A01826 Summary:

BILL NO    A01826D

SAME AS    No same as 

SPONSOR    Cusick (MS)

COSPNSR    Thiele, Markey, Malliotakis, Goldfeder, Simanowitz, Brook-Krasny,
           Benedetto, Camara, Kearns, Hevesi, Perry, Barrett, Borelli, Curran,
           Weprin, Rozic, Brindisi, Clark, Skoufis, Rodriguez, Russell,
           DenDekker, Gjonaj, Miller, Skartados, Mosley, Gantt, Kellner,
           Saladino, Palumbo, Fitzpatrick, Arroyo

MLTSPNSR   Aubry, Blankenbush, Braunstein, Butler, Colton, Cook, Corwin, Crespo,
           Crouch, Cymbrowitz, Davila, DiPietro, Farrell, Finch, Garbarino,
           Giglio, Goodell, Hawley, Heastie, Hennessey, Hikind, Katz, Kim, Kolb,
           Lalor, Lentol, Lopez P, Magee, McDonald, McLaughlin, Montesano, Moya,
           Nojay, Oaks, Ortiz, Otis, Palmesano, Peoples-Stokes, Pichardo,
           Pretlow, Ra, Ramos, Rivera, Schimel, Schimminger, Simotas, Stec,
           Sweeney, Tenney, Titone, Titus, Weinstein, Weisenberg, Wright

Add S41, amd SS208, 210, 606, 615, Tax L; add Art 25 SS1209 - 1217, add
S1503-a, Ed L

Establishes the "education investment incentives act"; provides credits against
income and corporate franchise tax for various qualified education investments
including scholarships, education funds and instructional materials.
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A01826 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1826D
 
SPONSOR: Cusick (MS)
  PURPOSE OR GENERAL IDEA OF BILL: This bill would provide incentives in the form of tax credit for donations to public education entities, local education funds, school improvement organizations and educational scholarship organizations, as well as tax credits for certain expenses incurred by qualified educators who purchase materials and supplies for classroom use.   SUMMARY OF SPECIFIC PROVISIONS: Section one of this bill provides the short title, which is the "educa- tion investment incentives act." Section two of this bill provides the legislative findings and intent. Section three of this bill adds new section 41 to the Tax Law, which is the education investment tax credit. New section 41 provides a tax cred- it to individuals and businesses paying the Article 22 personal income tax and to businesses paying the Article 9-A corporate franchise tax for qualified contributions to public education entities, school improvement organizations, local education funds, and educational scholarship organ- izations. Prior to making a contribution, a taxpayer must apply to the Department of Taxation and Finance ("DTF") for a contribution authori- zation certificate, which will list the amount of the authorized contribution and the entity, public school (but shall not Include a charter school) or public school district for which the contribution is authorized. Taxpayers have from the issuance of the contribution author- ization certificate until November 30th to make the contribution to the named entity, public school, or public school district. Upon receipt of a timely authorized contribution, the recipient entity will issue a certificate 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 the authorized contribution will be added to the maximum amount of credit available in the immediately following calendar year. The maximum amount that a taxpayer may list in the application filed with DTF is up to $1 million, which also is the maximum amount of aggre- gate credits that a taxpayer may claim for any year, after the applica- tion of all other allowable credits, in which the tax return is filed, plus any amount carried over from a prior year. A taxpayer can claim as a credit 75 percent of the donation made to an eligible entity. Any amount of qualified contributions in excess of the taxpayer's tax for the taxable year may be carried forward. The credit is capped at $150 million for calendar year 2015, $225 million for calendar year 2016, and $300 million plus any amounts required to be added to the cap due to authorized contributions that were not timely made for each year beginning in calendar year 2017. 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 for donations to educational scholarship organizations. Section three of this bill also provides definitions for terms such as "authorized contribution," "public education entity," "local education fund," and "educational scholarship organization." Section three also provides reporting requirements for public education entities, including school improvement organizations (i.e., a non-profit entity supporting public schools); local education funds; and educa- tional scholarship organizations, as well as a joint report from the Commissioner of Tax and Finance and the Commissioner of Education. The joint report shall Include, among other things, statistics regarding the number of qualified contributions made to each type of recipient the distribution of the recipients by county, and the aggregate amount of credit claimed. Section four of this bill amends Tax Law section 208(9) (b) by adding a new subparagraph (21) to provide that If a taxpayer claims a charitable contribution deduction at the federal level for any amount claimed as a credit pursuant to Tax Law section 210(45), such amount must be added back to the taxpayer's entire net income computation in order to prevent obtaining a state tax deduction and state tax credit from the same donation. Section five of this bill amends Tax Law section 210 to add a new subdi- vision (48) to provide the mechanism for Article 9-A taxpayers to claim the education investment tax credit. Section six of this bill amends Tax law section 606(i)(1)(B) to add a new clause ()cowl') to provide the mechanism for S Corporations to claim the education investment tax credit. Section seven of this bill amends section 606 of the Tax Law to add a new subsection (w) to provide the classroom Instructional materials and supplies credit for people employed at a public or non-public school. The amount of the credit is the lesser of $200 or 100% of the amounts used to purchase Instructional materials and supplies for use in a classroom. Section eight of this bill amends Tax Law section 606 by adding a new subsection (xx) to provide the mechanism for Article 22 taxpayers to claim the education investment tax credit. Section nine of this bill amends Tax Law section 615(c) by adding a new paragraph (9) to provide that if a taxpayer claims a charitable contrib- ution deduction at the federal level for any amount claimed as a credit pursuant to section 606(xx), such amount must be added back to the New York adjusted income computation in order to prevent obtaining a state tax deduction and state tax credit from the same donation. Section ten of this bill amends the Education Law to add a new Article 25, entitled the "Education Investment Tax Credit Program." This new article provides the framework for public education entities, school improvement organizations, local education funds and educational schol- arship organizations to apply for authorization to issue certificates of receipt. Authorized entities receiving tax-credited donations must submit an annual report in a form and manner required by the state Board of Regents. Additionally, any authorization granted may be revoked by the Regents for violations of applicable law. This new article contains the same short title and definitions, as well as the joint report requirement, provided in Tax law section 41, as added by section three of the bill. Section eleven of the this bill adds a new section 1503-a to the educa- tion law to ensure public schools and school districts can accept chari- table donations and that such donations shall be excluded for the purposes of determining state aid to public schools. Section twelve of this bill contains the severability clause. Section thirteen of this bill provides that this act shall take effect immediately and apply to taxable years beginning after December 31, 2014.   EXISTING LAW: This is a 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 encouraged. 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 enterprise. The provisions of this bill ensure against a taxpayer from taking a state tax deduction and this tax credit on the same donation, and guard against a taxpayer having a combined federal and state tax benefit that exceeds the donation level. The bill promotes the state's interest in providing the highest quality education to all children in the state. The tax credit does not consti- tute public aid to non-public sectarian institutions. This bill also will enable children from low-income households in high-needs communi- ties to continue with their education in non-public schools and mitigate the trend of private school closures, particularly in such areas, the result of which has added costs to public education, and contributed to higher property tax burdens and overcrowded classrooms in the state. Permitting school personnel to claim a credit for the purchase of class- room Instructional materials and supplies will insure a wider availabil- ity of such materials and supplies for all students.   PRIOR LEGISLATIVE HISTORY: 2011-12: A.5081-C, Ways and Means Committee.   FISCAL IMPLICATIONS: $150 million for calendar year 2015, $225 million for calendar year 2016, and $300 million for calendar year 2017 and annually thereafter. This bill would generate $333 million In voluntary contributions to support K-12 education in New York State based on the credit equaling 90 percent of the charitable donation. Stabilizing the independent and religious school sector will significantly lessen the need for local school property tax increases as well as for the issuance of bonds for new public school construction, generating further savings for the state. In addition, another $50 million is projected to be forgone revenue from the instructional and materials supply credit for teachers and instructional personnel.   EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning after December 31, 2014.
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A01826 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1826--D
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced  by  M.  of  A.  CUSICK, THIELE, MARKEY, MALLIOTAKIS, LAVINE,
          GOLDFEDER, SIMANOWITZ, BROOK-KRASNY, BENEDETTO, CAMARA, KEARNS,  HEVE-
          SI,  PERRY,  BARRETT, BORELLI, CURRAN, WEPRIN, ROZIC, BRINDISI, CLARK,
          SKOUFIS, RODRIGUEZ, RUSSELL,  DenDEKKER,  GJONAJ,  MILLER,  SKARTADOS,

