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S04099 Summary:

BILL NOS04099A
 
SAME ASNo same as
 
SPONSORGOLDEN
 
COSPNSRFELDER, ADDABBO, AVELLA, BONACIC, DIAZ, DILAN, GALLIVAN, GRISANTI, HASSELL-THOMPSON, LATIMER, MARCHIONE, MARTINS, MAZIARZ, SAVINO
 
MLTSPNSR
 
Add S39, amd SS208, 210, 606, 615, 1456, 1453, 1503 & 1511, Tax L; add Art 25 SS1209 - 1217, Ed L
 
Establishes the "education investment incentives act" and tax credit; provides credits against income and corporate franchise tax for various qualified education investments including scholarships, education funds and home-based instructional materials.
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S04099 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4099--A
 
                               2013-2014 Regular Sessions
 
                    IN SENATE
 
                                      March 8, 2013
                                       ___________
 
        Introduced  by  Sens.  GOLDEN,  ADDABBO,  DILAN, MAZIARZ, SAVINO -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee  on  Investigations  and  Government Operations -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 

        AN ACT to amend the tax law and the education law, in relation to enact-
          ing the "education 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. The education of the children of this state is one of  the  founda-
     6  tions  of  a  strong  society  that  requires an academically robust and
     7  financially sound school system, both public and non-public;
     8    b. At a time when the state is considering ways of  reducing  the  tax
     9  burden  for New York state residents and educators are seeking an expan-
    10  sion of financial resources, charitable giving for educational  purposes

    11  should be encouraged;
    12    c.  Permitting  public education entities such as school districts and
    13  individual public schools, including  charter  schools,  to  accept  and
    14  receive voluntary cash contributions will be beneficial to taxpayers and
    15  educators;
    16    d.  Encouraging voluntary support for education, without prejudice for
    17  or against any state-sanctioned  educational  enterprise,  promotes  the
    18  state's interest in providing the highest quality education to all chil-
    19  dren in the state;
    20    e.  The  intended beneficiaries of the tax credit provided in this act
    21  are the students who attend public schools, including  charter  schools,
    22  students  who  further  their educations using tuition scholarships from
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

                                                                   LBD00834-04-3

        S. 4099--A                          2
 
     1  educational scholarship organizations, and students who  participate  in
     2  home-based educational programs;
     3    f.  Permitting  school personnel to claim a credit for the purchase of
     4  classroom instructional materials  and  supplies  will  insure  a  wider
     5  availability of such materials and supplies for all students.
     6    §  3.    The  tax law is amended by adding a new section 39 to read as
     7  follows:
     8    § 39. Education investment tax  credit.    (a)  Definitions.  For  the
     9  purposes  of  this section, the following terms shall have the following
    10  meanings:
    11    1. "Authorized contribution" means the  contribution  amount  that  is

    12  listed  on  the  contribution  authorization  certificate  issued to the
    13  taxpayer.
    14    2. "Contribution" means a donation paid  by  cash,  check,  electronic
    15  funds  transfer,  debit card or credit card that is made by the taxpayer
    16  during the taxable year.
    17    3. "Educational program" means an academic or  similar  program  of  a
    18  public  school  that  enhances the curriculum or academic program of the
    19  public school, or provides a  pre-kindergarten  program  to  the  public
    20  school.  For  purposes  of  this definition, the instruction, materials,
    21  programs and other activities  offered  by  or  through  an  educational
    22  program may include, but are not limited to, the following features: (i)

    23  instruction or materials promoting health, physical education, and fami-
    24  ly  and  consumer  sciences; literary, performing and visual arts; math-
    25  ematics, social studies, technology  and  scientific  achievement;  (ii)
    26  instruction  or  programming  to  meet  the  education  needs of at-risk
    27  students or students with  disabilities,  including  tutoring  or  coun-
    28  seling;  (iii)  instruction or programming before or after public school
    29  hours, or on weekends that improves student academic achievement includ-
    30  ing preparation for college or a career; or (iv) the use of  specialized
    31  instructional  materials,  instructors  or instruction not provided by a
    32  public school.
    33    4. "Educational scholarship organization" means an entity that (i)  is

    34  exempt  from taxation under paragraph three of subsection (c) of section
    35  five hundred one of the internal revenue code, (ii) uses at least ninety
    36  percent of the qualified contributions received during the last month of
    37  the immediately preceding calendar year and the first eleven  months  of
    38  the  calendar  year  and any income derived from qualified contributions
    39  during such months for scholarships, (iii) provides scholarships without
    40  limiting availability to only eligible pupils of one  qualified  school,
    41  (iv)  deposits  and holds qualified contributions and any income derived
    42  from qualified contributions in an account that  is  separate  from  the
    43  organization's  operating  or  other funds until such qualified contrib-

    44  utions or income are withdrawn for use, and (v)  is  approved  to  issue
    45  certificates of receipt pursuant to article twenty-five of the education
    46  law.
    47    5. "Eligible pupil" means a child who is (i) a resident of this state,
    48  (ii)  of  school age in accordance with subdivision one of section thir-
    49  ty-two hundred two of the education law or who is four years of  age  on
    50  or  before December first of the year in which such child is enrolled in
    51  a pre-kindergarten program, and (iii) attends or is about  to  attend  a
    52  qualified school.
    53    6.  "Local  education fund" means a not-for-profit entity which (i) is
    54  exempt from taxation under paragraph three of subsection (c) of  section

    55  five  hundred  one of the internal revenue code, (ii) is established for
    56  the purpose of supporting at least one public school or a public  school

        S. 4099--A                          3
 
     1  district  located  in  this state, (iii) uses at least ninety percent of
     2  the qualified contributions received during the last month of the  imme-
     3  diately  preceding  calendar  year  and  the  first eleven months of the
     4  calendar year and any income derived from qualified contributions during
     5  such  months  to  support  the public school or schools or public school
     6  district or districts that such fund has been  established  to  support,
     7  (iv)  deposits  and holds qualified contributions and any income derived

     8  from qualified contributions in an account that  is  separate  from  the
     9  fund's  operating  or  other funds until such qualified contributions or
    10  income are withdrawn for use, and (v) is approved to issue  certificates
    11  of receipt pursuant to article twenty-five of the education law.
    12    7.  "Non-public  school"  means  any  not-for-profit  pre-kindergarten
    13  program or elementary or secondary sectarian or nonsectarian  school  in
    14  this state, other than a public school, that provides instruction at one
    15  or  more locations to eligible pupils in accordance with subdivision two
    16  of section thirty-two hundred four of the education law.
    17    8. "Public education entity" means  (i)  a  school  district  in  this

    18  state, (ii) a public school in this state, or (iii) a school improvement
    19  organization,  provided  that  such  school  district,  public school or
    20  school improvement organization deposits and  holds  qualified  contrib-
    21  utions and any income derived from qualified contributions in an account
    22  that  is  separate  from  the  public school or public school district's
    23  operating or other funds until such qualified  contributions  or  income
    24  are  withdrawn  for use from operating or other funds and is approved to
    25  issue certificates of receipt pursuant to  article  twenty-five  of  the
    26  education law.
    27    9.  "Public  school"  means any free elementary or secondary school in
    28  this state pursuant to article eleven of the constitution, and a charter

    29  school authorized by article fifty-six of the education law.
    30    10. "Qualified contribution" means the authorized contribution made by
    31  a taxpayer to a public education entity, local education fund, or educa-
    32  tional scholarship organization listed in the contribution authorization
    33  certificate issued to the taxpayer for which the taxpayer has received a
    34  certificate of receipt from such entity, fund or organization.
    35    11. "Qualified  educator"  means  an  individual  who  is  a  teacher,
    36  instructor,  counselor,  principal, or aide in a qualified school for at
    37  least nine hundred hours during a school year.
    38    12. "Qualified school" means a  public  school  or  non-public  school
    39  located in this state.

