Senate Bill S8005

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8005
 
                             I N  S E N A T E
 
                               March 9, 2020
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law 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  45  to  read  as
 follows:
   §  45.  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
 THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS  MADE  DURING  THE
 TAXABLE YEAR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15002-01-0

 S. 8005                             2

   (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
 OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR
 APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED

 S. 8005                             3
 
 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
 EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE

 S. 8005                             4

 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. 8005                             5
 
   (H) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
 AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
 TWO  THOUSAND  TWENTY-ONE SHALL BE ONE HUNDRED FIFTY MILLION DOLLARS. IN
 CALENDAR YEAR TWO THOUSAND  TWENTY-TWO  THE  MAXIMUM  PERMITTED  CREDITS
 UNDER THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWEN-
 TY-FIVE  MILLION  DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED
 TO THE CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION.    FOR  CALENDAR
 YEAR  TWO  THOUSAND  TWENTY-THREE 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 ALLOCATED FIFTY PERCENT TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVE-
 MENT 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 55;

 S. 8005                             6
 
   2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (KKK).
   §  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
 amended by adding a new subparagraph 26 to read as follows:
   (26) 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-FIVE 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 55 to read as follows:
   55. EDUCATION AFFORDABILITY TAX CREDIT. (A)  ALLOWANCE  OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FORTY-FIVE OF THIS CHAPTER, AGAINST  THE  TAX  IMPOSED  BY  THIS
 ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO  LESS
 THAN  THE  HIGHER  OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) OR (D) OF
 SUBDIVISION ONE OF 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 (xlvi) to read as
 follows:
 (XLVI) EDUCATION AFFORDABILITY       AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION (KKK)    SUBDIVISION FIFTY-FIVE 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 TWENTY-ONE, 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) SPOUSES 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  TWENTY-ONE,  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. 8005                             7

   (2) SPOUSES 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
 (kkk) to read as follows:
   (KKK)  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 10 to read as follows:
   (10) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR  CONTRIBUTIONS  MADE  FOR
 WHICH  A  TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (KKK) OF SECTION SIX
 HUNDRED SIX OF THIS ARTICLE.
   § 9. Section 606 of the tax law is amended by adding a new  subsection
 (lll) to read as follows:
   (LLL)  HELPING  OPEN OPPORTUNITIES TO LEARN TAX CREDIT. (1) GENERAL. A
 RESIDENT LOW AND MIDDLE INCOME TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
 COMPUTED AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST  THE
 TAX  IMPOSED  BY  THIS  ARTICLE  FOR  THE QUALIFIED PRIMARY OR SECONDARY
 EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "RESIDENT  LOW  AND MIDDLE INCOME TAXPAYER" SHALL MEAN A TAXPAYER
 WHO IS A FULL-YEAR RESIDENT OF THIS  STATE  AND  WHOSE  FEDERAL  TAXABLE
 INCOME  IS  EQUAL  TO  OR  LESS THAN SEVEN HUNDRED TWENTY PERCENT OF THE
 FEDERAL POVERTY GUIDELINES, AS PROMULGATED ANNUALLY BY THE UNITED STATES
 DEPARTMENT OF HEALTH AND HUMAN SERVICES, FOR THE TAXABLE YEAR FOR  WHICH
 THIS CREDIT IS CLAIMED.
   (B)  "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" SHALL
 MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF AN  ELIGI-
 BLE  STUDENT AT A QUALIFIED SCHOOL, AS DEFINED IN SECTION FORTY-THREE OF
 THIS CHAPTER. PROVIDED, HOWEVER, THAT ANY TUITION PAYMENTS MADE FOR SUCH
 ELIGIBLE STUDENT PURSUANT TO THE RECEIPT OF FINANCIAL AID OR ONE OR MORE
 SCHOLARSHIPS SHALL BE EXCLUDED FROM THE DEFINITION OF THE  TERM  "QUALI-
 FIED  PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" FOR SUCH ELIGIBLE
 STUDENT.
   (C) "ELIGIBLE STUDENT" SHALL MEAN ANY DEPENDENT OF THE  TAXPAYER  WITH
 RESPECT  TO  WHOM THE TAXPAYER IS ALLOWED AN EXEMPTION UNDER SECTION SIX
 HUNDRED SIXTEEN OF THIS ARTICLE FOR THE TAXABLE YEAR WHO IS ENROLLED IN,
 AND FOR WHOM QUALIFIED PRIMARY AND SECONDARY EDUCATION TUITION  EXPENSES
 HAVE BEEN PAID FOR, KINDERGARTEN OR GRADE ONE THROUGH TWELVE IN A QUALI-
 FIED SCHOOL.
   (3)  AMOUNT  OF  CREDIT.  THE AMOUNT OF CREDIT THAT A RESIDENT LOW AND
 MIDDLE INCOME TAXPAYER MAY CLAIM FOR THE QUALIFIED PRIMARY OR  SECONDARY
 EDUCATION  TUITION  EXPENSES  PAID FOR EACH ELIGIBLE STUDENT SHALL EQUAL
 THE LESSER OF TWELVE PERCENT OF THE TOTAL PER PUPIL STATE PUBLIC  SCHOOL

 S. 8005                             8
 
 EXPENDITURES  OR  FIFTEEN  PERCENT OF THE QUALIFIED PRIMARY OR SECONDARY
 EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE  YEAR
 FOR  SUCH  ELIGIBLE  STUDENT. THE TOTAL STATE PUBLIC SCHOOL EXPENDITURES
 SHALL  EQUAL  THE  SCHOOL  AID,  AS REPORTED IN THE STATE ENACTED BUDGET
 FINANCIAL PLAN FOR THE TAXABLE YEAR IN  WHICH  THE  SCHOOL  YEAR  BEGAN,
 DIVIDED  BY  THE  TOTAL  NUMBER OF STUDENTS ENROLLED IN KINDERGARTEN AND
 GRADES ONE THROUGH TWELVE AT PUBLIC SCHOOLS IN THIS STATE  AS  PUBLISHED
 BY THE DEPARTMENT OF EDUCATION FOR SUCH TAXABLE YEAR.
   (4)  APPLICATION  OF CREDIT. 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.
   (5)  SPOUSES.  IN THE CASE OF SPOUSES WHO FILE A JOINT FEDERAL RETURN,
 BUT WHO ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES  SEPARATELY,  THE
 CREDIT  ALLOWED  PURSUANT  TO THIS SUBSECTION MAY BE APPLIED AGAINST THE
 TAX IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
   § 10. 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-
 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

 S. 8005                             9
 
 (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
 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.

 S. 8005                            10
 
   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
 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

 S. 8005                            11
 
 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
 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

 S. 8005                            12
 
 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.
   §  11.  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.
   §  12.  Severability. If any provision of this section or the applica-
 tion thereof to any person or circumstances is held invalid, such  inva-
 lidity  shall not affect other provisions or applications of the section
 which can be given effect without the invalid provision or  application,
 and to this end the provisions of this section are declared to be sever-
 able.
   §  13. This act shall take effect immediately and shall apply to taxa-
 ble years beginning after December 31, 2020.