          MOSLEY,  GANTT, KELLNER, SALADINO, PALUMBO, FITZPATRICK -- Multi-Spon-
          sored by -- M. of A. ARROYO, AUBRY, BLANKENBUSH,  BRAUNSTEIN,  BUTLER,
          COLTON,  COOK,  CORWIN,  CRESPO, CROUCH, CYMBROWITZ, DAVILA, DiPIETRO,
          FARRELL, FINCH, GARBARINO, GIGLIO,  GOODELL,  GRAF,  HAWLEY,  HEASTIE,
          HENNESSEY,  HIKIND,  HOOPER,  JACOBS,  KATZ, KIM, KOLB, LALOR, LENTOL,
          P. LOPEZ, MAGEE, McDONALD, McLAUGHLIN, MONTESANO, MOYA,  NOJAY,  OAKS,
          ORTIZ,  OTIS, PALMESANO, PEOPLES-STOKES, PICHARDO, PRETLOW, RA, RAMOS,
          RIVERA, ROSA, SCHIMEL, SCHIMMINGER, SIMOTAS, SOLAGES,  STEC,  SWEENEY,
          TENNEY,  TITONE,  TITUS, WALTER, WEINSTEIN, WEISENBERG, WRIGHT -- read
          once and referred to the Committee on  Ways  and  Means  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  -- again reported from said committee with amend-

          ments, ordered reprinted as amended and recommitted to said  committee
          --  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
 
        AN ACT to amend the tax law and the education law, in relation to enact-
          ing the "education investment incentives act"
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     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:
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00834-30-4

        A. 1826--D                          2
 
     1    a. The education of the children of this state is one of  the  founda-
     2  tions  of  a  strong  society  that  requires an academically robust and
     3  financially sound school system, both public and non-public;
     4    b.  At  a  time when the state is considering ways of reducing the tax
     5  burden for New York state residents and educators are seeking an  expan-
     6  sion  of financial resources, charitable giving for educational purposes
     7  should be encouraged;
     8    c. Permitting public education entities such as school  districts  and

     9  individual  public schools to accept and receive voluntary cash contrib-
    10  utions will be beneficial to taxpayers and educators;
    11    d. Encouraging voluntary support for education, without prejudice  for
    12  or  against  any  state-sanctioned  educational enterprise, promotes the
    13  state's interest in providing the highest quality education to all chil-
    14  dren in the state;
    15    e. The tax credit provided in this act is merely one of  many  credits
    16  available to New York taxpayers;
    17    f.  The intended beneficiaries of the tax credits provided in this act
    18  are the students who attend public schools, students who  further  their
    19  educations  using  tuition  scholarships  from  educational  scholarship
    20  organizations, and teachers who purchase with personal funds  to  supply
    21  their  students  and  classrooms,  and who seek charitable donations for
    22  classroom projects and initiatives;

    23    g. Permitting educators to claim a credit for the purchase  of  class-
    24  room instructional materials and supplies will insure a wider availabil-
    25  ity of such materials and supplies for all students.
    26    §  3.    The  tax law is amended by adding a new section 41 to read as
    27  follows:
    28    § 41. Education investment tax  credit.    (a)  Definitions.  For  the
    29  purposes  of  this section, the following terms shall have the following
    30  meanings:
    31    1. "Authorized contribution" means the  contribution  amount  that  is
    32  listed  on  the  contribution  authorization  certificate  issued to the
    33  taxpayer.
    34    2. "Contribution" means a donation paid  by  cash,  check,  electronic
    35  funds  transfer,  debit card or credit card that is made by the taxpayer

    36  during the taxable year.
    37    3. "Educational program" means an academic or  similar  program  of  a
    38  public  school  that  enhances the curriculum or academic program of the
    39  public school, or provides a  pre-kindergarten  program  to  the  public
    40  school.  For  purposes  of  this definition, the instruction, materials,
    41  programs and other activities  offered  by  or  through  an  educational
    42  program may include, but are not limited to, the following features: (i)
    43  instruction or materials promoting health, physical education, and fami-
    44  ly  and  consumer  sciences; literary, performing and visual arts; math-
    45  ematics, social studies, technology  and  scientific  achievement;  (ii)
    46  instruction  or  programming  to  meet  the  education  needs of at-risk

    47  students or students with  disabilities,  including  tutoring  or  coun-
    48  seling;  or  (iii)  the  use  of  specialized  instructional  materials,
    49  instructors or instruction not provided by a public school.
    50    4. "Educational scholarship organization" means an entity that (i)  is
    51  exempt  from taxation under paragraph three of subsection (c) of section
    52  five hundred one of the internal revenue code, (ii) uses at least ninety
    53  percent of the qualified contributions received during the calendar year
    54  and any income derived from such qualified  contributions  for  scholar-
    55  ships, (iii) provides more than fifty percent of its scholarships during
    56  a calendar year to eligible pupils who reside in a household that has an