    40    13.  "Scholarship"  means  an educational scholarship or tuition grant
    41  awarded to an eligible pupil to  attend  a  qualified  school  of  their
    42  parents'  choice  in  an  amount  not to exceed the tuition necessary to
    43  attend such school; provided, however, in the case of an eligible  pupil
    44  attending  a  public  school  in a district of which such pupil is not a
    45  resident, the amount of the educational  scholarship  or  tuition  grant
    46  awarded may not exceed the tuition charged by the public school pursuant
    47  to  paragraph d of subdivision four of section thirty-two hundred two of
    48  the education law, but only if the school district of which  such  pupil
    49  is a resident is not required to pay for such tuition.

    50    14.  "School  improvement  organization" means a not-for-profit entity
    51  which (i) is exempt from taxation under paragraph  three  of  subsection
    52  (c)  of section five hundred one of the internal revenue code, (ii) uses
    53  at least ninety percent of the qualified contributions  received  during
    54  the  last month of the immediately preceding calendar year and the first
    55  eleven months of the calendar year and any income derived from qualified
    56  contributions during such months to  assist  public  schools  or  public

        S. 4099--A                          4
 
     1  school districts located in this state in their provision of educational
     2  programs,  either  by making contributions to one or more public schools

     3  or public school districts located in this  state  or  providing  educa-
     4  tional  programs  to, or in conjunction with, one or more public schools
     5  or public school districts located in this  state,  (iii)  deposits  and
     6  holds  qualified  contributions  and  any  income derived from qualified
     7  contributions in an account that is  separate  from  the  organization's
     8  operating  or  other  funds until such qualified contributions or income
     9  are withdrawn for use, and (iv) is approved  to  issue  certificates  of
    10  receipt pursuant to, article twenty-five of the education law. Such term
    11  includes a pre-kindergarten program or not-for-profit entity that allows
    12  the  taxpayer  to  choose  to donate to a program, project or initiative

    13  identified by a qualified educator for use in a public school.
    14    (b) Allowance of credit. A  taxpayer  subject  to  tax  under  article
    15  nine-A, twenty-two, thirty-two, or thirty-three of this chapter shall be
    16  allowed an education investment tax credit against such tax, pursuant to
    17  the  provisions  referenced  in  subdivision  (m)  of this section, with
    18  respect to qualified contributions for which  the  application  require-
    19  ments  of subdivision (f) and the certification requirements of subdivi-
    20  sions (g) and (h) of this section have been met; provided, however, that
    21  if the taxpayer claimed a deduction  pursuant  to  section  one  hundred
    22  seventy  of  this chapter for such qualified contributions, the taxpayer

    23  shall not be allowed to claim both a credit and  a  deduction  for  such
    24  qualified  contributions.  The commissioner shall maintain a list of the
    25  public education entities, local education funds and educational  schol-
    26  arship  organizations  that  are  authorized  to  issue  certificates of
    27  receipt pursuant to article twenty-five of the education law.
    28    (c) Amount of credit. The amount of the credit shall equal the sum  of
    29  the  credit  components  specified  in  paragraphs one, two and three of
    30  subdivision (d) of this section for the taxable year; provided, however,
    31  that the amount of credit for qualified contributions shall  not  exceed
    32  the lesser of (i) the sum of such credit components, (ii) the taxpayer's

    33  tax  liability  for the immediately preceding taxable year, or (iii) the
    34  credit limitation prescribed by subdivision (i) of this section. When  a
    35  qualified  contribution is made by a partnership, any direct or indirect
    36  partner in such partnership  who  or  which  is  taxable  under  article
    37  nine-A,  twenty-two, thirty-two or thirty-three of this chapter shall be
    38  a taxpayer under this paragraph and allowed a  pro  rata  share  of  the
    39  credit  against such tax. When a qualified contribution is made by a New
    40  York S corporation, any shareholder in such New York S  corporation  who
    41  is  taxable under article twenty-two of this chapter shall be a taxpayer
    42  under this paragraph and allowed a pro rata share of the credit  against
    43  such tax.

    44    (d)  Credit  components.  1. Public education entity credit component.
    45  The public education entity credit component shall equal the sum of  the
    46  qualified contributions made to a public education entity or entities by
    47  the  taxpayer  during  the taxable year, as listed on the certificate or
    48  certificates of receipt provided to the taxpayer, for which the taxpayer
    49  has received a contribution authorization certificate; provided,  howev-
    50  er,  that  a  taxpayer  shall  not  be  allowed credit for any qualified
    51  contributions that are for the direct benefit of any particular student;
    52  and, provided further that the taxpayer shall not be allowed credit  for
    53  qualified  contributions  for which the taxpayer claimed a federal item-

    54  ized deduction unless the taxpayer adds back the amount of the  itemized
    55  deduction  pursuant  to  section  two hundred eight, six hundred twelve,
    56  fourteen hundred fifty-three or fifteen hundred three of this chapter.

        S. 4099--A                          5
 
     1    2. Local education fund credit component.  The  local  education  fund
     2  credit component shall equal the sum of the qualified contributions made
     3  to  a  local  education fund or funds by the taxpayer during the taxable
     4  year, as listed on the certificate or certificates of  receipt  provided
     5  to  the  taxpayer,  for  which  the taxpayer has received a contribution
     6  authorization certificate; provided, however, that a taxpayer shall  not

     7  be  allowed  credit  for  any  qualified  contributions that are for the
     8  direct benefit of any particular student; and, provided further that the
     9  taxpayer shall not be allowed credit  for  qualified  contributions  for
    10  which  the  taxpayer  claimed  a  federal  itemized deduction unless the
    11  taxpayer adds back the amount of  the  itemized  deduction  pursuant  to
    12  section  two  hundred eight, six hundred twelve, fourteen hundred fifty-
    13  three or fifteen hundred three of this chapter.
    14    3. Educational scholarship organization credit component.  The  educa-
    15  tional  scholarship  organization  credit  component shall be the sum of
    16  qualified contributions made to an educational scholarship  organization

    17  or  organizations  by the taxpayer during the taxable year, as listed on
    18  the certificate or certificates of receipt provided to the taxpayer, for
    19  which the taxpayer has received  a  contribution  authorization  certif-
    20  icate;  provided,  however,  that a taxpayer shall not be allowed credit
    21  for any qualified contributions that are for the direct benefit  of  any
    22  particular student; and, provided further that the taxpayer shall not be
    23  allowed  credit  for  qualified  contributions  for  which  the taxpayer
    24  claimed a federal itemized deduction unless the taxpayer adds  back  the
    25  amount  of the itemized deduction pursuant to section two hundred eight,
    26  six hundred twelve, fourteen  hundred  fifty-three  or  fifteen  hundred
    27  three of this chapter.

