NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5081C
SPONSOR: Cusick (MS) TITLE OF BILL: An act to amend the tax law, in relation to enacting
the "education investment incentives act"
PURPOSE OR GENERAL IDEA OF BILL: This bill would authorize a tax cred-
it up to seventy-five percent of either personal income tax liability or
corporate franchise tax liability for donations to public education
entities, local education funds, and educational scholarship organiza-
tions, or up to $75 for certain expenses incurred by school personnel
and parents who educate their children at home.
SUMMARY OF SPECIFIC PROVISIONS:
Section 3 amends section 606 of the tax law for the purposes of receiv-
ing voluntary cash contribution by defining "public education entity";
as any public school district; an individual public school, but not
including a charter school; a nonprofit organization for the purpose of
providing programming for performing arts, visual arts, civic instruc-
tion, pre-kindergarten instruction, or any other educational purpose
within such schools; a nonprofit organization that allows donors to
choose school projects for charitable support that are identified by
teachers or other school personnel; and the university of the state of
New York research fund.
"Local education fund" is defined as a charitable organization in this
state that is exempt from federal taxation under section 501(0)(3) of
the Internal Revenue Code and is established for the explicit purpose of
supporting at least one public school, or a specific public school
district.
"Educational scholarship organization" is defined as a charitable organ-
ization in this state that is exempt from federal taxation under section
501(c)(3) of the internal Revenue Code, that allocates at least ninety
percent of its donations for educational scholarships.
Section 3 limits the amount of the tax credit to seventy-five percent of
the taxpayer's tax liability, and also provides for a tax credit for up
to $75 for the purchase of instructional materials and classroom
supplies for schools by school personnel, or for non-public home-based
instruction.
Section 4 amends section 210 of the tax law by defining for the purposes
of receiving voluntary cash contributions, "public education entity",
"local education fund", and "educational scholarship organization".
Section 5 requires approval of tax credits on a first-come, first-served
basis and provides that no taxpayer may apply for a credit in excess of
5% of $125 million for tax year 2013, and in excess of 5% of $150
million for tax years thereafter.
Further, section 5 disallows the portion of the credit equal to the
amount saved from the federal tax liability given a taxpayer's donation
to an IRS recognized 501(c)(3) charitable organization.
Section 5 also provides that fifty percent of the available credits be
afforded to taxpayers donating to public education entities, local
education funds, and for the purchase by school personnel for classroom
instructional material and supplies, and that fifty percent be afforded
to educational scholarship organizations and for home-based instruc-
tional materials. Section 6 imposes reporting requirements of the tax
credits from the department of taxation and finance to the governor,
temporary president of the senate, speaker of the assembly, and chairs
of the senate finance, and assembly ways and means committees.
Section 7 restricts the commissioners of education and taxation &
finance from imposing additional regulations on educational programs in
receipt of funding from educational scholarship organizations.
Section 8 provides that this act shall take effect immediately.
JUSTIFICATION: At a time when the state is considering ways of reduc-
ing the tax burden for New York State residents and educators are seek-
ing an expansion of financial resources, charitable giving for educa-
tional purposes should be stimulated. Permitting public education
entities such as school districts and individual public 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. Permitting
school personnel to claim a credit for the purchase of classroom
instructional materials and supplies will insure a wider availability of
such materials and supplies for all students.
