| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jan 03, 2018 |
referred to investigations and government operations |
| Dec 15, 2017 |
print number 4366a |
| Dec 15, 2017 |
amend and recommit to investigations and government operations |
| Feb 10, 2017 |
referred to investigations and government operations |
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Senate Bill S4366A
2017-2018 Legislative Session
Establishes the "education affordability act" and tax credit
download bill text pdfSponsored By
(R, C, IP) Senate District
Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Bill Amendments
co-Sponsors
(D, IP) Senate District
(D) Senate District
(D) 15th Senate District
(R, C, IP) Senate District
(R, C, IP) Senate District
2017-S4366 - Details
- Current Committee:
- Senate Investigations And Government Operations
- Law Section:
- Tax Law
- Laws Affected:
- Add §44, amd §§208, 210-B, 606 & 615, Tax L; add Art 25 §§1209 - 1217, §1503-a, Ed L
- Versions Introduced in 2015-2016 Legislative Session:
-
S1976
2017-S4366 - Sponsor Memo
BILL NUMBER: S4366
TITLE OF BILL : An act to amend the tax law and the education law,
in relation to enacting the "education affordability 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 affordability act."
Section two of the bill adds new section 43 to the Tax Law, which is
the education affordability tax credit. New section 43 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 affordability 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 43, 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
dependent upon the taxpayer's Federal Adjusted Gross Income ("FAGI").
Taxpayers whose FAGI is less than $300,000 may claim credit for 90% of
their total qualified contributions. Taxpayers whose FAGI is $300,000
or more may claim credit for 75% of their total qualified
contributions. The maximum amount of credit that any taxpayer may
claim for qualified contributions made during a taxable year is
$875,000 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 2018 and $225
million in 2019 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 2020,
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 affordability 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 (xliii) to provide the mechanism for S Corporations to
claim the education affordability 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 Affordability 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 43.
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, 2017.
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 :
2016: S.1976-A - Passed the Senate
2015: S.1976 - 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 2018, $225 million in calendar year
2019, and $300 million for each calendar year thereafter beginning in
2020.
EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning after December 31, 2017.
2017-S4366 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
4366
2017-2018 Regular Sessions
I N S E N A T E
February 10, 2017
___________
Introduced by Sens. GOLDEN, SAVINO, FELDER, ADDABBO, MARCHIONE, SERINO
-- read twice and ordered printed, and when printed to be committed to
the Committee on Investigations and Government Operations
AN ACT to amend the tax law and the education law, in relation to enact-
ing the "education affordability 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 affordability act".
§ 2. The tax law is amended by adding a new section 43 to read as
follows:
§ 43. EDUCATION AFFORDABILITY 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
SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06396-04-7
S. 4366 2
THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS MADE DURING THE
TAXABLE YEAR.
(C) AMOUNT OF CREDIT. FOR TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS
INCOME IS LESS THAN THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR
DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT OF THE TAXPAYER'S TOTAL
QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND
DOLLARS. FOR TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER
THAN OR EQUAL TO THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR
DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
AMOUNT OF CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE TAXPAYER'S TOTAL
QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND
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 EIGHT HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS.
(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
S. 4366 3
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
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
S. 4366 4
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-
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 COMMISSIONER OF EDUCATION THAT SUCH ENTITY, PROGRAM, FUND, OR
ORGANIZATION FAILED TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS
FOUR AND FIVE OF THIS SUBDIVISION.
S. 4366 5
(H) CREDIT CAP. THE MAXIMUM PERMITTED CREDITS UNDER THIS SECTION
AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
TWO THOUSAND EIGHTEEN SHALL BE ONE HUNDRED FIFTY MILLION DOLLARS. IN
CALENDAR YEAR TWO THOUSAND NINETEEN, 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 TWENTY AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM PERMITTED
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 AFFORD-
ABILITY 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 COMMISSIONER 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 EDUCATION 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 COMMISSIONER OF EDUCATION.
(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;
S. 4366 6
2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).
§ 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.
§ 4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. EDUCATION AFFORDABILITY 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.
§ 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliii) to read as
follows:
(XLIII) EDUCATION AFFORDABILITY AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (CCC) SUBDIVISION FORTY-NINE OF SECTION
TWO HUNDRED TEN-B
§ 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 EIGHTEEN, 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 FOR USE IN NON-PUBLIC HOME-BASED EDUCATIONAL 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 EIGHTEEN, 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-THREE 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. 4366 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.
§ 7. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
(CCC) EDUCATION AFFORDABILITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-THREE 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.
§ 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.
§ 9. The education law is amended by adding a new article 25 to read
as follows:
ARTICLE 25
EDUCATION AFFORDABILITY 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.
§ 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "EDUCATION AFFORDABILITY PROGRAM".
§ 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. 4366 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. 4366 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.