    28    (e)  Contribution  authorization  certificate; requirement. A taxpayer
    29  shall not be allowed a credit pursuant to this section for any  contrib-
    30  ution to a public education entity, local education fund, or educational
    31  scholarship  organization  that was made prior to the department's issu-
    32  ance of a contribution authorization certificate for  such  contribution
    33  to the taxpayer. A taxpayer may be issued multiple contribution authori-
    34  zation  certificates by the department, provided that the taxpayer makes
    35  an application for each such certificate.
    36    (f) Applications for contribution authorization certificates. Prior to
    37  making a contribution to a  public  education  entity,  local  education

    38  fund,  or educational scholarship organization, the taxpayer shall apply
    39  for a contribution  authorization  certificate  for  such  contribution.
    40  Taxpayers  that  want  to  make  more  than one contribution to a public
    41  education entity,  local  education  fund,  or  educational  scholarship
    42  organization  or  contribute  to  more than one public education entity,
    43  local education fund, or educational scholarship organization, must make
    44  a separate application for each such contribution authorization  certif-
    45  icate.  Such  application  shall be in the form and manner prescribed by
    46  the department, provided that such application includes (i) the  taxpay-
    47  er's  name  and address, (ii) the name and address of each public educa-

    48  tion entity, local education fund, or educational scholarship  organiza-
    49  tion  that  will  receive  a  contribution  from the taxpayer, (iii) the
    50  amount that the taxpayer will contribute to such entity, fund or  organ-
    51  ization,  and  (iv)  any  other  information that the commissioner deems
    52  necessary; provided, however, that the aggregate amount  of  credit  for
    53  which  a  taxpayer  may  apply  cannot exceed the lesser of seventy-five
    54  percent of the taxpayer's liability for  the  taxable  year  immediately
    55  preceding  the year for which the taxpayer is making the application for
    56  a credit authorization certificate or five percent of the credit cap set

        S. 4099--A                          6
 

     1  forth in subdivision (j) of  this  section.  The  department  may  allow
     2  taxpayers  to make multiple applications on the same form, provided that
     3  each application shall be treated as a separate application.
     4    (g)  Contribution  authorization  certificates. 1. Issuance of certif-
     5  icates. The commissioner shall issue contribution authorization  certif-
     6  icates  in  two  phases.  In phase one, which begins on the first day of
     7  January and ends on the fourteenth  day  of  January,  the  commissioner
     8  shall  not  issue  any  credit  authorization  certificates.  After  the
     9  fifteenth day of January, the commissioner shall issue  credit  authori-
    10  zation certificates for applications received during phase one, provided

    11  that  if  the  aggregate total of the authorized contributions for which
    12  applications have been filed during phase  one  exceeds  the  amount  of
    13  credit  available,  the  authorized  contribution  amount listed in each
    14  credit authorization certificate shall equal the pro-rata share  of  the
    15  available  credit.  In  phase  two,  the commissioner shall issue credit
    16  authorization certificates on a first-come first serve basis based  upon
    17  the  date  that  the  department received the taxpayer's application for
    18  such certificate; provided, however, that if on any day  the  department
    19  receives  applications  for  which the aggregate total of the authorized
    20  credit sought in such applications exceeds the amount of  credit  avail-

    21  able  on  such  day,  the  authorized contribution amount listed in each
    22  credit authorization certificate shall be the taxpayer's pro-rata  share
    23  of  the available credit.  For purposes of determining a taxpayer's pro-
    24  rata share of available credit,  the  commissioner  shall  multiply  the
    25  amount  of available credit by a fraction, the numerator of which equals
    26  the authorized credit amount listed on the  taxpayer's  application  and
    27  the denominator of which equals the aggregate amount of authorized cred-
    28  it sought in all of the affected applications.
    29    2.  Contribution authorization certificate limits. A taxpayer's aggre-
    30  gate authorized contribution amount as listed on one or more  authorized

    31  contribution  certificates  issued to the taxpayer, shall not exceed the
    32  lesser of (i) seventy-five percent of such taxpayer's tax liability  for
    33  the  immediately preceding taxable year, (ii) five percent of the credit
    34  cap set forth in subdivision (j) of this section for the calendar  year,
    35  or  (iii) the aggregate of the amounts listed on the taxpayer's applica-
    36  tions submitted in accordance with subdivision (f) of this section.
    37    3. Contribution authorization certificate contents. Each  contribution
    38  authorization  certificate shall state (i) the date such certificate was
    39  issued, (ii) the date by which the authorized  contributions  listed  in
    40  the certificate must be made, which shall be sixty days from the date of

    41  the issuance of credit authorization certificate, (iii) the taxable year
    42  for  which  credit may be claimed by the taxpayer, (iv) the total amount
    43  of authorized contributions, (v) the name and address of the educational
    44  scholarship organization, public education  entity  or  local  education
    45  fund  to  which the taxpayer may make an authorized contribution and the
    46  amount of such authorized contribution, and (vi) any  other  information
    47  that  the  commissioner  deems  necessary.  Issued  credit authorization
    48  certificates shall be mailed to the appropriate taxpayers  within  three
    49  business days of their issuance.
    50    4.  Notification  of  the  issuance  of  a  contribution authorization

    51  certificate. Within fifteen days  of  the  issuance  of  a  contribution
    52  authorization certificate, the commissioner shall notify the educational
    53  scholarship  organization,  public  education entity, or local education
    54  fund of the issuance of the contribution  authorization  certificate  to
    55  the  taxpayer.  Such  notification shall include (i) the taxpayer's name
    56  and address, (ii) the date such certificate was issued, (iii)  the  date

        S. 4099--A                          7
 
     1  by  which the authorized contribution listed in the notification must be
     2  contributed, (iv) the amount of the authorized contribution, and (v) any
     3  other information that the commissioner deems necessary.

     4    5.  Disclosure  of  remaining credit available. The commissioner shall
     5  maintain on the department's website a running total of  the  amount  of
     6  credits  for  which  taxpayers  may  make  application  for contribution
     7  authorization certification. Such running total shall be  updated  on  a
     8  daily basis.
     9    (h) Certificate of receipt. 1. In general. No public education entity,
    10  local  education  fund,  or  educational  scholarship organization shall
    11  issue a certificate of receipt for any contribution made by  a  taxpayer
    12  unless  such  public  education  entity, local education fund, or educa-
    13  tional scholarship organization has been approved to issue  certificates
    14  of  receipt  pursuant  to  article  twenty-five of the education law. No

    15  public education entity, local education fund, or  educational  scholar-
    16  ship  organization  shall  issue a certificate of receipt for a contrib-
    17  ution made by a taxpayer unless  such  public  education  entity,  local
    18  education  fund,  or  educational  scholarship organization has received
    19  notice from the department that the department issued a credit  authori-
    20  zation certificate to the taxpayer for such contribution.
    21    2.  Timely  contribution.  If  a  taxpayer makes a contribution to the
    22  public education entity, local education fund, or  educational  scholar-
    23  ship  organization  set  forth  on  the credit authorization certificate
    24  issued to the taxpayer by the department prior to the date by which such

    25  authorized contribution shall be made,  such  public  education  entity,
    26  local  education  fund,  or  educational scholarship organization shall,
    27  within thirty days of receipt of the authorized contribution,  issue  to
    28  the  taxpayer  a written certificate of receipt; provided, however, that
    29  the amount of the qualified contribution listed on such  certificate  of
    30  receipt  shall  not  exceed  the  lesser  of the authorized contribution
    31  amount or the amount of the contribution; and provided, further, that if
    32  the taxpayer has been issued more than one credit authorization  certif-
    33  icate  for  such contributions, the amount of the qualified contribution
    34  listed on such certificate of receipt shall not exceed the lesser of the