PRIOR LEGISLATIVE HISTORY: 2012: A.5081 Referred to Ways and Means,
S.2732 Referred to Investigations & Government Operations 2011: Died in
Assembly, Passed Senate 2009-10: Similar to A.10862 - Died in Ways and
Means Similar to S.5146 - Died in Finance
FISCAL IMPLICATIONS: The Department of Taxation & Finance has yet to
project a first-year revenue reduction. However, the total tax credit
available is capped at $250 million for the 2013 tax year. The total
available credit increases to $300 million in 2014 tax year, and annual-
ly thereafter.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5081--C
2011-2012 Regular Sessions
IN ASSEMBLY
February 11, 2011
___________
Introduced by M. of A. CUSICK, THIELE, MARKEY, RAIA, MALLIOTAKIS,
JAFFEE, LAVINE, ESPINAL, ROBINSON, GOLDFEDER, SIMANOWITZ, SCARBOROUGH,
ROBERTS, BROOK-KRASNY, BENEDETTO, CAMARA, KEARNS -- Multi-Sponsored by
-- M. of A. BOYLAND, CORWIN, CRESPO, CURRAN, CYMBROWITZ, ENGLEBRIGHT,
FINCH, GABRYSZAK, GIBSON, HIKIND, JACOBS, KOLB, LANCMAN, LATIMER,
LENTOL, McENENY, PALMESANO, P. RIVERA, SCHIMEL, SCHIMMINGER, TITONE,
WEINSTEIN, WEISENBERG -- read once and referred to the Committee on
Higher Education -- reference changed to the Committee on Ways and
Means -- recommitted to the Committee on Ways and Means in accordance
with Assembly Rule 3, sec. 2 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee -- again reported from
said committee with amendments, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the tax law, in relation to enacting the "education
investment incentives act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "education investment incentives act".
3 § 2. Legislative findings and intent. The legislature hereby finds and
4 declares that:
5 a. At a time when the state is considering ways of reducing the tax
6 burden for New York state residents and educators are seeking an expan-
7 sion of financial resources, charitable giving for educational purposes
8 should be stimulated;
9 b. Permitting public education entities such as school districts and
10 individual public schools to accept and receive voluntary cash contrib-
11 utions will lessen the need for additional tax revenue;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05643-15-2
A. 5081--C 2
1 c. Encouraging voluntary support for education, without prejudice for
2 or against any state-sanctioned educational enterprise, promotes the
3 state's interest in providing the highest quality education to all chil-
4 dren in the state;
5 d. Requiring a sharing of resources among school districts will insure
6 a more equitable distribution of financial support;
7 e. The tax credit provided in this act is merely one of many credits
8 available to New York taxpayers;
9 f. The intended beneficiaries of the tax credit provided in this act
10 are the students who attend public schools, or who further their
11 educations using tuition scholarships from educational scholarship
12 organizations, or who participate in home-based educational programs;
13 therefore the tax credit does not constitute public aid to non-public
14 sectarian institutions;
15 g. Permitting school personnel to claim a credit for the purchase of
16 classroom instructional materials and supplies will insure a wider
17 availability of such materials and supplies for all students.
18 § 3. Section 606 of the tax law is amended by adding six new
19 subsections (u), (v), (w), (w-1), (w-2) and (w-3) to read as follows:
20 (u) Definitions. As used in subsections (v), (w), (w-1), (w-2) and
21 (w-3) of this section, the following terms shall have the following
22 meanings:
23 (1) "Public education entity" shall mean any public school district or
24 any individual public school, but shall not include any charter school;
25 a nonprofit organization for the purpose of providing programming for
26 performing arts, visual arts, civic instruction, pre-kindergarten
27 instruction, or any other educational purpose within such schools; a
28 nonprofit organization that allows donors to choose school projects for
29 charitable support that are identified by teachers or other school
30 personnel; and the university of the state of New York research fund.
31 (2) "Local education fund" shall mean a charitable organization in
32 this state that:
33 (A) is exempt from federal taxation under section 501 (c)(3) of the
34 internal revenue code; and
35 (B) is established for the explicit purpose of supporting public
36 education within a specific public school district.
37 (3) "Educational scholarship organization" shall mean a charitable
38 organization in this state that:
39 (A) is exempt from federal taxation under section 501 (c)(3) of the
40 internal revenue code;
41 (B) allocates at least ninety percent of donations for which tax cred-
42 its are claimed under subsection (w-3) of this section for educational
43 scholarships;
44 (C) makes educational scholarships or tuition grants available to
45 children from more than one public or eligible non-public school; and
46 (D) reports annually to the department the gross receipts and gross
47 amount expended for scholarships and tuition grants.
48 (4) "Eligible non-public school" shall mean an independent sectarian
49 or non-sectarian primary or secondary school or pre-kindergarten program
50 that is located in this state, that satisfies the requirements
51 prescribed by applicable law for such schools in this state, and that
52 has qualified for federal tax exemption under section 501 (c)(3) of the
53 internal revenue code.