§ 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 COMMISSIONER 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. 4366 10
SECTION TWELVE HUNDRED TWELVE OF THIS ARTICLE AND RECEIVING APPROVAL
PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
§ 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
COMMISSIONER FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM
AND MANNER PRESCRIBED BY THE COMMISSIONER; PROVIDED THAT SUCH APPLICA-
TION SHALL INCLUDE: (A) SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL
IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARA-
GRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTER-
NAL REVENUE CODE; (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 IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION; AND (C) AN EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION SHALL PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE
STUDENTS. NEITHER THE COMMISSIONER OR THE DEPARTMENT SHALL REQUIRE ANY
OTHER INFORMATION FOR SUCH APPLICATION EXCEPT AS AUTHORIZED IN THIS
ARTICLE OR BY SECTION FORTY-THREE OF THE TAX LAW.
§ 1213. APPLICATION APPROVAL. THE COMMISSIONER SHALL REVIEW EACH
APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE WITHIN SIXTY DAYS OF
RECEIPT OF SUCH APPLICATION.
§ 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
COMMISSIONER, 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-THREE 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-
THREE 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 OR THE DEPARTMENT OF
TAXATION AND FINANCE WHEN REQUESTED BY THE DEPARTMENT OR THE DEPARTMENT
OF TAXATION AND FINANCE, OR (D) THE FAILURE TO PROVIDE NOTICE TO THE
DEPARTMENT OF TAXATION AND FINANCE OF THE ISSUANCE OR NONISSUANCE OF
CERTIFICATES OF RECEIPT PURSUANT TO SECTION FORTY-THREE OF THE TAX LAW;
PROVIDED HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSU-
ANT 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 COMMISSIONER 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 COMMISSION-
ER SHALL PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION
FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF
TAXATION AND FINANCE.
§ 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. 4366 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 COMMISSIONER, AND (H) ANY OTHER
INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMISSIONER.
§ 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-THREE OF THE TAX LAW.
§ 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.
§ 10. The education law is amended by adding a new section 1503-a to
read as follows:
§ 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.
§ 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.
§ 12. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2017.
co-Sponsors
(D, IP) Senate District
(D) Senate District
(D) 15th Senate District
(R, C, IP) Senate District
(R, C, IP) Senate District
2017-S4366A (ACTIVE) - Details
- Current Committee:
- Senate Investigations And Government Operations
- Law Section:
- Tax Law
- Laws Affected:
- Add §44, amd §§208, 210-B, 606 & 615, Tax L; add Art 25 §§1209 - 1217, §1503-a, Ed L
- Versions Introduced in 2015-2016 Legislative Session:
-
S1976
2017-S4366A (ACTIVE) - Sponsor Memo
BILL NUMBER: S4366A
SPONSOR: GOLDEN
TITLE OF BILL:
An act to amend the tax law and the education law, in relation to enact-
ing the "education affordability act"
PURPOSE:
This bill would provide incentives in the form of tax credit for
donations to public education entities, school improvement organiza-
tions, 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 "educa-
tion affordability act."
Section two of the bill adds new section 44 to the Tax Law, which is the
education affordability tax credit. New section 44 includes cross-refer-
ences to the definitions of terms such as "authorized contribution,"
"public education entity, "local education fund," and "educational scho-
larship organization." These terms are defined in new Article 25 of the
Education Law, which is section 9 of this bill.
The education affordability tax credit is available to individuals and
Article 9-A taxpayers that make qualified contributions to public educa-
tion entities, school improvement organizations, local education funds,
and/or educational scholarship organizations. To be eligible to claim
the tax credit provided by new section 43, 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 certif-
icate of receipt to the taxpayer. If a contribution is not timely
received, the recipient named in the contribution authorization certif-
icate 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
dependent upon the taxpayer's Federal Adjusted Gross Income ("FAGI").
Taxpayers whose FAGI is less than $300,000 may claim credit for 90% of
their total qualified contributions. Taxpayers whose FAGI is $300,000 or
more may claim credit for 75% of their total qualified contributions.
The maximum amount of credit that any taxpayer may claim for qualified
contributions made during a taxable year is $875,000 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. Corpo-
rations must add the contribution amount claimed as a charitable
contribution at the Federal level back to entire net income. Individ-
uals 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 2019 and $225
million in 2020 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 2021, 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 imme-
diately 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 organiza-
tions 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 quali-
fied 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 computa-
tion.
Section four of the bill amends Tax Law section 210-B to add a new
subdivision (53) to provide the mechanism for Article 9-A taxpayers to
claim the education affordability 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 (xliii) to provide the mechanism for S Corporations to claim
the education affordability 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 taxpay-
er. 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 instruc-
tion 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 (jjj) 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 (10) 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 (jjj), 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 Affordability Program." This new article
provides the framework for public education entities, school improvement
organizations, local education funds, and educational scholarship organ-
izations 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 44.
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, 2018.
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 enter-
prise. 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. Addi-
tionally, 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:
2017: S.4366 - Referred to Investigations and Government Operations
2016: S.1976-A - Passed the Senate
2015: S.1976 - 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 2019, $225 million in calendar year 2020,
and $300 million for each calendar year thereafter beginning in 2021.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning after December 31, 2018.