    35  aggregate of the amount of the authorized contributions or the amount of
    36  contributions.
    37    3. Untimely contribution. If a taxpayer fails to make  a  contribution
    38  to  the  public  education  entity, local education fund, or educational
    39  scholarship organization listed in the authorized  contribution  certif-
    40  icate  issued  to  the  taxpayer  in  an  amount equal to the authorized
    41  contribution amount listed in such certificate  prior  to  the  date  by
    42  which  such authorized contribution is required to be made, the taxpayer
    43  shall not be entitled to a certificate of receipt.
    44    4. Certificate of receipt contents. Each certificate of receipt  shall
    45  state  (i)  the name and address of the issuing public education entity,

    46  local education fund, or educational scholarship organization, (ii)  the
    47  taxpayer's  name and address, (iii) the date for each qualified contrib-
    48  ution, (iv) the amount of each qualified  contribution,  (v)  the  total
    49  qualified  contribution  amount, and (vi) any other information that the
    50  commissioner may deem necessary.
    51    5. Notification to the department for the issuance of a certificate of
    52  receipt. Upon the issuance of a  certificate  of  receipt,  the  issuing
    53  public  education  entity, local education fund, or educational scholar-
    54  ship organization shall, within thirty days if issuing  the  certificate
    55  of  receipt, provide the department with notification of the issuance of

    56  such certificate in the form and manner prescribed  by  the  department,

        S. 4099--A                          8
 
     1  provided  that  such  notification shall include (i) the taxpayer's name
     2  and address, (ii) the date of the issuance of a certificate of  receipt,
     3  (iii)  the qualified contribution date or dates and the amounts contrib-
     4  uted on such dates, (iv) the total qualified contribution listed on such
     5  certificate,  (v)  the  issuing public education entity, local education
     6  fund or educational scholarship organization's  name  and  address,  and
     7  (vi) any other information that the commissioner may deem necessary.
     8    6. Notification to the department of the non-issuance of a certificate

     9  of  receipt.  Each  public  education  entity,  local education fund, or
    10  educational scholarship organization that received notification from the
    11  department pursuant to subdivision (g) of  this  section  regarding  the
    12  issuance  of  a  contribution  authorization  certificate  to a taxpayer
    13  shall, within thirty days of the expiration  date  for  such  authorized
    14  contribution,  provide  notification to the department for each taxpayer
    15  that failed, in whole or in part, to make the authorized contribution to
    16  such public education entity, local education fund, or educational scho-
    17  larship organization in the form and manner prescribed  by  the  depart-
    18  ment;  provided  that such notification shall include (i) the taxpayer's

    19  name and address, (ii) the  date  that  the  contribution  authorization
    20  certificate  was  issued,  (iii)  the authorized contribution amount set
    21  forth on such certificate, (iv) the amount of any qualified contribution
    22  made by the taxpayer, (v) the amount of the authorized contribution  for
    23  which  the  taxpayer did not make a contribution, (vi) the public educa-
    24  tion entity, local education fund, or educational scholarship  organiza-
    25  tion's  name  and  address,  and  (vii)  any  other information that the
    26  commissioner may deem necessary.
    27    7. Any amounts for which the department receives notification of  non-
    28  issuance  of  a  certificate  of  receipt  shall  be  added  to  the cap

    29  prescribed in subdivision  (j)  of  this  section  for  the  immediately
    30  following year.
    31    (i)  Credit  limitation.  The maximum amount of credit that a taxpayer
    32  may claim for a taxable year shall not exceed the lesser of  (i)  seven-
    33  ty-five  percent  of  the taxpayer's tax due for the taxable year, after
    34  application of any other allowable credits by the  taxpayer,  (ii)  five
    35  percent  of  the credit cap set forth in subdivision (j) of this section
    36  for the calendar year, or (iii) the aggregate amount of  the  taxpayer's
    37  authorized  contributions  that  are listed on the contribution authori-
    38  zation certificates issued to the taxpayer for the taxable year plus any
    39  amount of credit carried from a preceding taxable year.   Any credit  in

    40  excess  of  this limitation may be carried over to the following year or
    41  years and may be deducted from the  taxpayer's  tax  for  such  year  or
    42  years.
    43    (j)  Credit  cap.  The  maximum  permitted  credits under this section
    44  available to all taxpayers for qualified contributions to public  educa-
    45  tion entities, local education funds, and educational scholarship organ-
    46  izations  for  calendar  year two thousand fourteen shall be two hundred
    47  fifty million dollars. In calendar year two thousand fifteen and  there-
    48  after, the maximum permitted credits under this section available to all
    49  taxpayers  shall  be  three  hundred  million, plus any amounts that are
    50  required to be added to the cap pursuant to this subdivision. The  maxi-

    51  mum  permitted  credits  under  this section for qualified contributions
    52  shall be allocated fifty percent to public education entities and  local
    53  education  funds  and fifty percent to educational scholarship organiza-
    54  tions.
    55    (k)  Other  requirements;  miscellaneous.  (1)  Record  keeping.  Each
    56  taxpayer shall, for each taxable year for which the education investment

        S. 4099--A                          9
 
     1  tax  credit provided for under this section is claimed, maintain records
     2  of the following information:  (i)  contribution  authorization  certif-
     3  icates  obtained  pursuant  to subdivision (g) of this section, and (ii)
     4  certificates  of  receipt  obtained  pursuant to subdivision (h) of this

     5  section.
     6    (2) Regulations. The commissioner is hereby authorized  to  promulgate
     7  and  adopt on an emergency basis regulations necessary for the implemen-
     8  tation of this section. Such regulations shall construe  the  provisions
     9  of  this  section  in  such  a manner as to encourage qualified contrib-
    10  utions, provided that such regulations shall not impose any new require-
    11  ment or burden on the educational program, instruction, or activities of
    12  a public or non-public school.
    13    (l) Reports. (1) Reports to the commissioner. On or  before  the  last
    14  day  of  February  for each calendar year, each public education entity,
    15  local education fund,  and  educational  scholarship  organization  that

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

    26  report shall contain statistical information, by tax type, regarding the
    27  number of applications received, the  number  of  contribution  authori-
    28  zation  certificates  issued for contributions to public education enti-
    29  ties and qualified local education funds,  the  number  of  contribution
    30  authorization certificates issued for authorized contributions to quali-
    31  fied  scholarship  organizations,  the  aggregate  amount  of authorized
    32  contributions for public education entities and qualified  local  educa-
    33  tion  funds, the aggregate amount of authorized contributions for educa-
    34  tional scholarship organizations, the geographical distribution by coun-
    35  ty of the applications for contribution authorization certificates,  the

    36  geographical  distribution by county of public education entities, local
    37  education funds, and educational  scholarship  organizations  for  which
    38  contribution   authorization   certificates  were  issued;  information,
    39  including geographical distribution by county, of the number of eligible
    40  pupils that received  scholarships,  the  number  of  qualified  schools
    41  attended  by  eligible  pupils  that received such scholarships, and the
    42  average value of scholarships received  by  such  eligible  pupils.  The
    43  commissioner  and  designated  employees of the department, the board of
    44  regents and all members of the board of regents, including  the  commis-
    45  sioner of education and designated employees of the department of educa-

    46  tion,  shall  be allowed and are directed to share and exchange informa-
    47  tion regarding the credits applied for, allowed or claimed  pursuant  to
    48  this  section;  the  taxpayers  who  are applying for credits or who are
    49  claiming credits, including information contained  in  or  derived  from
    50  credit claim forms submitted to the department; and the public education
    51  entities,  local  education  funds and educational scholarship organiza-
    52  tions that applied for approval to be authorized  to  receive  qualified
    53  contributions  and  who  were approved to be authorized to issue certif-
    54  icates of receipt, including information contained in  or  derived  from
    55  application  forms  submitted to the department of education or board of
    56  regents.