54 (5) "Authorized certificate of receipt" shall mean a certificate
55 designed by the commissioner for the purpose of acknowledging receipt of
A. 5081--C 3
1 a charitable contribution by the chief executive officer of an educa-
2 tional scholarship organization.
3 (6) "Eligible pupil" shall mean a pupil who is a resident of the state
4 of New York and of age to attend school in accordance with subdivision
5 one of section thirty-two hundred two of the education law or who is
6 four years of age on or before December first of the year in which they
7 are enrolled in a pre-kindergarten program.
8 (v) Contributions to public education credit. For taxable years begin-
9 ning on or after January first, two thousand thirteen, a credit is
10 allowed for voluntary cash contributions made by the taxpayer during the
11 taxable year to a public education entity. Acceptance and receipt of all
12 such contributions shall be permitted. A taxpayer who submits with his
13 or her tax return an authorized certificate of receipt shall be allowed
14 a credit, to be computed as hereinafter provided, against the tax
15 imposed by this article.
16 (1) The amount of such credit shall be valued at one hundred percent
17 of the amount of such contributions in any taxable year, not to exceed
18 seventy-five percent of the tax due from the taxpayer under this article
19 in the taxable year, after application of any other allowable credits by
20 the taxpayer.
21 A shareholder of a New York S corporation or a partner of a partner-
22 ship (or other entity treated as a partnership for income tax purposes)
23 shall be treated as the taxpayer with respect to his or her pro-rata
24 share of the tax credit allowable to such S corporation or partnership,
25 determined for the S corporation's or partnership's taxable year ending
26 with or within the shareholder's or partner's taxable year. The maximum
27 amount of the credit for such S corporation or partnership shall be the
28 same as that allowable to corporations under subdivisions forty-six,
29 forty-seven and forty-eight of section two hundred ten of this chapter.
30 (2) A husband and wife who file separate returns for a taxable year in
31 which they could have filed a joint return may each claim only one-half
32 of the tax credit that would have been allowed for a joint return.
33 (3) If the allowable tax credit exceeds seventy-five percent of the
34 taxes otherwise due under this article on the taxpayer's income, or if
35 there are no taxes due under this article, the taxpayer may carry the
36 amount of the credit not used to offset the taxes under this article
37 forward for not more than five years' income tax liability.
38 (4) Contributions in any taxable year that receive a credit pursuant
39 to this subsection shall not be considered eligible deductions as
40 allowed under this article for charitable contributions. Contributions
41 in excess of seventy-five percent of a taxpayer's tax liability in any
42 taxable year that do not receive a tax credit shall be considered eligi-
43 ble deductions as allowed under this article for charitable contrib-
44 utions.
45 (5) Such contributions shall be deposited in a separate account.
46 (6) If made to a public school district such contributions shall be
47 supervised by a person so designated by the chancellor or superinten-
48 dent. If made to a particular school they shall be supervised by the
49 school principal. Reports of deposits and disbursements shall be made to
50 the local board of education annually.
51 (w) Contributions to local education fund credit. In lieu of contrib-
52 utions in subsection (v) of this section, a credit is allowed for taxa-
53 ble years beginning on or after January first, two thousand thirteen for
54 the amount of voluntary cash contributions made by the taxpayer during
55 the taxable year to a local education fund. A taxpayer who submits with
56 his or her tax return an authorized certificate of receipt shall be
A. 5081--C 4
1 allowed a credit, to be computed as hereinafter provided, against the
2 tax imposed by this article.
3 (1) The amount of such credit shall be valued at one hundred percent
4 of the amount of such contributions in any taxable year, not to exceed
5 seventy-five percent of the tax due from the taxpayer under this article
6 in the taxable year, after application of any other allowable credits by
7 the taxpayer. A shareholder of a New York S corporation or a partner of
8 a partnership (or other entity treated as a partnership for income tax
9 purposes) shall be treated as the taxpayer with respect to his or her
10 pro-rata share of the tax credit allowable to such S corporation or
11 partnership, determined for the S corporation's or partnership's taxable
12 year ending with or within the shareholder's or partner's taxable year.
