Senate Bill S9494

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9494
 
                             I N  S E N A T E
 
                              March 18, 2026
                                ___________
 
 Introduced  by  Sen.  CHAN  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to directing  the  commissioner
   of  taxation  and finance to help entities elect to participate in the
   federal tax credit for elementary and secondary scholarships

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative intent. This legislation is intended to elect
 participation by the State of New York in the federal Educational Choice
 for Children Act  of  2025.  The  federal  legislation  would  help  all
 students attending public and non-public schools with a household income
 not  higher  than  300% of area gross median income to cover educational
 expenses including: fees,  tutoring,  transportation,  technologies  and
 other  expenses.  Under  the federal law a tax credit of up to $1,700 is
 available for a taxpayer that donates to a scholarship  granting  organ-
 ization,  which  funds would be directed to students in states that have
 opted into the program. Without opting into the program children in  New
 York  would  be  prohibited from receiving such scholarship funds, which
 would otherwise be available to children in other states.
   The legislature pursuant to section 1 of Article III of the  New  York
 State Constitution voluntarily elects that the State of New York partic-
 ipate  in the federal tax credit program established under 26 USC § 25 F
 for taxpayers who make qualified contributions to  scholarship  granting
 organizations  within  this  state and designate the Commissioner of the
 Department of Taxation and Finance to identify such scholarship granting
 organizations located in this state.
   § 2. Section 171 of the tax law is amended by adding a new subdivision
 twenty-ninth to read as follows:
   TWENTY-NINTH.  THE COMMISSIONER SHALL ANNUALLY SUBMIT  TO  THE  UNITED
 STATES SECRETARY OF THE TREASURY AND PUBLISH ON THE DEPARTMENT'S WEBSITE
 A  LIST  OF ALL SCHOLARSHIP GRANTING ORGANIZATIONS LOCATED IN THIS STATE
 THAT MEET THE REQUIREMENTS OF 26 USC § 25F AND ANY REGULATIONS OR APPLI-
 CABLE GUIDANCE ISSUED BY THE UNITED STATES SECRETARY OF THE TREASURY  TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15100-01-6
 S. 9494                             2
 
 ENSURE  ELIGIBILITY  TO  PARTICIPATE  BEGINNING  IN  TAXABLE YEARS AFTER
 DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-SIX. THE  COMMISSIONER  SHALL
 ESTABLISH  RULES  OR  REGULATIONS NECESSARY FOR AN ENTITY TO DEMONSTRATE
 THAT  IT QUALIFIES AS A SCHOLARSHIP GRANTING ORGANIZATION PURSUANT TO 26
 USC § 25F. THE COMMISSIONER SHALL INFORM THE PUBLIC OF THIS  SCHOLARSHIP
 GRANTING PROGRAM AND THE BENEFITS OF SUCH PROGRAM.
   § 3. This act shall take effect immediately.