        S. 4099--A                         10
 
     1    (m) Cross references. For application of the credit  provided  for  in
     2  this section, see the following provisions of this chapter:
     3    (1) Article 9-14: section 210; subdivision 47;
     4    (2) Article 22: section 606; subsections (i) and (w); and section 615;
     5  subsection (g);
     6    (3) Article 32: section 1456; subsection (aa);
     7    (4) Article 33: section 1511; subdivision (dd).
     8    §  4.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
     9  amended by adding a new subparagraph 21 to read as follows:
    10    (21) The amount of any  deduction  allowed  pursuant  to  section  one
    11  hundred seventy of the internal revenue code for which credit is claimed

    12  pursuant  to  subdivision forty-seven of section two hundred ten of this
    13  chapter.
    14    § 5. Section 210 of the tax law is amended by adding a new subdivision
    15  47 to read as follows:
    16    47. Education investment  tax  credit.  (a)  Allowance  of  credit.  A
    17  taxpayer  shall  be  allowed  a  credit,  to  be computed as provided in
    18  section thirty-nine of this chapter, against the  tax  imposed  by  this
    19  article.
    20    (b)  Application  of credit. The credit allowed under this subdivision
    21  for any taxable year shall not reduce the tax due for that year to  less
    22  than  the  higher  of the amounts prescribed in paragraphs (c) or (d) of
    23  subdivision one of this  section.  However,  if  the  amount  of  credit

    24  allowed under this subdivision for qualified contributions for any taxa-
    25  ble  year  reduces the tax to such amount, any amount of credit thus not
    26  deductible in such taxable year may be carried over  to  the  succeeding
    27  five  years and may be deducted from the taxpayer's tax for such year or
    28  years.
    29    § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    30  of  the  tax  law  is  amended by adding a new clause (xxxvi) to read as
    31  follows:
    32  (xxxvi) Education investment         Amount of credit under subdivision
    33  tax credit under subsection (ww)     forty-seven of section two hundred
    34                                       ten or subsection (aa) of section
    35                                       fourteen hundred fifty-six

    36    § 7. Section 606  of  the  tax  law  is  amended  by  adding  two  new
    37  subsections (w) and (w-1) to read as follows:
    38    (w)  Home-based instructional materials credit.  (1) For taxable years
    39  beginning on or after January first, two thousand fourteen,  a  taxpayer
    40  shall  be  allowed  a credit against the tax imposed by this article for
    41  the purchase of instructional materials approved by  the  department  of
    42  education  or  board  of regents for use in non-public home-based educa-
    43  tional programs; provided, that the amount of credit  claimed  does  not
    44  exceed  the  lesser of one hundred dollars or one hundred percent of the
    45  cost of such purchases made by the taxpayer during the taxable year.
    46    (2) A husband and wife who file separate returns for a taxable year in

    47  which they could have filed a joint return may each claim only  one-half
    48  of the tax credit that would have been allowed for a joint return.
    49    (3)  If the allowable tax credit exceeds the taxes otherwise due under
    50  this article on the taxpayer's income, or if  there  are  no  taxes  due
    51  under  this article, the taxpayer may carry the amount of the credit not
    52  used to offset the taxes under this article forward for  not  more  than
    53  five years' income tax liability.
    54    (w-1)  Instructional  materials and supplies credit. For taxable years
    55  beginning on and after January first, two thousand fourteen, a  taxpayer
    56  shall  be allowed a credit in the amount paid by the taxpayer during the

        S. 4099--A                         11
 

     1  taxable year for instructional materials and supplies  with  respect  to
     2  classroom  based  instruction  in  a  qualified  school,  or one hundred
     3  dollars, whichever is less; provided that the  taxpayer  is  a  teacher,
     4  instructor,  counselor,  principal,  or  aide  in a qualified school, as
     5  defined in section thirty-nine  of  this  chapter,  for  at  least  nine
     6  hundred hours during a school year. For purposes of this subsection, the
     7  term "materials and supplies" means amounts paid for instructional mate-
     8  rials or supplies that are designated for classroom use in any qualified
     9  school.
    10    §  8. Section 606 of the tax law is amended by adding a new subsection
    11  (ww) to read as follows:

    12    (ww) Education investment tax  credit.  (1)  Allowance  of  credit.  A
    13  taxpayer shall be allowed a credit to be computed as provided in section
    14  thirty-nine of this chapter, against the tax imposed by this article.
    15    (2)  Application  of credit. If the amount of the credit allowed under
    16  this subsection for any qualified contributions  for  any  taxable  year
    17  exceeds the taxpayer's tax for such year, the excess may be carried over
    18  to the succeeding five years and may be deducted from the taxpayer's tax
    19  for such year or years.
    20    § 9. Subsection (g) of section 615 of the tax law is amended by adding
    21  a new paragraph 3 to read as follows:
    22    (3)  With  respect  to  an  individual  who  has claimed the education

    23  investment tax credit for qualified contributions pursuant  to  subdivi-
    24  sion (ww) of section six hundred six of this article, the taxpayer's New
    25  York  itemized deduction shall be reduced by any charitable contribution
    26  deduction allowed under section one  hundred  seventy  of  the  internal
    27  revenue code with respect to such qualified contributions.
    28    §  10.  Section  1456  of  the  tax  law  is  amended  by adding a new
    29  subsection (aa) to read as follows:
    30    (aa) Education investment tax  credit.  (1)  Allowance  of  credit.  A
    31  taxpayer shall be allowed a credit to be computed as provided in section
    32  thirty-nine of this chapter, against the tax imposed by this article.
    33    (2)  Application of credit. In no event shall the credit allowed under

    34  this section be allowed in an amount which will reduce the tax  to  less
    35  than the minimum tax fixed by subsection (b) of section fourteen hundred
    36  fifty-five  of  this  article. If, however, the amount of credit for any
    37  qualified contributions for any taxable year reduces  the  tax  to  such
    38  amount,  the excess may be carried over to the succeeding five years and
    39  may be deducted from the taxpayer's tax for such year or years.
    40    § 11. Subsection (b) of section 1453 of the  tax  law  is  amended  by
    41  adding a new paragraph 16 to read as follows:
    42    (16)  The  amount  of  any  deduction  allowed pursuant to section one
    43  hundred seventy of the internal revenue code for which credit is claimed
    44  pursuant to section fourteen hundred fifty-six of this article.