13 The maximum amount of the credit for such S corporation or partnership
14 shall be the same as that allowable to corporations under subdivisions
15 forty-six, forty-seven and forty-eight of section two hundred ten of
16 this chapter.
17 (2) A husband and wife who file separate returns for a taxable year in
18 which they could have filed a joint return may each claim only one-half
19 of the tax credit that would have been allowed for a joint return.
20 (3) If the allowable tax credit exceeds seventy-five percent of the
21 taxes otherwise due under this article on the taxpayer's income, or if
22 there are taxes due under this article, the taxpayer may carry the
23 amount of the credit not used to offset the taxes under this article
24 forward for not more than five years' income tax liability.
25 (4) Contributions in any taxable year that receive a credit pursuant
26 to this subsection shall be considered eligible deductions as allowed
27 under this article for charitable contributions. Contributions in excess
28 of seventy-five percent of a taxpayers' tax liability in any taxable
29 year that do not receive a tax credit shall be considered eligible
30 deductions as allowed under this article for charitable contributions.
31 (5) This tax credit may not be claimed for any contribution to a local
32 education fund for the benefit of a designated student.
33 (w-1) Home-based instructional materials credit. In lieu of contrib-
34 utions in subsections (v) and (w) of this section, a credit is allowed
35 for taxable years beginning on or after January first, two thousand
36 thirteen for the purchase of instructional materials for non-public
37 home-based educational programs. This credit shall be valued at one
38 hundred percent of such purchases.
39 (1) The amount of such credit shall not exceed seventy-five dollars in
40 any taxable year.
41 (2) A husband and wife who file separate returns for a taxable year in
42 which they could have filed a joint return may each claim only one-half
43 of the tax credit that would have been allowed for a joint return.
44 (3) If the allowable tax credit exceeds the taxes otherwise due under
45 this article on the taxpayer's income, or if there are no taxes due
46 under this article, the taxpayer may carry the amount of the credit not
47 used to offset the taxes under this article forward for not more than
48 five years' income tax liability.
49 (4) If the taxpayer shall be responsible for notifying the commission-
50 er of the intention to claim the allowable credit, no later than Decem-
51 ber thirty-first.
52 (w-2) Classroom instructional materials and supplies credit. For taxa-
53 ble years beginning on or after January first, two thousand thirteen, a
54 credit is allowed for the personnel employed in any public school, or in
55 any eligible non-public school for the purchase of classroom instruc-
56 tional materials and supplies.
A. 5081--C 5
1 (1) The amount of such credit shall not exceed seventy-five dollars in
2 any taxable year.
3 (2) The taxpayer shall be responsible for notifying the commissioner
4 of the intention to claim the allowable credit, no later than December
5 thirty-first, indicating whether the purchase was made for use in a
6 public school, or an eligible non-public school.
7 (w-3) Contributions to educational scholarship organization credit.
8 For taxable years beginning on or after January first, two thousand
9 thirteen, a credit is allowed for the amount of voluntary cash contrib-
10 utions made by the taxpayer during the taxable year to an educational
11 scholarship organization. A taxpayer who submits with his or her tax
12 return an authorized certificate of receipt shall be allowed a credit,
13 to be computed as hereinafter provided, against the tax imposed by this
14 article.
15 (1) The amount of such credit shall be valued at one hundred percent
16 of the amount of such contributions in any taxable year, not to exceed
17 seventy-five percent of the tax due from the taxpayer under this article
18 in the taxable year, after application of any other allowable credits by
19 the taxpayer. A shareholder of a New York S corporation or a partner of
20 a partnership (or other entity treated as a partnership for income tax
21 purposes) shall be treated as the taxpayer with respect to his or her
22 pro-rata share of the tax credit allowable to such S corporation or
23 partnership, determined for the S corporation's or partnership's taxable
24 year ending with or within the shareholder's or partner's taxable year.
