Clarifies that the board of regents is the sole entity responsible for electing to have the state participate in the federal qualified elementary and secondary education scholarships program pursuant to 26 U.S.C. Section 25F and that the board of regents is the sole entity to determine what entities are qualified scholarship granting organizations; prohibits the commissioner of taxation and finance from electing, or taking any action to implement an election or participate in the federal scholarship tax credit program established under 26 U.S.C. Section 25F unless the board of regents has elected on behalf of the state to participate in such program.
STATE OF NEW YORK
________________________________________________________________________
10734
IN SENATE
November 9, 2026
___________
Introduced by Sens. LIU, BRISPORT, JACKSON, KRUEGER -- read twice and
ordered printed, and when printed to be committed to the Committee on
Rules
AN ACT to amend the education law, in relation to the election to
participate in the federal education tax credit program; and to amend
the tax law, in relation to the powers of the commissioner of taxation
and finance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The education law is amended by adding a new section 101-c
2 to read as follows:
3 § 101-c. Participation in the federal scholarship tax credit program.
4 1. Notwithstanding any provision of law to the contrary, the board of
5 regents is designated under state law as the sole entity authorized to
6 make the election on behalf of the state with respect to federal tax
7 benefits under 26 U.S.C. § 25F, including to elect whether the state
8 shall participate in the federal qualified elementary and secondary
9 education scholarships program pursuant to 26 U.S.C. § 25F, or any
10 successor program, and shall be the sole entity to determine and provide
11 the state's list of qualified scholarship granting organizations to the
12 Secretary of the Treasury pursuant to 26 U.S.C. § 25F (g)(1).
13 2. No other state officer, employee, board, department, commission or
14 other entity shall be authorized under state law to make an election on
15 behalf of the state to participate in the federal tax credit program
16 established under 26 U.S.C. § 25F. Any election made by a state officer,
17 employee, board, department, commission or any entity other than the
18 board of regents is void and shall have no effect.
19 § 2. Section 171 of the tax law is amended by adding a new subdivision
20 twenty-ninth to read as follows:
21 Twenty-ninth. Notwithstanding any other provision of law, the commis-
22 sioner shall not elect, or take any action to implement an election on
23 behalf of the state, to participate in the federal scholarship tax cred-
24 it program established under 26 U.S.C. § 25F unless the board of regents
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16390-02-6
S. 10734 2
1 has elected on behalf of the state to participate in such program pursu-
2 ant to section one hundred one-c of the education law.
3 § 3. The board of regents may promulgate any and all rules and regu-
4 lations and take any other measures necessary to implement this act on
5 on or before its effective date.
6 § 4. This act shall take effect immediately and shall apply to taxable
7 years commencing on and after January 1, 2028.
