSIONER OF EDUCATION THAT SUCH
ENTITY, PROGRAM, FUND, OR ORGANIZATION FAILED TO MAKE THE  NOTIFICATIONS
PRESCRIBED BY PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
  (H)  CREDIT  CAP.  THE  MAXIMUM  PERMITTED  CREDITS UNDER THIS SECTION
AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
TWO THOUSAND SEVENTEEN SHALL BE ONE HUNDRED FIFTY  MILLION  DOLLARS.  IN

S. 1976--A                          5

CALENDAR YEAR TWO THOUSAND EIGHTEEN, THE MAXIMUM PERMITTED CREDITS UNDER
THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE
MILLION  DOLLARS  PLUS  ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE
CAP  PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  FOR CALENDAR YEAR TWO
THOUSAND NINETEEN AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM PERMIT-
TED CREDITS AVAILABLE TO ALL TAXPAYERS SHALL BE  THREE  HUNDRED  MILLION
DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE CAP PURSU-
ANT  TO  SUBDIVISION (I) OF THIS SECTION.  THE MAXIMUM PERMITTED CREDITS
UNDER THIS SECTION FOR QUALIFIED CONTRIBUTIONS SHALL BE ALLOCATED  FIFTY
PERCENT  TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS,
AND LOCAL EDUCATION FUNDS AND FIFTY PERCENT TO  EDUCATIONAL  SCHOLARSHIP
ORGANIZATIONS.
  (I)  ADDITIONS  TO  CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT.  ANY
AMOUNTS FOR WHICH THE DEPARTMENT RECEIVES NOTIFICATION  OF  NON-ISSUANCE
OF  A  CERTIFICATE  OF  RECEIPT  SHALL BE ADDED TO THE CAP PRESCRIBED IN
SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
  (J) REGULATIONS. THE COMMISSIONER IS HEREBY AUTHORIZED  TO  PROMULGATE
AND  ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE IMPLEMEN-
TATION OF THIS SECTION.
  (K) WRITTEN REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR EACH  CALEN-
DAR  YEAR,  FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND THE
COMMISSIONER OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT  TO  THE
GOVERNOR,  THE  TEMPORARY  PRESIDENT  OF  THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE  CHAIRMAN
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION INVEST-
MENT  TAX  CREDIT.  SUCH  REPORT  SHALL CONTAIN INFORMATION FOR ARTICLES
NINE-A AND TWENTY-TWO, RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLI-
CATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE OF THE CONTRIB-
UTION AUTHORIZATION CERTIFICATES  ISSUED  FOR  CONTRIBUTIONS  TO  PUBLIC
EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS, AND SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE  GEOGRAPH-
ICAL  DISTRIBUTION  BY  COUNTY  OF (A) THE APPLICATIONS FOR CONTRIBUTION
AUTHORIZATION CERTIFICATES, DISTRIBUTION BY COUNTY  OF  (B)  THE  PUBLIC
EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS LISTED  ON  THE  ISSUED
CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING
GEOGRAPHICAL  DISTRIBUTION  BY  COUNTY, OF THE NUMBER OF ELIGIBLE PUPILS
THAT RECEIVED SCHOLARSHIPS, THE NUMBER OF QUALIFIED SCHOOLS ATTENDED  BY
ELIGIBLE  PUPILS  THAT RECEIVED SUCH SCHOLARSHIPS, AND THE AVERAGE VALUE
OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE PUPILS. THE  COMMISSIONER  AND
DESIGNATED  EMPLOYEES  OF  THE  DEPARTMENT,  THE  BOARD  OF REGENTS, THE
COMMISSIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE  STATE  EDUCA-
TION DEPARTMENT, SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE
INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA-
TION  FUNDS  AND  EDUCATIONAL SCHOLARSHIP ORGANIZATIONS THAT APPLIED FOR
APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED  CONTRIBUTIONS;  AND  THE
PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO
ISSUE CERTIFICATES OF RECEIPT, INCLUDING  INFORMATION  CONTAINED  IN  OR
DERIVED  FROM  APPLICATION  FORMS AND REPORTS SUBMITTED TO THE EDUCATION
DEPARTMENT OR BOARD OF REGENTS.
  (L) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 49;
  2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).