25 The maximum amount of the credit for such S corporation or partnership
26 shall be the same as that allowable to corporations under subdivisions
27 forty-six, forty-seven and forty-eight of section two hundred ten of
28 this chapter.
29 (2) A husband and wife who file separate returns for a taxable year in
30 which they could have filed a joint return may each claim only one-half
31 of the tax credit that would have been allowed for a joint return.
32 (3) If the allowable tax credit exceeds seventy-five percent of the
33 taxes otherwise due under this article on the taxpayer's income, or if
34 there are no taxes due under this article, the taxpayer may carry the
35 amount of credit not used to offset the taxes under this article forward
36 for not more than five years' income tax liability.
37 (4) Contributions in any taxable year that receive a credit pursuant
38 to this subsection shall not be considered eligible deductions as
39 allowed under this article for charitable contributions. Contributions
40 in excess of seventy-five percent of a taxpayers' tax liability in any
41 taxable year that do not receive a tax credit shall be considered eligi-
42 ble deductions as allowed under this article for charitable contrib-
43 utions.
44 (5) This tax credit may not be claimed for any contribution to an
45 educational scholarship organization for the benefit of a designated
46 pupil.
47 (6) Scholarship amount.
48 (A) An education scholarship organization may award a scholarship to a
49 non-district resident eligible pupil attending a public school operated
50 by a school district in an amount not to exceed the tuition charged by
51 the participating public school pursuant to paragraph d of subdivision
52 four of section thirty-two hundred two of the education law, provided,
53 however that a scholarship shall not be available in any case where the
54 resident district of such pupil is liable for such tuition.
55 (B) An education scholarship organization may award an eligible schol-
56 arship to a pupil enrolled in a public school, including a charter
A. 5081--C 6
1 school, or a non-public school in an amount not to exceed the tuition
2 amount of the eligible non-public school, provided, however, that the
3 total amount of such tax credits shall not exceed the amount of avail-
4 able tax credits for educational scholarship organizations set forth in
5 paragraph six of subdivision twenty-ninth of section one hundred seven-
6 ty-one of this chapter.
7 § 4. Section 210 of the tax law is amended by adding four new subdivi-
8 sions 45, 46, 47 and 48 to read as follows:
9 45. Definitions. As used in subdivisions forty-six, forty-seven and
10 forty-eight of this section the following terms shall have the following
11 meanings:
12 (a) "Public education entity" shall mean any public school district or
13 any individual public school, but shall not include any charter school;
14 a nonprofit organization for the purpose of providing programming for
15 performing arts, visual arts, civic instruction, pre-kindergarten
16 instruction, or any other educational purpose within such schools; a
17 nonprofit organization that allows donors to choose school projects for
18 charitable support that are identified by teachers or other school
19 personnel; and the university of the state of New York research fund.
20 (b) "Local education fund" shall mean a charitable organization in
21 this state that:
22 (1) is exempt from federal taxation under section 501(c) (3) of the
23 internal revenue code; and
24 (2) is established for the explicit purpose of supporting public
25 education within a specific public school district.
26 (c) "Educational scholarship organization" shall mean a charitable
27 organization in this state that:
28 (1) is exempt from federal taxation under section 501(c)(3) of the
29 internal revenue code;
30 (2) allocates at least ninety percent of donations for which credits
31 are claimed under subdivision forty-eight of this section for educa-
32 tional scholarships;
33 (3) makes educational scholarships or tuition grants available to
34 children from more than one public or eligible non-public school; and
35 (4) reports annually to the department the gross receipts and gross
36 amount expended for scholarships and tuition grants.
37 (d) "Eligible non-public school" shall mean an independent sectarian
38 or non-sectarian primary or secondary school or pre-kindergarten program
39 that is located in this state, that satisfies the requirements
40 prescribed by applicable law for such schools in this state, and that
41 has qualified for federal tax exemption under section 501(c)(3) of the
42 internal revenue code.
43 (e) "Authorized certificate of receipt" shall mean a certificate
44 designed by the commissioner for the purpose of acknowledging receipt of
45 a charitable contribution by the chief executive officer of a public
46 education entity, or of a local education fund or of an educational
47 scholarship organization.