        A. 1826--D                          3
 
     1  income  not to exceed one hundred fifty percent of the income qualifica-
     2  tion required for the reduced price school lunches  under  the  National
     3  School  Lunch  Act, provided however, for the purposes of an educational
     4  scholarship  organization  fulfilling  such  requirement, an educational
     5  scholarship organization may enter into an agreement with another educa-
     6  tional scholarship organization or organizations to jointly report their
     7  scholarship information to meet such requirement, (iv) provides scholar-
     8  ships to eligible pupils for use  at  not  fewer  than  three  qualified
     9  schools,  (v)  deposits and holds qualified contributions and any income
    10  derived from qualified contributions in an account that is separate from

    11  the  organization's  operating  or  other  funds  until  such  qualified
    12  contributions  or  income are withdrawn for use, and (vi) is approved to
    13  receive authorized  contributions  and  issue  certificates  of  receipt
    14  pursuant to article twenty-five of the education law.
    15    5.  "Eligible  pupil"  means a child who (i) is a resident, (ii) is of
    16  school age in accordance with  subdivision  one  of  section  thirty-two
    17  hundred  two  of  the  education  law  or who is four years of age on or
    18  before December first of the year in which such child is enrolled  in  a
    19  pre-kindergarten  program,  (iii) attends or is about to attend a quali-
    20  fied school, and (iv) resides in a household that has a federal adjusted

    21  gross income of two hundred fifty thousand  dollars  or  less,  provided
    22  however,  for  households  with  three  or more dependent children, such
    23  income level shall be increased by ten thousand  dollars  per  dependent
    24  child, not to exceed three hundred thousand dollars.
    25    6.  "Local  education fund" means a not-for-profit entity which (i) is
    26  exempt from taxation under paragraph three of subsection (c) of  section
    27  five  hundred  one of the internal revenue code, (ii) is established for
    28  the purpose of supporting at least one public school or a public  school
    29  district,  (iii)  uses at least ninety percent of the qualified contrib-
    30  utions received during the calendar year and  any  income  derived  from

    31  such  qualified contributions to support the public school or schools or
    32  public school district or districts that such fund has been  established
    33  to  support,  (iv)  deposits  and  holds qualified contributions and any
    34  income derived from qualified contributions in an account that is  sepa-
    35  rate  from  the  fund's  operating  or  other funds until such qualified
    36  contributions or income are withdrawn for use, and (v)  is  approved  to
    37  receive  authorized  contributions  and  issue  certificates  of receipt
    38  pursuant to article twenty-five of the education law.
    39    7.  "Non-public  school"  means  any  not-for-profit  pre-kindergarten
    40  program  or  elementary  or  secondary  sectarian or nonsectarian school

    41  located in this  state,  other  than  a  public  school,  that  provides
    42  instruction  at  one  or  more  locations to students in accordance with
    43  subdivision two of section thirty-two hundred four of the education law.
    44    8. "Public education entity" means a public school or a public  school
    45  district, provided that such public school or public school district (i)
    46  deposits  and  holds qualified contributions and any income derived from
    47  such qualified contributions in an account that  is  separate  from  the
    48  public school or public school district's operating or other funds until
    49  such qualified contributions or income are withdrawn for use and (ii) is
    50  approved  to  issue  certificates of receipt pursuant to article twenty-
    51  five of the education law.

    52    9. "Public school" means any free elementary or  secondary  school  in
    53  this state pursuant to article eleven of the constitution, but shall not
    54  include  a  charter school authorized by article fifty-six of the educa-
    55  tion law.

        A. 1826--D                          4
 
     1    10. "Qualified contribution" means the authorized contribution made by
     2  a taxpayer to a public education entity,  school  improvement  organiza-
     3  tion,  local education fund, or educational scholarship organization for
     4  which the contribution authorization certificate has been issued to  the
     5  taxpayer  for  which  the taxpayer has received a certificate of receipt
     6  from such entity, fund or organization.

     7    11. "Qualified educator" means an  individual  who  is  a  teacher  or
     8  instructor  in a qualified school for at least nine hundred hours during
     9  a school year.
    10    12. "Qualified school" means a  public  school  or  non-public  school
    11  located in this state.
    12    13.  "Scholarship"  means  an educational scholarship or tuition grant
    13  awarded to an eligible pupil to attend a qualified school in  an  amount
    14  not  to  exceed the tuition charged to attend such school less any other
    15  educational scholarship or tuition grant received by such eligible pupil
    16  or his or her parent, parents, legal guardian, or  legal  guardians  for
    17  such  eligible  pupil's  tuition;  provided,  however, in the case of an

    18  eligible pupil attending a public school in a  district  of  which  such
    19  pupil  is  not  a resident, the amount of the educational scholarship or
    20  tuition grant awarded may not exceed the tuition charged by  the  public
    21  school pursuant to paragraph d of subdivision four of section thirty-two
    22  hundred  two  of  the  education law, but only if the school district of
    23  which such pupil is a resident is not required to pay for such tuition.
    24    14. "School improvement organization" means  a  not-for-profit  entity
    25  which  (i)  is  exempt from taxation under paragraph three of subsection
    26  (c) of section five hundred one of the internal revenue code, (ii)  uses
    27  at  least  ninety percent of the qualified contributions received during

    28  the calendar year and any income derived  from  qualified  contributions
    29  during  such  months to assist public schools or public school districts
    30  located in this state in their provision of educational programs, either
    31  by making contributions to one or more public schools or  public  school
    32  districts located in this state or providing educational programs to, or
    33  in  conjunction  with,  one  or  more  public  schools  or public school
    34  districts located in this state,  (iii)  deposits  and  holds  qualified
    35  contributions  and any income derived from qualified contributions in an
    36  account that is separate from  the  organization's  operating  or  other
    37  funds  until  such  qualified  contributions or income are withdrawn for

    38  use, and (iv) is approved to issue certificates of receipt  pursuant  to
    39  article  twenty-five of the education law. Such term includes a pre-kin-
    40  dergarten program or not-for-profit entity that allows the  taxpayer  to
    41  choose  to  donate  to  a program, project or initiative identified by a
    42  qualified educator for use in a public school.
    43    (b) Allowance of credit. A  taxpayer  subject  to  tax  under  article
    44  nine-A  or  twenty-two  of  this  chapter  shall be allowed an education
    45  investment tax credit against  such  tax,  pursuant  to  the  provisions
    46  referenced in subdivision (l) of this section, with respect to qualified
    47  contributions made during the taxable year.
    48    (c)  Amount  of credit. The amount of the credit shall be seventy-five

    49  percent of the taxpayer's total qualified contributions, capped  at  one
    50  million  dollars.  A taxpayer that is a partner in a partnership, member
    51  of a limited liability company or shareholder in an S corporation  shall
    52  be allowed to claim its pro rata share of the credit earned by the part-
    53  nership,  limited liability company or S corporation, provided that such
    54  a taxpayer shall not claim credit in excess of the limit imposed by this
    55  subdivision.