    45    § 12. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
    46  amended by adding a new subparagraph (W) to read as follows:
    47    (W) The amount of  any  deduction  allowed  pursuant  to  section  one
    48  hundred seventy of the internal revenue code for which credit is claimed
    49  pursuant to section fifteen hundred eleven of this article.
    50    §  13. Section 1511 of the tax law is amended by adding a new subdivi-
    51  sion (dd) to read as follows:
    52    (dd) Education investment tax  credit.  (1)  Allowance  of  credit.  A
    53  taxpayer shall be allowed a credit to be computed as provided in section
    54  thirty-nine of this chapter, against the tax imposed by this article.
    55    (2)  Application  of credit. The credit allowed under this subdivision

    56  for any taxable year shall not reduce the tax due for such year to  less

        S. 4099--A                         12
 
     1  than  the  minimum fixed by paragraph four of subdivision (a) of section
     2  fifteen hundred two or by section fifteen hundred two-a of this article,
     3  whichever is applicable. However, if the amount of credit allowed  under
     4  this  subdivision  for  any qualified contributions for any taxable year
     5  reduces the tax to such amount, the excess may be carried  over  to  the
     6  succeeding  five  years  and may be deducted from the taxpayer's tax for
     7  such year or years.
     8    § 14. 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. Annual review.
    19          1215. Revocation of approval to issue certificates of receipt.
    20          1216. Reporting and recordkeeping.
    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; (c) instruction or programming before  or  after  public  school
    43  hours, or on weekends that improves student academic achievement includ-
    44  ing    preparation  for  college  or a career; or (d) use of specialized
    45  instructional materials, instructors or instruction not  provided  by  a
    46  public school.

    47    (4)  "Educational  scholarship  organization"  means  a not-for-profit
    48  entity which (i) is  exempt  from  taxation  under  paragraph  three  of
    49  subsection (c) of section five hundred one of the internal revenue code,
    50  (ii) uses at least ninety percent of the revenue from qualified contrib-
    51  utions  received  during  the  last  month  of the immediately preceding
    52  calendar year and the first eleven months of the calendar year  and  any
    53  income derived from qualified contributions during such months for scho-
    54  larships,  (iii)  deposits  and  holds  qualified  contributions and any
    55  income derived from qualified contributions in an account that is  sepa-
    56  rate  from the organization's operating or other funds until such quali-


        S. 4099--A                         13
 
     1  fied contributions or income are withdrawn for use,  and  (iv)  provides
     2  scholarships  without  limiting  availability to only eligible pupils of
     3  one qualified school.
     4    (5)  "Eligible  pupil"  means  a  child  who (i) is a resident of this
     5  state, (ii) is school age in accordance with subdivision one of  section
     6  thirty-two hundred two of this chapter or who is four years of age on or
     7  before  December  first of the year in which they are enrolled in a pre-
     8  kindergarten program, and (iii) attends or is about to attend  a  quali-
     9  fied school.
    10    (6)  "Local education fund" means a not-for-profit entity which (i) is
    11  exempt from taxation under paragraph three of subsection (c) of  section

    12  five  hundred  one of the internal revenue code, (ii) is established for
    13  the purpose of supporting at least one public school, or a public school
    14  district located in this state, (iii) uses at least  ninety  percent  of
    15  the  qualified contributions received during the last month of the imme-
    16  diately preceding calendar year and  the  first  eleven  months  of  the
    17  calendar year and any income derived from qualified contributions during
    18  such  months  to  support  the public school or schools or public school
    19  district or districts that such fund has been  established  to  support,
    20  and  (iv)  deposits  and  holds  qualified  contributions and any income
    21  derived from qualified contributions in an account that is separate from

    22  the fund's operating or other funds until such  qualified  contributions
    23  or income are withdrawn for use.
    24    (7)  "Nonpublic  school"  means  any  not-for-profit  pre-kindergarten
    25  program or elementary, secondary sectarian or nonsectarian school, other
    26  than a public school, that is providing instruction to an eligible pupil
    27  in accordance with subdivision two of section thirty-two hundred four of
    28  this chapter.
    29    (8) "Public education entity" means a public school district  in  this
    30  state,  a public school in this state, or a school improvement organiza-
    31  tion, provided that such public school district, public school or school
    32  improvement organization deposits and holds qualified contributions  and

    33  any  income  derived  from qualified contributions in an account that is
    34  separate from the public school or public school district's operating or
    35  other funds until such qualified contributions or income  are  withdrawn
    36  for  use  from operating or other funds and is approved to issue certif-
    37  icates of receipt pursuant to this article.
    38    (9) "Public school" means any free elementary or secondary  school  in
    39  this  state  pursuant  to article eleven of the New York constitution or
    40  charter school authorized by article fifty-six of this chapter.
    41    (10) "Qualified contribution" means the authorized  contribution  made
    42  by  a  taxpayer  to  a public education entity, local education fund, or

    43  educational scholarship organization listed in the contribution authori-
    44  zation certificate issued to the taxpayer for  which  the  taxpayer  has
    45  received  a  certificate of receipt from such entity, fund, or organiza-
    46  tion.
    47    (11) "Qualified educator"  means  an  individual  who  is  a  teacher,
    48  instructor,  counselor,  principal, or aide in a qualified school for at
    49  least nine hundred hours during a school year.
    50    (12) "Qualified school" means a  public  school  or  nonpublic  school
    51  located in this state.
    52    (13)  "Scholarship"  means an educational scholarship or tuition grant
    53  awarded to an eligible pupil to  attend  a  qualified  school  of  their
    54  parents'  choice  in  an  amount  not to exceed the tuition necessary to

    55  attend such school; provided, however, in the case of an eligible  pupil
    56  attending  a  public  school  in a district of which such pupil is not a

        S. 4099--A                         14
 
     1  resident, the amount of the educational  scholarship  or  tuition  grant
     2  awarded may not exceed the tuition charged by the public school pursuant
     3  to  paragraph d of subdivision four of section thirty-two hundred two of
     4  this  chapter,  but only if the school district of which such pupil is a
     5  resident is not required to pay for such tuition.
     6    (14) "School improvement organization" means a  not-for-profit  entity
     7  that (i) is exempt from taxation under paragraph three of subsection (c)

     8  of  section  five hundred one of the internal revenue code, (ii) uses at
     9  least ninety percent of the qualified contributions received during  the
    10  last  month  of  the  immediately  preceding calendar year and the first
    11  eleven months of the calendar year and any income derived from qualified
    12  contributions during such months to  assist  public  schools  or  public
    13  school districts located in this state in their provision of educational
    14  programs,  either  by making contributions to one or more public schools
    15  or public school districts located in this  state  or  providing  educa-
    16  tional  programs  to, or in conjunction with, one or more public schools
    17  or public school districts located in this state, and (iii) deposits and

    18  holds qualified contributions and  any  income  derived  from  qualified
    19  contributions  in  an  account  that is separate from the organization's
    20  operating or other funds until such qualified  contributions  or  income
    21  are withdrawn for use.  Such term includes a pre-kindergarten program or
    22  not-for-profit  entity that allows the taxpayer to choose to donate to a
    23  program, project or initiative identified by a  qualified  educator  for
    24  use in a public school.
    25    §  1211. Approval to issue certificates of receipt. (1) Public schools
    26  and public school  districts.  All  public  schools  and  public  school
    27  districts  shall be approved to issue certificates of receipt for quali-