S. 1976--A                          6

  S  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 22 to read as follows:
  (22)  THE  AMOUNT  OF  ANY  DEDUCTION  ALLOWED PURSUANT TO SECTION ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE  CODE  FOR  WHICH  A  CREDIT  IS
CLAIMED  PURSUANT TO SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B
OF THIS ARTICLE.
  S 4. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 49 to read as follows:
  49.  EDUCATION  INVESTMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO  LESS
THAN  THE  HIGHER  OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) OR (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF
THE AMOUNT OF  CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  FOR  QUALIFIED
CONTRIBUTIONS  FOR  ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT 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 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
follows:
(XLI) EDUCATION INVESTMENT           AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (CCC)    FORTY-NINE OF SECTION TWO HUNDRED
                                     TEN-B
  S 6. Section 606  of  the  tax  law  is  amended  by  adding  two  new
subsections (w) and (w-1) to read as follows:
  (W)  HOME-BASED  INSTRUCTIONAL MATERIALS CREDIT. (1) FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, A  TAXPAYER
SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
THE PURCHASE  OF  INSTRUCTIONAL  MATERIALS  APPROVED  BY  THE  EDUCATION
DEPARTMENT  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 TWO HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF THE
COST OF SUCH PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  (W-1) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT.   (1)  FOR  TAXABLE
YEARS  BEGINNING  ON  AND AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, A
TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO THE  LESSER  OF  THE  AMOUNT
PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
AND  SUPPLIES,  OR  TWO HUNDRED DOLLARS; PROVIDED THAT THE TAXPAYER IS A
TEACHER OR INSTRUCTOR IN A  QUALIFIED  SCHOOL,  AS  DEFINED  IN  SECTION
FORTY-TWO  OF  THIS  CHAPTER,  FOR  AT LEAST NINE HUNDRED HOURS DURING A
SCHOOL YEAR. FOR PURPOSES OF THIS SUBSECTION, THE  TERM  "MATERIALS  AND
SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE
CLASSROOM IN ANY QUALIFIED SCHOOL.

S. 1976--A                          7

  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH  THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 7. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  EDUCATION  INVESTMENT  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS  SUBSECTION  FOR  ANY  QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR
EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S 8. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 9 to read as follows:
  (9) THE AMOUNT OF ANY FEDERAL DEDUCTION  FOR  CONTRIBUTIONS  MADE  FOR
WHICH  A  TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF SECTION SIX
HUNDRED SIX OF THIS ARTICLE.
  S 9. The education law is amended by adding a new article 25  to  read
as follows:
                               ARTICLE 25
                 EDUCATION INVESTMENT TAX CREDIT PROGRAM
SECTION 1209. SHORT TITLE.
        1210. DEFINITIONS.
        1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1212. APPLICATIONS   FOR   APPROVAL  TO  ISSUE  CERTIFICATES  OF
                RECEIPT.
        1213. APPLICATION APPROVAL.
        1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1215. RECORDKEEPING.
        1216. JOINT ANNUAL REPORT.
        1217. COMMISSIONER; POWERS.
  S 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "EDUCATION INVESTMENT TAX CREDIT PROGRAM".
  S  1210.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "AUTHORIZED CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT  LISTED  ON
THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
  2.  "CONTRIBUTION"  MEANS  A  DONATION PAID BY CASH, CHECK, ELECTRONIC
FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD MADE BY  THE  TAXPAYER  DURING
THE TAX YEAR.
  3.  "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC SCHOOL
THAT ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A  PRE-KINDERGARTEN
PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF
THIS  DEFINITION,  THE  INSTRUCTION, MATERIALS, PROGRAMS OR OTHER ACTIV-
ITIES 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 FAMILY AND CONSUMER  SCIENCES;
LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH-
NOLOGY  AND  SCIENTIFIC  ACHIEVEMENT;  (B) INSTRUCTION OR PROGRAMMING TO
MEET THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH  DISABILI-