48 (f) "Eligible pupil" shall mean a pupil who is a resident of the state
49 of New York and of age to attend school in accordance with subdivision
50 one of section thirty-two hundred two of the education law or who is
51 four years of age on or before December first of the year in which they
52 are enrolled in a pre-kindergarten program.
53 46. Contributions to public education credit. (a) For taxable years
54 beginning on or after January first, two thousand thirteen, a credit is
55 allowed for the amount of voluntary cash contributions made by the
56 taxpayer during the taxable year to a public education entity. Accept-
A. 5081--C 7
1 ance and receipt of all such contributions shall be permitted. A taxpay-
2 er who submits with his or her tax return an authorized certificate of
3 receipt shall be allowed a credit, to be computed as hereinafter
4 provided, against the tax imposed by this article. The amount of such
5 credit shall be valued at one hundred percent of the amount of such
6 contributions in any taxable year, not to exceed seventy-five percent of
7 the tax due from the taxpayer under this article in the taxable year,
8 after application of any other allowable credits by the taxpayer.
9 (b) Such contributions shall be deposited in a separate account.
10 (c) If made to a public school district such contributions shall be
11 supervised by a person so designated by the chancellor or superinten-
12 dent. If made to a particular school they shall be supervised by the
13 school principal. Reports of deposits and disbursements shall be made to
14 the local board of education annually.
15 47. Contributions to local education fund credit. (a) For taxable
16 years beginning on or after January first, two thousand thirteen, a
17 credit is allowed for the amount of voluntary cash contributions made by
18 the taxpayer during the taxable year to a local education fund. A
19 taxpayer who submits with his or her tax return an authorized certif-
20 icate of receipt shall be allowed a credit, to be computed as hereinaft-
21 er provided, against the tax imposed by this article.
22 (b) The amount of such credit shall be valued at one hundred percent
23 of the amount of such contributions in any taxable year, not to exceed
24 seventy-five percent of the tax due from the taxpayer under this article
25 in the taxable year, after application of any other allowable credits by
26 the taxpayer.
27 (c) This tax credit may not be claimed for any contribution to a local
28 education fund for the benefit of a designated student.
29 48. Contributions to educational scholarship organization credit. A
30 credit is allowed for the amount of voluntary cash contributions made by
31 the taxpayer during the taxable year to an educational scholarship
32 organization. A taxpayer who submits with his or her tax return an
33 authorized certificate of receipt shall be allowed a credit, to be
34 computed as hereinafter provided, against the tax imposed by this arti-
35 cle.
36 (a) The amount of such credit shall be valued at one hundred percent
37 of such contributions in any taxable year, not to exceed seventy-five
38 percent of the tax due from the taxpayer under this article in the taxa-
39 ble year, after application of any other allowable credits by the
40 taxpayer.
41 (b) This tax credit may not be claimed for any contribution to an
42 educational scholarship organization for the benefit of a designated
43 pupil.
44 (c) Scholarship amount. (1) An education scholarship organization may
45 award a scholarship to a non-district resident eligible pupil attending
46 a public school operated by a school district in an amount not to exceed
47 the tuition charged by the participating public school pursuant to para-
48 graph d of subdivision four of section thirty-two hundred two of the
49 education law; provided, however that a scholarship shall not be avail-
50 able in any case where the resident district of such pupil is liable for
51 such tuition.
52 (2) An education scholarship organization may award a scholarship to a
53 pupil enrolled in a public school, or an eligible non-public school in
54 an amount not to exceed the tuition amount of the eligible non-public
55 school, provided, however, that the total amount of such tax credits
56 shall not exceed the amount of available tax credits for educational
A. 5081--C 8
1 scholarship organizations set forth in paragraph six of subdivision
2 twenty-ninth of section one hundred seventy-one of this chapter.