        A. 1826--D                          5
 
     1    (d) Information to be posted on the department's website. Beginning on
     2  the sixteenth day of January of each year, the commissioner shall  main-
     3  tain on the department's website a running total of the amount of avail-

     4  able  credit  for  which  taxpayers  may apply pursuant to this section.
     5  Such  running total shall be updated on a daily basis. Additionally, the
     6  commissioner shall maintain on the department's website a  list  of  the
     7  school  improvement organizations, local education funds and educational
     8  scholarship organizations approved  to  issue  certificates  of  receipt
     9  pursuant  to  article twenty-five of the education law. The commissioner
    10  shall also maintain on the department's website a list of public  educa-
    11  tion  entities,  school improvement organizations, local education funds
    12  and  educational  scholarship  organizations  whose  approval  to  issue
    13  certificates  of  receipt  has  been revoked along with the date of such
    14  revocation.

    15    (e) Applications for contribution authorization certificates. Prior to
    16  making a contribution to a public education entity,  school  improvement
    17  organization, local education fund, or educational scholarship organiza-
    18  tion,  the  taxpayer  shall  apply  to the department for a contribution
    19  authorization certificate for such contribution. Such application  shall
    20  be  in the form and manner prescribed by the department.  The department
    21  may allow taxpayers to make multiple  applications  on  the  same  form,
    22  provided  that  each  contribution  listed  on such application shall be
    23  treated as a separate application and that the  department  shall  issue
    24  separate  contribution authorization certificates for each such applica-
    25  tion.

    26    (f) Contribution authorization certificates. 1.  Issuance  of  certif-
    27  icates.  The commissioner shall issue contribution authorization certif-
    28  icates  in  two phases.   In phase one, which begins on the first day of
    29  January and ends on the fifteenth day of January, the commissioner shall
    30  accept applications  for  contribution  authorization  certificates  but
    31  shall  not  issue any such certificates.  Commencing after the sixteenth
    32  day of January, the commissioner shall issue contribution  authorization
    33  certificates  for  applications received during phase one, provided that
    34  if the aggregate total of the contributions for which applications  have
    35  been  received  during phase one exceeds the amount of the credit cap in

    36  subdivision (h) of this  section,  the  authorized  contribution  amount
    37  listed  on  each  contribution authorization certificate shall equal the
    38  pro-rata share of the credit cap.  If the credit cap  is  not  exceeded,
    39  phase  two  commences on February first and ends on the December thirty-
    40  first. The commissioner shall issue contribution  authorization  certif-
    41  icates on a first-come first serve basis based upon the date the depart-
    42  ment received the taxpayer's application for such certificate; provided,
    43  however,  that  if  on  any  day  the  department  receives applications
    44  requesting contribution  authorization  certificates  for  contributions
    45  that  in  the aggregate exceed the amount of the credit cap on such day,

    46  the authorized contribution amount listed in each contribution  authori-
    47  zation  certificate shall be the taxpayer's pro-rata share of the credit
    48  cap. For purposes of determining a taxpayer's pro-rata share  of  credit
    49  cap, the commissioner shall multiply the amount of credit cap by a frac-
    50  tion, the numerator of which equals the total contribution amount listed
    51  on  the  taxpayer's  application and the denominator of which equals the
    52  aggregate  amount  of  contributions  listed  on  the  applications  for
    53  contribution  authorization  certificates  were  received  on  such day.
    54  Contribution authorization certificates for applications received during
    55  phase one shall be mailed no later than the twentieth  day  of  January.

    56  Contribution authorization certificates for applications received during

        A. 1826--D                          6
 
     1  phase  two  shall be mailed within five days of receipt of such applica-
     2  tions. Provided, however, that  no  contribution  authorization  certif-
     3  icates  for applications received during phase two shall be issued until
     4  all  of  the  contribution  authorization  certificates for applications
     5  received during phase one have been issued.
     6    2. Contribution authorization certificate contents. Each  contribution
     7  authorization  certificate shall state (i) the date such certificate was
     8  issued, (ii) the date by which the authorized  contributions  listed  in

     9  the  certificate  must  be  made,  which shall be no later than November
    10  thirtieth of the year for which the contribution  authorization  certif-
    11  icate was issued, (iii) the taxpayer's name and address, (iv) the amount
    12  of  authorized contributions, (v) the contribution authorization certif-
    13  icate's certificate number, (vi) the name  and  address  of  the  public
    14  education  entity, school improvement organization, local education fund
    15  or educational scholarship organization for which the taxpayer may  make
    16  the  authorized  contribution,  and (vii) any other information that the
    17  commissioner deems necessary.
    18    3. Notification  of  the  issuance  of  a  contribution  authorization

    19  certificate.  Upon issuance of a contribution authorization certificate,
    20  the commissioner shall notify the educational scholarship  organization,
    21  public education entity, school improvement organization or local educa-
    22  tion  fund of the issuance of the contribution authorization certificate
    23  to a taxpayer.  Such notification shall include (i) the taxpayer's  name
    24  and  address,  (ii) the date such certificate was issued, (iii) the date
    25  by which the authorized contribution listed in the notification must  be
    26  made  by  the  taxpayer, (iv) the amount of the authorized contribution,
    27  (v) contribution authorization certificate, and (vi) any other  informa-
    28  tion that the commissioner deems necessary.

    29    (g) Certificate of receipt. 1. In general. No public education entity,
    30  school  improvement  organization,  local education fund, or educational
    31  scholarship organization shall issue a certificate of  receipt  for  any
    32  contribution  made  by  a  taxpayer unless such public education entity,
    33  school improvement organization, local education  fund,  or  educational
    34  scholarship  organization  has  been  approved  to issue certificates of
    35  receipt pursuant to article twenty-five of the education law. No  public
    36  education entity, school improvement organization, local education fund,
    37  or  educational  scholarship  organization  shall issue a certificate of
    38  receipt for a contribution made by a taxpayer unless such public  educa-

    39  tion  entity,  school improvement organization, local education fund, or
    40  educational  scholarship  organization  has  received  notice  from  the
    41  department that the department issued a credit authorization certificate
    42  to the taxpayer for such contribution.
    43    2. Timely contribution. If a taxpayer makes an authorized contribution
    44  to  the  public education entity, school improvement organization, local
    45  education fund, or educational scholarship organization set forth on the
    46  authorization certificate issued to the taxpayer no later than the  date
    47  by  which  such  authorized  contribution  is  required to be made, such
    48  public education entity, school improvement organization,  local  educa-