S. 1976--A                          8

TIES,  INCLUDING  TUTORING  OR  COUNSELING;  OR  (C)  USE OF SPECIALIZED
INSTRUCTIONAL MATERIALS, INSTRUCTORS OR INSTRUCTION NOT  PROVIDED  BY  A
PUBLIC SCHOOL.
  4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
TY WHICH (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C)  OF  SECTION  FIVE  HUNDRED  ONE  OF  THE INTERNAL REVENUE CODE, (B)
COMMITS FOR THE EXPENDITURE OF AT LEAST NINETY PERCENT  OF  THE  REVENUE
FROM  QUALIFIED  CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (C) DEPOS-
ITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALI-
FIED CONTRIBUTIONS IN AN ACCOUNT THAT IS  SEPARATE  FROM  THE  ORGANIZA-
TION'S  OPERATING  OR  OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR
INCOME ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO  ELIGIBLE
PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (A) IS A RESIDENT OF THIS STATE,
(B)  IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION THIRTY-
TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE
DECEMBER FIRST OF THE YEAR IN WHICH THEY ARE ENROLLED IN  A  PRE-KINDER-
GARTEN  PROGRAM,  (C)  ATTENDS OR IS ABOUT TO ATTEND A QUALIFIED SCHOOL,
AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS  INCOME
OF  FIVE  HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR HOUSE-
HOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL  BE
INCREASED  BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS OF TWO,
NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
  6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH  (A)  IS
EXEMPT  FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (B)  IS  ESTABLISHED  FOR
THE  PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE PUBLIC
SCHOOL, OR PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY  PERCENT  OF
THE  QUALIFIED  CONTRIBUTIONS  RECEIVED DURING THE CALENDAR YEAR AND ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL
OR SCHOOLS OR PUBLIC SCHOOL DISTRICT OR DISTRICTS  THAT  SUCH  FUND  HAS
BEEN  ESTABLISHED  TO  SUPPORT,  AND  (D)  DEPOSITS  AND HOLDS QUALIFIED
CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN  AN
ACCOUNT  THAT IS 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
LOCATED IN THIS STATE, OTHER THAN A PUBLIC  SCHOOL,  THAT  IS  PROVIDING
INSTRUCTION  AT  ONE  OR  MORE LOCATIONS TO A STUDENT IN ACCORDANCE WITH
SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
  8. "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC  SCHOOL
DISTRICT,  PROVIDED  THAT  SUCH PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT
DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME  DERIVED  FROM
QUALIFIED  CONTRIBUTIONS  IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS  UNTIL  SUCH
QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED
TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  9.  "PUBLIC  SCHOOL"  MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION  OR  CHARTER
SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A  TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE  ISSUED  TO  THE
TAXPAYER  AND  FOR  WHICH  THE  TAXPAYER  HAS  RECEIVED A CERTIFICATE OF

S. 1976--A                          9

RECEIPT FROM SUCH ENTITY, FUND, OR ORGANIZATION.   A  CONTRIBUTION  DOES
NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN
ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPEC-
IFIED STUDENT.
  11.  "QUALIFIED  EDUCATOR"  MEANS  AN  INDIVIDUAL  WHO IS A TEACHER OR
INSTRUCTOR IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS  DURING
A SCHOOL YEAR.
  12. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.
  13.  "SCHOLARSHIP"  MEANS  AN EDUCATIONAL SCHOLARSHIP WHICH PROVIDES A
TUITION GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED  SCHOOL
IN  AN  AMOUNT  NOT  TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL
LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH  ELIGIBLE  PUPIL
OR  HIS  OR  HER  PARENT,  PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A
PUBLIC SCHOOL IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS  NOT  A
RESIDENT,  THE  AMOUNT  OF  THE  EDUCATIONAL SCHOLARSHIP AWARDED MAY NOT
EXCEED THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH  D
OF  SUBDIVISION  FOUR  OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER
LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH  ELIGIBLE  PUPIL
OR  HIS  OR  HER  PARENT,  PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A
RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
  14. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS  A  NOT-FOR-PROFIT  ENTITY
WHICH  (I)  IS  EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II)  USES
AT  LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING
THE CALENDAR YEAR AND ANY INCOME DERIVED FROM  SUCH  QUALIFIED  CONTRIB-
UTIONS  TO  ASSIST  PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN
THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY  MAKING
CONTRIBUTIONS  TO  ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE  OR  PROVIDING  EDUCATIONAL  PROGRAMS  TO,  OR  IN
CONJUNCTION  WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED  CONTRIBUTIONS
AND  ANY  INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT
THAT IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS  UNTIL
SUCH  QUALIFIED  CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND (IV)
IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO  THIS  ARTICLE.
SUCH  ENTITY  MAY  ALLOW  THE TAXPAYER TO CHOOSE TO DONATE TO A PROGRAM,
PROJECT OR INITIATIVE IDENTIFIED BY A QUALIFIED EDUCATOR FOR  USE  IN  A
PUBLIC SCHOOL.
  S  1211.  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS
AND PUBLIC SCHOOL  DISTRICTS.  ALL  PUBLIC  SCHOOLS  AND  PUBLIC  SCHOOL
DISTRICTS  SHALL  BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT PROVIDED,
THAT A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED  IF
EITHER  (A) THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT
AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED  FROM  QUALIFIED
CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL OR SCHOOL
DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
OR INCOME ARE WITHDRAWN FOR USE, OR (B) THE BOARD OF REGENTS HAS REVOKED
SUCH  APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT PURSUANT
TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE.
  2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS AND LOCAL EDUCATION FUNDS.  NO  SCHOOL  IMPROVEMENT  ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY  CERTIFICATES  OF  RECEIPT WITHOUT FILING AN APPLICATION PURSUANT TO