    28  fied contributions in accordance with section  thirty-nine  of  the  tax
    29  law,  provided,  that such public school or public school district shall
    30  not be approved if either  (i)  such  public  school  or  public  school
    31  district  fails  to  deposit  and  hold  qualified contributions and any
    32  income derived from qualified contributions in an account that is  sepa-
    33  rate from the school or school district's operating or other funds until
    34  such  qualified  contributions  or income are withdrawn for use, or (ii)
    35  the commissioner has not revoked such approval for such public school or
    36  public school district pursuant to section  twelve  hundred  sixteen  of
    37  this article.
    38    (2)  School  improvement organizations, educational scholarship organ-

    39  izations and local education funds. No school improvement  organization,
    40  educational scholarship organization or local education fund shall issue
    41  any  certificates  of  receipt without filing an application pursuant to
    42  section twelve hundred twelve and receiving approval pursuant to section
    43  twelve hundred thirteen of this article.
    44    § 1212. Applications for approval to issue  certificates  of  receipt.
    45  1.  School  improvement organizations. A school improvement organization
    46  shall submit an  application  for  approval  to  issue  certificates  of
    47  receipt  in the form and manner prescribed by the commissioner, provided
    48  that such  application  shall  include  (i)  submission  of  documentary

    49  evidence  that  such  school  improvement  organization has been granted
    50  exemption from taxation under  paragraph  three  of  subsection  (c)  of
    51  section  five  hundred  one  of  the internal revenue code, (ii) certif-
    52  ication that all qualified contributions and  any  income  derived  from
    53  qualified  contributions  are  deposited  and held in an account that is
    54  separate from the fund's operating or other funds until  such  qualified
    55  contributions  or income are withdrawn for use, (iii) certification that
    56  such school improvement organization will use at least ninety percent of

        S. 4099--A                         15
 
     1  the qualified contributions received during the last month of the  imme-

     2  diately  preceding  calendar  year  and  the  first eleven months of the
     3  calendar year and any income derived from qualified contributions during
     4  such  months to assist public schools or public school districts in this
     5  state in the provision of their educational programs by making  contrib-
     6  utions  to  one  or  more  public schools or public school districts, or
     7  providing educational programs to, or in conjunction with, one  or  more
     8  public  schools  or  public  school districts located in this state, and
     9  (iv) a list of the names and addresses of all members of  the  governing
    10  board of the school improvement organization.
    11    2.  Educational  scholarship organizations. An educational scholarship

    12  organization shall submit an application for approval to  issue  certif-
    13  icates of receipt in the form and manner prescribed by the commissioner,
    14  provided  that such application shall include (i) submission of documen-
    15  tary evidence that such educational scholarship  organization  has  been
    16  granted  exemption from taxation under paragraph three of subsection (c)
    17  of section five hundred one of the internal revenue code,  (ii)  certif-
    18  ication  that  all  qualified  contributions and any income derived from
    19  qualified contributions are deposited and held in  an  account  that  is
    20  separate  from  the fund's operating or other funds until such qualified
    21  contributions or income are withdrawn for use, (iii) certification  that

    22  such organization will use at least ninety percent of its annual revenue
    23  from qualified contributions received during the last month of the imme-
    24  diately  preceding  calendar  year  and  the  first eleven months of the
    25  calendar year and any income derived from qualified contributions during
    26  such months for scholarships, (iv) certification that such  organization
    27  will provide scholarships to eligible pupils without limiting availabil-
    28  ity  to  only eligible pupils of one qualified school, and (v) a list of
    29  the names and addresses of all members of the governing  board  of  such
    30  educational scholarship organization.
    31    3.  Local  education  funds.  A  local  education fund shall submit an

    32  application for approval to issue certificates of receipt  in  the  form
    33  and  manner  prescribed by the commissioner, provided that such applica-
    34  tion shall include (i) submission  of  documentary  evidence  that  such
    35  educational  scholarship  organization  has  been granted exemption from
    36  taxation under paragraph three of subsection (c) of section five hundred
    37  one of the internal revenue code, (ii)  documentation  that  such  local
    38  education  fund  has  been  established  to  support at least one public
    39  school or public school district, (iii) the name of each  public  school
    40  or  public  school  district  that  is  either  supported  by or will be
    41  supported by such local education fund,  (iv)  certification  that  such

    42  fund  will  use  at  least ninety percent of the qualified contributions
    43  received during the last month of  the  immediately  preceding  calendar
    44  year  and  the  first  eleven months of the calendar year and any income
    45  derived from qualified contributions during such months to  support  the
    46  public  school  or  schools  or public school district or districts that
    47  such fund has been established to support, and  (v)  certification  that
    48  such  fund  will deposit and hold qualified contributions and any income
    49  derived from qualified contributions in an account that is separate from
    50  the fund's operating or other funds until such  qualified  contributions
    51  or income are withdrawn for use.

    52    §  1213.  Application  approval. 1. In general.   The board of regents
    53  shall review each application to determine whether the  applicant  would
    54  be  entitled  to  approval  to issue certificates of receipt pursuant to
    55  this article.  Approval or denial of an application shall be made at the
    56  next scheduled meeting of the board of regents, provided,  however  that

        S. 4099--A                         16
 
     1  if  it is not practicable for the board to review an application that is
     2  received less than three days before a scheduled meeting, the board  may
     3  review  such an application at the immediately following scheduled meet-
     4  ing.
     5    2. Notification. Applicants shall be notified of the board of regents'

     6  determination within three business days of the board's determination.
     7    §  1214.  Annual  review.  1. School improvement organizations, educa-
     8  tional scholarship organizations, and local education funds. Each school
     9  improvement organization, educational scholarship organization or  local
    10  education  fund  that received approval to issue certificates of receipt
    11  shall file an application for recertification on an annual  basis.  Such
    12  application  for  recertification  shall  be  in  the  form  and  manner
    13  prescribed by the department and shall include: (i)  certification  from
    14  the  director  or  chief executive officer of the organization or entity
    15  that such organization  or  entity  has  complied  with  the  applicable

    16  reporting requirements of section twelve hundred sixteen of this article
    17  and  subdivision  (l) of section thirty-nine of the tax law, (ii) a copy
    18  of the organization or fund's federal form 990  or  other  federal  form
    19  indicating  tax  status  of  the  organization  or  fund for federal tax
    20  purposes, (iii) certification that such organization  or  fund  used  at
    21  least  ninety percent of the qualified contributions received during the
    22  last month of the immediately preceding  calendar  year  and  the  first
    23  eleven months of the calendar year and any income derived from qualified
    24  contributions during such months to, in the case of a school improvement
    25  organization,  assist  in  the  provision  of educational programs in at

    26  least one public school or public school district, or in the case of  an
    27  educational  scholarship  organization, provide scholarships to eligible
    28  students, or in the case of a local education fund, support at least one
    29  public school or public school district, (iv)  certification  that  such
    30  organization  or fund deposited and held all qualified contributions and
    31  any income derived from qualified contributions are deposited  and  held
    32  in an account that is separate from the organization or fund's operating
    33  or  other  funds  until such qualified contributions or income are with-
    34  drawn for use, and (v) a copy of the  organization's  current  financial
    35  statements.   For purposes of determining a taxpayer's pro-rata share of

    36  available credit, the commissioner shall multiply the amount  of  avail-
    37  able  credit by a fraction, the numerator of which equals the authorized
    38  credit amount listed on the taxpayer's application and  the  denominator
    39  of  which equals the aggregate amount of authorized credit sought in all
    40  of the affected applications.
    41    2. Public schools and public school districts. Each public  school  or
    42  public school district shall file an annual certification with the board
    43  of  regents  in the form and manner prescribed by the board. Such annual
    44  certification shall include (i) certification that such public school or
    45  public school  district  has  complied  with  the  applicable  reporting