3 § 5. Section 171 of the tax law is amended by adding a new subdivision
4 twenty-ninth to read as follows:
5 Twenty-ninth. For the purpose of implementing the provisions of
6 subsections (u), (v), (w), (w-1), (w-2) and (w-3) of section six hundred
7 six and subdivisions forty-five, forty-six, forty-seven and forty-eight
8 of section two hundred ten of this chapter the commissioner shall:
9 (1) Maintain a list of public school districts, individual public
10 schools, local education funds, and educational scholarship organiza-
11 tions; and
12 (2) Approve tax credits on a first-come, first-serve basis from each
13 taxpayer who submits to the department an application prepared by the
14 commissioner wherein the taxpayer shall specify each tax for which the
15 taxpayer requests a credit and the applicable taxable year for a credit,
16 subject to the limits set forth in paragraph six of this subdivision;
17 and
18 (3) Upon notification by the chief executive officer of any education
19 entity so listed that a contribution has been received, such notifica-
20 tion being within one business day of said receipt, record the amount
21 and date of the contribution, the name and address of the contributor;
22 and
23 (4) Upon notification that a credit for the purchase of instructional
24 materials for non-public home-based educational programs, record the
25 amount and date of the notification, the name and address of the claim-
26 ant; and
27 (5) Upon notification that a credit for the purchase of the classroom
28 instructional materials and supplies for use in a public school, or an
29 eligible non-public school, record the amount and date of the notifica-
30 tion and the name and address of the claimant; and
31 (6) Make no more than two hundred fifty million dollars in credits
32 available in any single tax year, provided that fifty percent of such
33 credits shall be afforded to taxpayers who make donations to public
34 education entities and local education funds, and for the purchase by
35 school personnel, of classroom instructional materials and supplies, and
36 that fifty percent of such credits shall be afforded to education schol-
37 arship organizations and for home-based instructional materials,
38 provided further, that beginning in tax year two thousand fourteen and
39 annually thereafter, make no more than three hundred million dollars in
40 credits available in any single tax year, provided that fifty percent of
41 such credits shall be afforded to taxpayers who make donations to public
42 education entities and local education funds, and for the purchase by
43 school personnel of classroom instructional materials and supplies, and
44 that fifty percent of such credits shall be afforded to educational
45 scholarship organizations and for home-based instructional materials;
46 and
47 (7) Issue to taxpayers all authorized certificates of receipt for all
48 eligible credits no later than January thirty-first for credits claimed
49 for the previous calendar year; and
50 (8) Disallow the portion of the credit equal to the amount saved from
51 the federal tax liability of the taxpayer from the charitable contrib-
52 ution to a qualified organization under section five hundred one (c)(3)
53 of the internal revenue code of the United States.
54 § 6. Excess contributions. Contributions exceeding the allowed annual
55 maximum of the amount set forth in subdivision 29th of section 171 of
56 the tax law to public educational entities, local educational funds and
A. 5081--C 9
1 for the purchase of classroom instructional materials and supplies for
2 use in a public school, or an eligible non-public school; or the allowed
3 annual maximum of the amount set forth in subdivision 29th of section
4 171 of the tax law to education scholarship organizations and for the
5 purchase of home-based instructional materials, shall be applied to the
6 following tax year, and the donor so notified within one business day.
7 § 7. The department of taxation and finance shall prepare a written
8 report before January 31 of each calendar year, which shall contain
9 statistical information regarding the credits allowed pursuant to
10 subsections (u), (v), (w), (w-1), (w-2) and (w-3) of section 606 and
11 subdivisions 45, 46, 47 and 48 of section 210 of the tax law as added by
12 sections three and four of this act, for the previous calendar year.
13 Copies of such report shall be submitted to the governor, the temporary
14 president of the senate, the speaker of the assembly, the chair of the
15 senate finance committee and the chair of the assembly ways and means
16 committee. Such reports shall contain, but need not be limited to, the
17 number of credits by type and the amount of such credits allowed to
18 taxpayers.
19 § 8. This act shall not be construed to authorize the commissioner of
20 education or the commissioner of taxation and finance to impose any
21 regulation or requirement on the educational program, instruction or
22 activities of an eligible non-public school that receives funding on
23 behalf of an eligible pupil from an educational scholarship organization
24 pursuant to this act, unless specifically authorized by this act.
25 § 9. This act shall take effect immediately.