S. 1976--A                         10

SECTION TWELVE HUNDRED TWELVE OF THIS  ARTICLE  AND  RECEIVING  APPROVAL
PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
  S  1212.  APPLICATIONS  FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP  ORGANIZA-
TION,  AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE BOARD
OF REGENTS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND
MANNER PRESCRIBED BY THE BOARD; PROVIDED  THAT  SUCH  APPLICATION  SHALL
INCLUDE:  (A)  SUBMISSION  OF DOCUMENTATION THAT SUCH SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP  ORGANIZA-
TION  HAS  BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARAGRAPH THREE OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE;
(B) THE MOST RECENT ANNUAL FINANCIAL AUDIT, WHICH SHALL BE COMPLETED  BY
AN  INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANT  AND  A LIST OF NAMES AND
ADDRESSES OF ALL MEMBERS OF THE GOVERNING BOARD OF THE  SCHOOL  IMPROVE-
MENT  ORGANIZATION,  LOCAL  EDUCATION  FUND  OR  EDUCATIONAL SCHOLARSHIP
ORGANIZATION; AND (C)  AN  EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  SHALL
PROVIDE  CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE STUDENTS.
THE BOARD OF REGENTS, COMMISSIONER OR DEPARTMENT SHALL NOT  REQUIRE  ANY
OTHER  INFORMATION  FOR  SUCH  APPLICATION  EXCEPT AS AUTHORIZED IN THIS
ARTICLE OR BY SECTION FORTY-TWO OF THE TAX LAW.
  S 1213. APPLICATION APPROVAL. THE BOARD OF REGENTS SHALL  REVIEW  EACH
APPLICATION  TO  ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE AT THE NEXT SCHEDULED
MEETING OF THE BOARD OF REGENTS THAT FOLLOWS THE RECEIPT OF SUCH  APPLI-
CATION, BUT NOT LATER THAN THE NEXT MEETING THEREAFTER.
  S  1214.  REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
BOARD OF REGENTS, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION  AND
FINANCE,  MAY  REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING  THAT  SUCH  ORGANIZATION,  FUND,  SCHOOL OR SCHOOL DISTRICT HAS
VIOLATED THIS ARTICLE  OR  SECTION  FORTY-TWO  OF  THE  TAX  LAW.  THESE
VIOLATIONS  SHALL  INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING:
(A) FAILURE  TO  MEET  THE  REQUIREMENTS  OF  THIS  ARTICLE  OR  SECTION
FORTY-TWO  OF THE TAX LAW, (B) THE FAILURE TO MAINTAIN FULL AND ADEQUATE
RECORDS WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS, (C)  THE
FAILURE  TO SUPPLY SUCH RECORDS TO THE COMMISSIONER, DEPARTMENT OF TAXA-
TION AND FINANCE OR BOARD OF REGENTS WHEN REQUESTED BY THE DEPARTMENT OR
BOARD, OR (D) THE FAILURE TO PROVIDE NOTICE TO THE DEPARTMENT  OF  TAXA-
TION  AND  FINANCE  OF  THE  ISSUANCE  OR NONISSUANCE OF CERTIFICATES OF
RECEIPT PURSUANT TO SECTION FORTY-TWO OF THE TAX LAW; PROVIDED  HOWEVER,
THAT  THE  BOARD  OF  REGENTS SHALL NOT REVOKE APPROVAL PURSUANT TO THIS
SECTION BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE COMMISSIONER OF
TAXATION AND FINANCE AGREES THAT REVOCATION IS WARRANTED;  AND  PROVIDED
FURTHER  THAT  THE  BOARD  SHALL  NOT  REVOKE  APPROVAL PURSUANT TO THIS
SECTION WHEN THE FAILURE TO COMPLY IS DUE  TO  CLERICAL  ERROR  AND  NOT
NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE LAW. WITHIN FIVE DAYS OF THE
DETERMINATION  REVOKING APPROVAL, THE BOARD SHALL PROVIDE NOTICE OF SUCH
REVOCATION TO THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL  IMPROVE-
MENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL
DISTRICT AND TO THE DEPARTMENT OF TAXATION AND FINANCE.
  S  1215.  RECORDKEEPING.  EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND
PUBLIC SCHOOL DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE  OF  RECEIPT
SHALL  MAINTAIN  RECORDS  INCLUDING  (A) NOTIFICATIONS RECEIVED FROM THE
DEPARTMENT OF TAXATION  AND  FINANCE,  (B)  NOTIFICATIONS  MADE  TO  THE