2017-S4366A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
4366--A
2017-2018 Regular Sessions
I N S E N A T E
February 10, 2017
___________
Introduced by Sens. GOLDEN, SAVINO, FELDER, ADDABBO, MARCHIONE, SERINO
-- read twice and ordered printed, and when printed to be committed to
the Committee on Investigations and Government Operations -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the tax law and the education law, in relation to enact-
ing the "education affordability 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 affordability act".
§ 2. The tax law is amended by adding a new section 44 to read as
follows:
§ 44. EDUCATION AFFORDABILITY 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".
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06396-06-7
S. 4366--A 2
(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. FOR TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS
INCOME IS LESS THAN THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR
DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT OF THE TAXPAYER'S TOTAL
QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND
DOLLARS. FOR TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER
THAN OR EQUAL TO THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR
DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
AMOUNT OF CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE TAXPAYER'S TOTAL
QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND
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 EIGHT HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS.
(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
S. 4366--A 3
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
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,
S. 4366--A 4
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-
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
S. 4366--A 5
NOTIFY 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 NINETEEN SHALL BE ONE HUNDRED FIFTY MILLION DOLLARS. IN
CALENDAR YEAR TWO THOUSAND TWENTY, 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 TWENTY-ONE AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM
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.
(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 AFFORD-
ABILITY 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 COMMISSIONER 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 EDUCATION 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 COMMISSIONER OF EDUCATION.
S. 4366--A 6
(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 53;
2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (JJJ).
§ 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 23 to read as follows:
(23) 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 FIFTY-THREE OF SECTION TWO HUNDRED TEN-B
OF THIS ARTICLE.
§ 4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 53 to read as follows:
53. EDUCATION AFFORDABILITY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN
SECTION FORTY-FOUR OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE SIXTH DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (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.
§ 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliv) to read as
follows:
(XLIV) EDUCATION AFFORDABILITY AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (JJJ) SUBDIVISION FIFTY-THREE OF SECTION
TWO HUNDRED TEN-B
§ 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 NINETEEN, 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 FOR USE IN NON-PUBLIC HOME-BASED EDUCATIONAL 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 NINETEEN, 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-FOUR OF THIS CHAPTER, FOR AT LEAST NINE HUNDRED HOURS DURING A
S. 4366--A 7
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.
§ 7. Section 606 of the tax law is amended by adding a new subsection
(jjj) to read as follows:
(JJJ) EDUCATION AFFORDABILITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-FOUR 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.
§ 8. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 10 to read as follows:
(10) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CONTRIBUTIONS MADE FOR
WHICH A TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (JJJ) OF SECTION SIX
HUNDRED SIX OF THIS ARTICLE.
§ 9. The education law is amended by adding a new article 25 to read
as follows:
ARTICLE 25
EDUCATION AFFORDABILITY 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.
§ 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "EDUCATION AFFORDABILITY PROGRAM".
§ 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;
S. 4366--A 8
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 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-
S. 4366--A 9
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
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.
§ 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 COMMISSIONER 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,
S. 4366--A 10
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.
§ 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
COMMISSIONER FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM
AND MANNER PRESCRIBED BY THE COMMISSIONER; PROVIDED THAT SUCH APPLICA-
TION SHALL INCLUDE: (A) SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL
IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARA-
GRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTER-
NAL REVENUE CODE; (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 IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION; AND (C) AN EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION SHALL PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE
STUDENTS. NEITHER THE COMMISSIONER OR THE DEPARTMENT SHALL REQUIRE ANY
OTHER INFORMATION FOR SUCH APPLICATION EXCEPT AS AUTHORIZED IN THIS
ARTICLE OR BY SECTION FORTY-FOUR OF THE TAX LAW.
§ 1213. APPLICATION APPROVAL. THE COMMISSIONER SHALL REVIEW EACH
APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE WITHIN SIXTY DAYS OF
RECEIPT OF SUCH APPLICATION.
§ 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
COMMISSIONER, 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-FOUR 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-
FOUR 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 OR THE DEPARTMENT OF
TAXATION AND FINANCE WHEN REQUESTED BY THE DEPARTMENT OR THE DEPARTMENT
OF TAXATION AND FINANCE, OR (D) THE FAILURE TO PROVIDE NOTICE TO THE
DEPARTMENT OF TAXATION AND FINANCE OF THE ISSUANCE OR NONISSUANCE OF
CERTIFICATES OF RECEIPT PURSUANT TO SECTION FORTY-FOUR OF THE TAX LAW;
PROVIDED HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSU-
ANT 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 COMMISSIONER 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 COMMISSION-
ER SHALL PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION
FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF
TAXATION AND FINANCE.
§ 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
S. 4366--A 11
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 COMMISSIONER, AND (H) ANY OTHER
INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMISSIONER.
§ 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-FOUR OF THE TAX LAW.
§ 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.
§ 10. The education law is amended by adding a new section 1503-a to
read as follows:
§ 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.
§ 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.
§ 12. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2018.
Comments
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