    49  tion  fund, or educational scholarship organization shall, within thirty
    50  days of receipt of the authorized contribution, issue to the taxpayer  a
    51  written  certificate of receipt; provided, however, that if the taxpayer
    52  contributes an amount that is less than the amount listed on the taxpay-
    53  er's contribution authorization certificate, the taxpayer shall  not  be
    54  issued a certificate of receipt for such contribution.
    55    3.  Certificate of receipt contents. Each certificate of receipt shall
    56  state (i) the name and address of the issuing public  education  entity,

        A. 1826--D                          7
 
     1  school  improvement  organization,  local education fund, or educational

     2  scholarship organization, (ii) the taxpayer's name  and  address,  (iii)
     3  the date for each contribution, (iv) the amount of each contribution and
     4  the corresponding contribution authorization certificate number, (v) the
     5  total  amount  of contributions, and (vi) any other information that the
     6  commissioner may deem necessary.
     7    4. Notification to the department for the issuance of a certificate of
     8  receipt. Upon the issuance of a  certificate  of  receipt,  the  issuing
     9  public  education  entity, school improvement organization, local educa-
    10  tion fund, or educational scholarship organization shall, within  thirty
    11  days  of issuing the certificate of receipt, provide the department with

    12  notification of the issuance of such certificate in the form and  manner
    13  prescribed by the department.
    14    5. Notification to the department of the non-issuance of a certificate
    15  of  receipt.  Each public education entity, school improvement organiza-
    16  tion, local education fund, or educational scholarship organization that
    17  received notification from the department pursuant to subdivision (d) of
    18  this section regarding the  issuance  of  a  contribution  authorization
    19  certificate  to  a  taxpayer shall, within thirty days of the expiration
    20  date for such  authorized  contribution,  provide  notification  to  the
    21  department for each taxpayer that failed to make the authorized contrib-

    22  ution  to such public education entity, school improvement organization,
    23  local education fund, or educational  scholarship  organization  in  the
    24  form and manner prescribed by the department.
    25    6.  Failure  to notify the department. Within thirty days of discovery
    26  of the failure of any public education entity, school improvement organ-
    27  ization, local education fund, or educational  scholarship  organization
    28  to  comply  with  the notification requirements prescribed by paragraphs
    29  four and five of this subdivision, the commissioner shall issue a notice
    30  of compliance failure to such entity, program fund or organization. Such
    31  entity, program fund or organization shall have  thirty  days  from  the

    32  date  of  such notice to make the notifications prescribed by paragraphs
    33  four and five of this subdivision. Such period may be  extended  for  an
    34  additional  thirty  days upon the request of the entity, program fund or
    35  organization. Upon the expiration of the period for compliance set forth
    36  in the notice prescribed by this paragraph, the commissioner shall noti-
    37  fy the board of regents and the  commissioner  of  education  that  such
    38  entity,  program  fund  or organization failed to make the notifications
    39  prescribed by paragraphs four and five of this subdivision.
    40    (h) Credit cap. The  maximum  permitted  credits  under  this  section
    41  available to all taxpayers for qualified contributions for calendar year

    42  two  thousand  fifteen  shall  be one hundred fifty million dollars.  In
    43  calendar year two thousand sixteen, the maximum permitted credits  under
    44  this section available to all taxpayers shall be two hundred twenty-five
    45  million  dollars  plus  any amounts that are required to be added to the
    46  cap pursuant to subdivision (i) of this section.  For calendar year  two
    47  thousand  seventeen  and  each  calendar  year  thereafter,  the maximum
    48  permitted credits under this section available to all taxpayers shall be
    49  three hundred million dollars, plus any amounts that are required to  be
    50  added to the cap pursuant to subdivision (i) of this section.  The maxi-
    51  mum  permitted  credits  under  this section for qualified contributions

    52  shall be allocated fifty percent to public  education  entities,  school
    53  improvement  organizations,  and local education funds and fifty percent
    54  to educational scholarship organizations.
    55    (i) Additions to the credit cap. Unissued certificates of receipt. Any
    56  amounts for which the department receives notification  of  non-issuance

        A. 1826--D                          8
 
     1  of  a  certificate  of  receipt  shall be added to the cap prescribed in
     2  subdivision (h) of this section for the immediately following year.
     3    (j) Other requirements; miscellaneous. 1. Record keeping. Each taxpay-
     4  er  shall,  for each taxable year for which the education investment tax

     5  credit provided for under this section is claimed, maintain  records  of
     6  the  following  information: (i) contribution authorization certificates
     7  obtained pursuant to subdivision (f) of this section, and  (ii)  certif-
     8  icates of receipt obtained pursuant to subdivision (g) of this section.
     9    2.  Regulations.  The  commissioner is hereby authorized to promulgate
    10  and adopt on an emergency basis regulations necessary for the  implemen-
    11  tation of this section.
    12    (k) Reports. 1. Reports to the commissioner. On or before the last day
    13  of  January for each calendar year, each public education entity, school
    14  improvement organization, local education fund, and educational scholar-
    15  ship organization that issued one or more certificates of receipt  shall

    16  report  to  the  commissioner the number of such certificates issued and
    17  the aggregate amount of qualified contributions  made  to  such  entity,
    18  fund, or organization during the immediately preceding calendar year.
    19    2.  Joint  annual  report.  On  or before the last day of May for each
    20  calendar year, for the immediately preceding year, the commissioner  and
    21  the  commissioner  of education shall jointly submit a written report to
    22  the governor, the temporary president of the senate, the speaker of  the
    23  assembly,  the chairman of the senate finance committee and the chairman
    24  of the assembly ways and means  committee  regarding  the  credit.  Such
    25  report  shall  contain  information  for articles nine-A and twenty-two,

    26  respectively, regarding: (i) the number of applications  received;  (ii)
    27  the  number  of  and  aggregate  value of the contribution authorization
    28  certificates issued for  contributions  to  public  education  entities,
    29  school improvement organizations, local education funds, and scholarship
    30  organizations,  respectively;  (iii)  the  geographical  distribution by
    31  county of (A) the applications for  contribution  authorization  certif-
    32  icates,  distribution  by  county  of (B) the public education entities,
    33  school improvement organizations, local education funds, and educational
    34  scholarship organizations listed on  the  issued  contribution  authori-
    35  zation   certificates;  and  (iv)  information,  including  geographical

    36  distribution by county, of the number of eligible pupils  that  received
    37  scholarships,  the  number  of  qualified  schools  attended by eligible
    38  pupils that received such scholarships, and the average value of  schol-
    39  arships  received  by  such eligible pupils. The commissioner and desig-
    40  nated employees of the department, the board of regents and all  members
    41  of  the  board  of  regents, including the commissioner of education and
    42  designated employees of the department of education,  shall  be  allowed
    43  and  are directed to share and exchange information regarding the school
    44  improvement organizations, local education funds and educational  schol-
    45  arship  organizations  that  applied  for  approval  to be authorized to