    46  requirements  of  section  twelve  hundred  sixteen  of this article and
    47  subdivision (l) of section thirty-nine of the tax law, and (ii)  certif-
    48  ication  that  such public school or public school district deposits and
    49  holds qualified contributions and  any  income  derived  from  qualified
    50  contributions  in  an account that is separate from the public school or
    51  public school district's operating or other funds until  such  qualified
    52  contributions or income are withdrawn for use.
    53    §  1215.  Revocation of approval to issue certificates of receipt. The
    54  board of regents, in consultation with the commissioner of taxation  and
    55  finance,  may  revoke the approval of a school improvement organization,

    56  educational  scholarship  organization,  local  education  fund,  public

        S. 4099--A                         17
 
     1  school or public school district to issue certificates of receipt upon a
     2  finding  that  such  organization,  fund,  school or school district has
     3  violated this article or section  thirty-nine  of  the  tax  law.  These
     4  violations  shall  include, but not be limited to, any of the following:
     5  (1) failure to meet the requirements of this article, (2) the failure to
     6  maintain full and adequate records with respect to the receipt of quali-
     7  fied contributions, (3) the  failure  to  supply  such  records  to  the
     8  department or the board of regents, or (4) the failure to provide notice

     9  to  the  department  of  taxation and finance of the issuance of certif-
    10  icates of receipt pursuant to section thirty-nine of the tax law.  With-
    11  in five days of the determination revoking  approval,  the  commissioner
    12  shall  provide  notice of such revocation to the educational scholarship
    13  organization, school improvement  organization,  local  education  fund,
    14  public school, or public school district.
    15    §  1216.  Reporting  and  recordkeeping. 1. Reporting. (a) Educational
    16  scholarship  organizations,  school  improvement  organizations,   local
    17  education funds, public schools and public school districts.
    18    (i)  An  educational  scholarship organization that receives qualified

    19  contributions shall report to the board of regents, on a form prescribed
    20  by the commissioner by January thirty-first of each calendar year.  Such
    21  report  shall  include:  (a) the name and address of the members and the
    22  chairperson of the governing board of the organization,  (b)  the  total
    23  number  of certificates of receipt issued during the immediately preced-
    24  ing calendar year, (c) the total dollar  amount  of  qualified  contrib-
    25  utions  received,  as set forth in certificates of receipt issued during
    26  the immediately preceding calendar year, (d) the total number of  eligi-
    27  ble pupils utilizing scholarships for the immediately preceding calendar
    28  year  and  the school year in progress and the total dollar value of the

    29  scholarships, (e) the name and address of each qualified school at which
    30  scholarships are currently  being  utilized,  detailing  the  number  of
    31  eligible  pupils  and  the  total  dollar  value  of  scholarships being
    32  utilized at each qualified school, and (f)  any  additional  information
    33  requested by the commissioner or board of regents.
    34    (ii)   A  school  improvement  organization  that  receives  qualified
    35  contributions shall report to the department or board of regents,  on  a
    36  form  prescribed  by  the  commissioner  by January thirty-first of each
    37  calendar year. Such report shall include: (a) the name  and  address  of
    38  the  members and the chairperson of the governing board of the organiza-

    39  tion, (b) the total number of certificates of receipt issued during  the
    40  immediately  preceding  calendar  year,  (c)  the total dollar amount of
    41  qualified contributions received, as set forth in  the  certificates  of
    42  receipt  issued  during  the  immediately preceding calendar year, (d) a
    43  list of the educational programs that were provided to public schools or
    44  public school districts during the  immediately preceding calendar  year
    45  through  qualified  contributions,  including the geographic location of
    46  such programs by county and any additional information requested by  the
    47  commissioner.
    48    (iii)  A  local  education  fund that receives qualified contributions
    49  pursuant to this article shall report to the department or the board  of

    50  regents,  on  a  form  prescribed by the commissioner by January thirty-
    51  first of each calendar year. Such report shall include:   (a)  the  name
    52  and address of the members and the chairperson of the governing board of
    53  the organization, (b) the total number of certificates of receipt issued
    54  during  the  immediately  preceding  calendar year, (c) the total dollar
    55  amount of qualified contributions received as set forth in  the  certif-
    56  icates of receipt issued during the immediately preceding calendar year,

        S. 4099--A                         18
 
     1  and  (d)  the  name  and  address of the public schools or public school
     2  districts that the local education fund supported during the immediately

     3  preceding calendar year and any additional information requested by  the
     4  commissioner.
     5    (iv) A public school district or public school that receives qualified
     6  contributions shall report to the commissioner or board of regents, on a
     7  form  prescribed  by  the  commissioner  by January thirty-first of each
     8  calendar year. Such report  shall  include:  (a)  the  total  number  of
     9  certificates of receipt issued during the immediately preceding calendar
    10  year, (b) the total dollar amount of qualified contributions received as
    11  set  forth  in  the  certificates  of receipt issued during the previous
    12  calendar year, and (c)  any  additional  information  requested  by  the
    13  commissioner or board of regents.

    14    (b)  Joint  annual  report.  On or before the last day of May for each
    15  calendar year, the commissioner of taxation and finance and the  commis-
    16  sioner,  jointly, shall submit a written report as provided in paragraph
    17  two of subdivision (1) of section thirty-nine of the tax law.
    18    2. Recordkeeping. Each educational  scholarship  organization,  school
    19  improvement organization, local education fund, public school and public
    20  school  district  that  is  authorized  to issue certificates of receipt
    21  shall maintain full and adequate records of the  following  information:
    22  (a)  credit  authorization  certificates  received  in  accordance  with
    23  section thirty-nine of the tax law,  (b)  the  certificates  of  receipt

    24  issued  to  taxpayers  in accordance with section thirty-nine of the tax
    25  law, and (c) any information as the commissioner or the board of regents
    26  may prescribe.
    27    § 1217. Commissioner; powers. The commissioner shall promulgate on  an
    28  emergency  basis  regulations  necessary  for the implementation of this
    29  section. Such regulations shall construe the provisions of this  section
    30  in  such  a  manner  as  to encourage qualified contributions; provided,
    31  however, that such regulations shall not impose any new  requirement  or
    32  burden on the educational program, instruction or activities of a public
    33  or non-public school; and provided, further, that the commissioner shall
    34  make  any  application  required  to  be  filed pursuant to this article

    35  available to applicants within sixty days of the effective date of  this
    36  article.
    37    § 15. This act shall not be construed to authorize the commissioner of
    38  education  or  the  commissioner  of  taxation and finance to impose any
    39  regulation or requirement on the  educational  program,  instruction  or
    40  activities  of  an  eligible  non-public school that receives funding on
    41  behalf of an eligible pupil from an educational scholarship organization
    42  pursuant to this act, unless specifically authorized by this act.
    43    § 16. Severability. If any provision of this section or  the  applica-
    44  tion  thereof to any person or circumstances is held invalid, such inva-
    45  lidity shall not affect other provisions or applications of the  section
    46  which  can be given effect without the invalid provision or application,

    47  and to this end the provisions of this section are declared to be sever-
    48  able.
    49    § 17. This act shall take effect immediately and shall apply to  taxa-
    50  ble years beginning after December 31, 2013.
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