S. 1976--A                         11

DEPARTMENT  OF  TAXATION  AND  FINANCE, (C) COPIES OF QUALIFIED CONTRIB-
UTIONS RECEIVED, (D) COPIES OF THE DEPOSIT OF  SUCH  QUALIFIED  CONTRIB-
UTIONS,  (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL FINAN-
CIAL  STATEMENTS,  (G)  IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS,
EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND  LOCAL  EDUCATION  FUNDS,  THE
APPLICATION  SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS
ARTICLE AND THE APPROVAL ISSUED BY THE BOARD OF  REGENTS,  AND  (H)  ANY
OTHER INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMIS-
SIONER OR RULE PROMULGATED BY THE BOARD OF REGENTS.
  S  1216.  JOINT  ANNUAL  REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION  AND  FINANCE  AND  THE
COMMISSIONER,  JOINTLY,  SHALL  SUBMIT  A  WRITTEN REPORT AS PROVIDED IN
SUBDIVISION (K) OF SECTION FORTY-TWO OF THE TAX LAW.
  S 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
SECTION. THE COMMISSIONER SHALL MAKE  ANY  APPLICATION  REQUIRED  TO  BE
FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS
OF THE EFFECTIVE DATE OF THIS ARTICLE.
  S  10.  The education law is amended by adding a new section 1503-a to
read as follows:
  S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
OF  A  GENERAL  LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL OR SPECIAL LAW TO THE  CONTRARY,  THE  RECEIPT  OF  SUCH  GIFTS,
DONATIONS,  CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-
FROM, SHALL BE DISREGARDED  FOR  THE  PURPOSES  OF  ALL  APPORTIONMENTS,
COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
  S  11.  Severability. If any provision of this section or the applica-
tion thereof to any person or circumstances is held invalid, such  inva-
lidity  shall not affect other provisions or applications of the section
which can be given effect without the invalid provision or  application,
and to this end the provisions of this section are declared to be sever-
able.
  S  12. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2016.

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The New York State Senate

senate Bill S1976A

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Jan 11, 2016 - floor Vote

Floor Vote: Jan 11, 2016

Jan 11, 2016 - Rules committee Vote

Rules Committee Vote: Jan 11, 2016

Jan 21, 2015 - floor Vote

Floor Vote: Jan 21, 2015

Jan 21, 2015 - Rules committee Vote

Committee Vote: Jan 21, 2015

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S1976 - Details

S1976 - Summary

S1976 - Sponsor Memo

S1976 - Bill Text download pdf

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S1976A (ACTIVE) - Details

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senate Bill S1976A

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Sponsored By

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Jan 11, 2016 - floor Vote

Floor Vote: Jan 11, 2016

Jan 11, 2016 - Rules committee Vote

Rules Committee Vote: Jan 11, 2016

Jan 21, 2015 - floor Vote

Floor Vote: Jan 21, 2015

Jan 21, 2015 - Rules committee Vote

Committee Vote: Jan 21, 2015

Bill Amendments

Co-Sponsors

S1976 - Details

S1976 - Summary

S1976 - Sponsor Memo

S1976 - Bill Text download pdf

Co-Sponsors

S1976A (ACTIVE) - Details

S1976A (ACTIVE) - Summary

S1976A (ACTIVE) - Sponsor Memo

S1976A (ACTIVE) - Bill Text download pdf

Comments