    46  receive qualified contributions;  and  the  public  education  entities,
    47  school improvement organizations, local education funds, and educational
    48  scholarship  organizations  authorized to issue certificates of receipt,
    49  including information contained in or derived from application forms and
    50  reports submitted to the department of education or board of regents.
    51    (l) Cross references. For application of the credit  provided  for  in
    52  this section, see the following provisions of this chapter:
    53    1. Article 9-A: section 210; subdivision 48;
    54    2. Article 22: section 606; subsections (i) and (xx).
    55    §  4.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
    56  amended by adding a new subparagraph 21 to read as follows:


        A. 1826--D                          9
 
     1    (21) The amount of any  deduction  allowed  pursuant  to  section  one
     2  hundred seventy of the internal revenue code for which credit is claimed
     3  pursuant  to  subdivision forty-eight of section two hundred ten of this
     4  article.
     5    § 5. Section 210 of the tax law is amended by adding a new subdivision
     6  48 to read as follows:
     7    48.  Education  investment  tax  credit.  (a)  Allowance  of credit. A
     8  taxpayer shall be allowed a  credit,  to  be  computed  as  provided  in
     9  section forty-one of this chapter, against the tax imposed by this arti-
    10  cle.
    11    (b)  Application  of credit. The credit allowed under this subdivision
    12  for any taxable year shall not reduce the tax due for that year to  less

    13  than  the  higher  of the amounts prescribed in paragraphs (c) or (d) of
    14  subdivision one of this  section.  However,  if  the  amount  of  credit
    15  allowed under this subdivision for qualified contributions for any taxa-
    16  ble  year  reduces the tax to such amount, any amount of credit thus not
    17  deductible in such taxable year may be carried over  to  the  succeeding
    18  five  years and may be deducted from the taxpayer's tax for such year or
    19  years.
    20    § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    21  of  the  tax  law  is amended by adding a new clause (xxxvii) to read as
    22  follows:
    23  (xxxvii) Education investment        Amount of credit under subdivision
    24  tax credit under subsection (xx)     forty-eight of section two hundred

    25                                       ten
    26    § 7. Section 606 of the tax law is amended by adding a new  subsection
    27  (w) to read as follows:
    28    (w) Instructional materials and supplies credit. (1) For taxable years
    29  beginning  on  and after January first, two thousand fifteen, a taxpayer
    30  shall be allowed a credit in the amount paid by the taxpayer during  the
    31  taxable  year  for  instructional materials and supplies with respect to
    32  classroom based instruction  in  a  qualified  school,  or  two  hundred
    33  dollars,  whichever  is less; provided that the taxpayer is a teacher or
    34  instructor in a qualified school, as defined  in  section  forty-one  of
    35  this  chapter, for at least nine hundred hours during a school year. For

    36  purposes of this subsection, the term  "materials  and  supplies"  means
    37  amounts paid for instructional materials or supplies that are designated
    38  for classroom use in any qualified school.
    39    (2) A husband and wife who file separate returns for a taxable year in
    40  which  they could have filed a joint return may each claim only one-half
    41  of the tax credit that would have been allowed for a joint return.
    42    (3) If the amount of the credit allowed under this subsection for  any
    43  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    44  shall be treated as an overpayment of tax to be credited or refunded  in
    45  accordance with the provisions of section six hundred eighty-six of this

    46  article, provided, however, that no interest shall be paid thereon.
    47    §  8.  Subsections  (yy)  and  (zz)  of section 606 of the tax law, as
    48  relettered by section 5 of part H of chapter 1 of the laws of  2003  are
    49  relettered  subsections  (yyy)  and  (zzz)  and a new subsection (xx) is
    50  added to read as follows:
    51    (xx) Education investment tax  credit.  (1)  Allowance  of  credit.  A
    52  taxpayer shall be allowed a credit to be computed as provided in section
    53  forty-one of this chapter, against the tax imposed by this article.
    54    (2)  Application  of credit. If the amount of the credit allowed under
    55  this subsection for any qualified contributions  for  any  taxable  year
    56  exceeds the taxpayer's tax for such year, the excess may be carried over


        A. 1826--D                         10
 
     1  to the succeeding five years and may be deducted from the taxpayer's tax
     2  for such year or years.
     3    § 9. Subsection (c) of section 615 of the tax law is amended by adding
     4  a new paragraph 9 to read as follows:
     5    (9)  The  amount  of  any federal deduction for contributions made for
     6  which a taxpayer claims a credit under subsection (kk)  of  section  six
     7  hundred six of this article.
     8    §  10. The education law is amended by adding a new article 25 to read
     9  as follows:
    10                                 ARTICLE 25
    11                   EDUCATION INVESTMENT TAX CREDIT PROGRAM
    12  Section 1209. Short title.
    13          1210. Definitions.
    14          1211. Approval to issue certificates of receipt.

    15          1212. Applications  for  approval  to  issue   certificates   of
    16                  receipt.
    17          1213. Application approval.
    18          1214. Revocation of approval to issue certificates of receipt.
    19          1215. Reporting and recordkeeping.
    20          1216. Joint annual report.
    21          1217. Commissioner; powers.
    22    §  1209.  Short title. This article shall be known and may be cited as
    23  the "education investment tax credit program".
    24    § 1210. Definitions. As used in  this  article,  the  following  terms
    25  shall have the following meanings:
    26    1.  "Authorized  contribution" means the contribution amount listed on
    27  the contribution authorization certificate issued to a taxpayer.

    28    2. "Contribution" means a donation paid  by  cash,  check,  electronic
    29  funds  transfer,  debit  card or credit card made by the taxpayer during
    30  the tax year.
    31    3. "Educational program" means an academic or  similar  program  of  a
    32  public  school  that  enhances the curriculum or academic program of the
    33  public school, or provides a  pre-kindergarten  program  to  the  public
    34  school.  For  purposes  of  this definition, the instruction, materials,
    35  programs or other  activities  offered  by  or  through  an  educational
    36  program may include, but are not limited to, the following features: (a)
    37  instruction or materials promoting health, physical education, and fami-
    38  ly  and  consumer  sciences; literary, performing and visual arts; math-

    39  ematics, social studies,  technology  and  scientific  achievement;  (b)
    40  instruction  or  programming  to  meet  the  education  needs of at-risk
    41  students or students with  disabilities,  including  tutoring  or  coun-
    42  seling;  or  (c) use of specialized instructional materials, instructors
    43  or instruction not provided by a public school.
    44    4. "Educational scholarship organization" means a not-for-profit enti-
    45  ty which (i) is exempt from taxation under paragraph three of subsection
    46  (c) of section five hundred one of the internal revenue code, (ii)  uses
    47  or  designates  at  least  ninety  percent of the revenue from qualified
    48  contributions received during the calendar year and any  income  derived

    49  from  qualified contributions for scholarships, (iii) provides more than
    50  fifty percent of its scholarships during a  calendar  year  to  eligible
    51  pupils  who  reside  in a household that has an income not to exceed one
    52  hundred fifty percent of  the  income  qualification  required  for  the
    53  reduced  price  school  lunches  under  the  National  School Lunch Act,
    54  provided however for the purposes of an educational  scholarship  organ-
    55  ization  fulfilling  such requirement, an educational scholarship organ-
    56  ization may enter into an agreement with another educational scholarship

        A. 1826--D                         11
 
     1  organization or organizations to jointly report their scholarship infor-

     2  mation to meet such  requirement;  (iv)  deposits  and  holds  qualified
     3  contributions  and any income derived from qualified contributions in an
     4  account  that  is  separate  from  the organization's operating or other
     5  funds until such qualified contributions or  income  are  withdrawn  for
     6  use,  and  (v)  provides  scholarships to eligible pupils for use at not
     7  fewer than three qualified schools.
     8    5. "Eligible pupil" means a child who (i) is a resident of this state,
     9  (ii) is school age in accordance with subdivision one of  section  thir-
    10  ty-two  hundred  two  of  this chapter or who is four years of age on or
    11  before December first of the year in which they are enrolled in  a  pre-

    12  kindergarten  program,  (iii)  attends or is about to attend a qualified
    13  school, and (iv) resides in a household which  has  a  federal  adjusted
    14  gross  income  of  two  hundred fifty thousand dollars or less, provided
    15  however, for households with three  or  more  dependent  children,  such
    16  income  level  shall  be increased by ten thousand dollars per dependent
    17  child, not to exceed three hundred thousand dollars.
    18    6. "Local education fund" means a not-for-profit entity which  (i)  is
    19  exempt  from taxation under paragraph three of subsection (c) of section
    20  five hundred one of the internal revenue code, (ii) is  established  for
    21  the purpose of supporting at least one public school, or a public school

    22  district,  (iii)  uses at least ninety percent of the qualified contrib-
    23  utions received during the calendar year and  any  income  derived  from
    24  such  qualified contributions to support the public school or schools or
    25  public school district or districts that such fund has been  established
    26  to  support, and (iv) deposits and holds qualified contributions and any
    27  income derived from qualified contributions in an account that is  sepa-
    28  rate  from  the  fund's  operating  or  other funds until such qualified
    29  contributions or income are withdrawn for use.
    30    7.  "Nonpublic  school"  means  any  not-for-profit   pre-kindergarten
    31  program or elementary, secondary sectarian or nonsectarian school, other

    32  than  a  public  school,  that  is  providing instruction at one or more
    33  locations to an eligible pupil in accordance  with  subdivision  two  of
    34  section thirty-two hundred four of this chapter.
    35    8.  "Public  education  entity"  means  a  public school district or a
    36  public school, provided that  such  public  school  district  or  public
    37  school deposits and holds qualified contributions and any income derived
    38  from  qualified  contributions  in  an account that is separate from the
    39  public school or public school district's operating or other funds until
    40  such qualified contributions or income are withdrawn for use from  oper-
    41  ating or other funds and is approved to receive authorized contributions

    42  and issue certificates of receipt pursuant to this article.
    43    9.  "Public  school"  means any free elementary or secondary school in
    44  this state pursuant to article eleven of the New York constitution,  but
    45  shall  not  include  a charter school authorized by article fifty-six of
    46  this chapter.
    47    10. "Qualified contribution" means the authorized contribution made by
    48  a taxpayer to a public education entity, local  education  fund,  school
    49  improvement  district  or  educational  scholarship organization that is
    50  listed on the  contribution  authorization  certificate  issued  to  the
    51  taxpayer  and  for  which  the  taxpayer  has  received a certificate of
    52  receipt from such entity, fund, or organization.

    53    11. "Qualified educator" means an  individual  who  is  a  teacher  or
    54  instructor  in a qualified school for at least nine hundred hours during
    55  a school year.

        A. 1826--D                         12
 
     1    12. "Qualified school" means  a  public  school  or  nonpublic  school
     2  located in this state.
     3    13.    "Scholarship" means an educational scholarship or tuition grant
     4  awarded to an eligible pupil to attend a qualified school in  an  amount
     5  not  to  exceed the tuition charged to attend such school less any other
     6  educational scholarship or tuition grant received by such eligible pupil
     7  or his or her parent, parents, legal guardian  or  legal  guardians  for

     8  such  eligible  pupil's  tuition;  provided,  however, in the case of an
     9  eligible pupil attending a public school in a  district  of  which  such
    10  pupil  is  not  a resident, the amount of the educational scholarship or
    11  tuition grant awarded may not exceed the tuition charged by  the  public
    12  school pursuant to paragraph d of subdivision four of section thirty-two
    13  hundred  two  of  this chapter less any other educational scholarship or
    14  tuition grant received by such eligible pupil  or  his  or  her  parent,
    15  parents,  legal  guardian  or  legal guardians for such eligible pupil's
    16  tuition, but only if the school district of which such pupil is a  resi-
    17  dent is not required to pay for such tuition.

    18    14.  "School  improvement  organization" means a not-for-profit entity
    19  that (i) is exempt from taxation under paragraph three of subsection (c)
    20  of section five hundred one of the internal revenue code, (ii)  uses  at
    21  least  ninety percent of the qualified contributions received during the
    22  calendar year and any income derived from qualified contributions during
    23  such months to assist public schools or public school districts  located
    24  in  this  state  in  their  provision of educational programs, either by
    25  making contributions to one or more  public  schools  or  public  school
    26  districts located in this state or providing educational programs to, or
    27  in  conjunction  with,  one  or  more  public  schools  or public school

    28  districts located in this state,  (iii)  deposits  and  holds  qualified
    29  contributions  and any income derived from qualified contributions in an
    30  account that is separate from  the  organization's  operating  or  other
    31  funds  until  such  qualified  contributions or income are withdrawn for
    32  use, and (iv) is approved to issue certificates of receipt  pursuant  to
    33  this article.  Such term includes a pre-kindergarten program or not-for-
    34  profit entity that allows the taxpayer to choose to donate to a program,
    35  project  or  initiative  identified by a qualified educator for use in a
    36  public school.
    37    § 1211. Approval to issue certificates of receipt. 1.  Public  schools
    38  and  public  school  districts.  All  public  schools  and public school

    39  districts shall be approved to issue certificates of  receipt  provided,
    40  that  a public school or public school district shall not be approved if
    41  either (i) such public school or public school district fails to deposit
    42  and hold qualified contributions and any income derived  from  qualified
    43  contributions  in  an account that is separate from the school or school
    44  district's operating or other funds until such  qualified  contributions
    45  or  income  are  withdrawn  for  use,  or  (ii) the board of regents has
    46  revoked such approval for such public school or public  school  district
    47  pursuant to section twelve hundred fourteen of this article.
    48    2. School improvement organizations, educational scholarship organiza-

    49  tions  and  local  education  funds. No school improvement organization,
    50  educational scholarship organization or local education fund shall issue
    51  any certificates of receipt without filing an  application  pursuant  to
    52  section twelve hundred twelve and receiving approval pursuant to section
    53  twelve hundred thirteen of this article.
    54    §  1212.  Applications  for approval to issue certificates of receipt.
    55  Each school improvement organization, educational scholarship  organiza-
    56  tion  and  local education fund shall submit an application to the board

        A. 1826--D                         13
 
     1  of regents for approval to issue certificates of receipt in the form and

     2  manner prescribed by the board of regents, provided that  such  applica-
     3  tion  shall  include:  (1)  submission of documentation that such school
     4  improvement  organization,  local education fund or educational scholar-
     5  ship organization has been granted exemption from taxation  under  para-
     6  graph  three of subsection (c) of section five hundred one of the inter-
     7  nal revenue code; (2) a list of names and addresses of  all  members  of
     8  the governing board of the school improvement organization, local educa-
     9  tion  fund  or  educational  scholarship organization; and (3) an educa-
    10  tional scholarship organization shall provide criteria for the  awarding
    11  of scholarships to eligible students.

    12    §  1213.  Application  approval. 1. In general.   The board of regents
    13  shall review each application to issue certificates of receipt  pursuant
    14  to  this article.  Approval or denial of an application shall be made at
    15  the next scheduled meeting of the board of regents that follows  receipt
    16  of such application, provided, however that if it is not practicable for
    17  the board to review an application that is received less than three days
    18  before  a  scheduled  meeting,  the  board shall approve or deny such an
    19  application at the immediately following scheduled meeting.
    20    2. Notification. Applicants shall be notified of the board of regents'
    21  determination within three business days of the board's determination.

    22    § 1214. Revocation of approval to issue certificates of  receipt.  The
    23  board  of regents, in consultation with the commissioner of taxation and
    24  finance, may revoke the approval of a school  improvement  organization,
    25  educational  scholarship  organization,  local  education  fund,  public
    26  school or public school district to issue certificates of receipt upon a
    27  finding that such organization, fund,  school  or  school  district  has
    28  violated  this  article  or  section  forty-one  of  the  tax law. These
    29  violations shall include, but not be limited to, any of  the  following:
    30  (1)  failure  to meet the requirements of this article or section forty-
    31  one of the tax law, (2)  the  failure  to  maintain  full  and  adequate

    32  records  with respect to the receipt of qualified contributions, (3) the
    33  failure to supply such records to the commissioner, department of  taxa-
    34  tion  and finance, the department or the board of regents when requested
    35  by the department or board, or (4) the failure to provide notice to  the
    36  department  of  taxation  and finance of the issuance or non-issuance of
    37  certificates of receipt pursuant to section forty-one of  the  tax  law;
    38  provided,  however,  that the board of regents shall not revoke approval
    39  pursuant to this section based upon a violation of tax  law  unless  the
    40  commissioner   of   taxation  and  finance  agrees  that  revocation  is
    41  warranted; and provided further that the  board  of  regents  shall  not

    42  revoke  approval  pursuant to this section when the failure to comply is
    43  due to clerical error and not negligence or  intentional  disregard  for
    44  the  law.   Within five days of the determination revoking approval, the
    45  commissioner shall provide notice of such revocation to the  educational
    46  scholarship  organization, school improvement organization, local educa-
    47  tion fund, public school, or public school district and to  the  depart-
    48  ment of taxation and finance.
    49    §  1215.  Reporting  and recordkeeping. 1. Reporting. Each educational
    50  scholarship organization, school improvement organization, local  educa-
    51  tion fund, public school and public school district that receives quali-

    52  fied  contributions  shall  report  to the commissioner and the board of
    53  regents by January thirty-first of each calendar year. Such report shall
    54  be in the form and manner prescribed by the commissioner in consultation
    55  with the board of regents.

        A. 1826--D                         14
 
     1    2. Recordkeeping. Each educational  scholarship  organization,  school
     2  improvement organization, local education fund, public school and public
     3  school  district  that  issued at least one certificate of receipt shall
     4  maintain records including (a) notifications received from  the  depart-
     5  ment  of  taxation and finance, (b) notifications made to the department
     6  of taxation and finance, (c) copies of qualified contributions received,

     7  (d) copies of the deposit of such qualified contributions, (e) copies of
     8  issued certificates of receipt, (f) annual financial statements, (g)  in
     9  the  case  of  school improvement organizations, educational scholarship
    10  organizations and  local  education  funds,  the  application  submitted
    11  pursuant  to  section  twelve  hundred  twelve  of  this article and the
    12  approval issued by the board of regents, and (h) any  other  information
    13  as  prescribed  by  regulation  promulgated  by the commissioner or rule
    14  promulgated by the board of regents.
    15    § 1216. Joint annual report. On or before the last day of May for each
    16  calendar year, the commissioner of taxation and finance and the  commis-

    17  sioner,  jointly, shall submit a written report as provided in paragraph
    18  two of subdivision (k) of section forty-one of the tax law.
    19    § 1217. Commissioner; powers. The commissioner shall promulgate on  an
    20  emergency  basis  regulations  necessary  for the implementation of this
    21  section. The commissioner shall make  any  application  required  to  be
    22  filed pursuant to this article available to applicants within sixty days
    23  of the effective date of this article.
    24    §  11.  The education law is amended by adding a new section 1503-a to
    25  read as follows:
    26    § 1503-a. Power to accept and solicit gifts and  donations.    1.  All
    27  school districts organized by special laws or pursuant to the provisions

    28  of  a  general  law are hereby authorized and empowered to accept gifts,
    29  donations, and contributions to the district and to solicit the same.
    30    2. Notwithstanding any other provision of this chapter or of any other
    31  general or special law to the  contrary,  the  receipt  of  such  gifts,
    32  donations,  contributions and other funds, and any income derived there-
    33  from, shall be disregarded  for  the  purposes  of  all  apportionments,
    34  computations, and determinations of state aid.
    35    §  12.  Severability. If any provision of this section or the applica-
    36  tion thereof to any person or circumstances is held invalid, such  inva-
    37  lidity  shall not affect other provisions or applications of the section
    38  which can be given effect without the invalid provision or  application,

    39  and to this end the provisions of this section are declared to be sever-
    40  able.
    41    §  13. This act shall take effect immediately and shall apply to taxa-
    42  ble years beginning after December 31, 2014.
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