Directs the commissioner of taxation and finance to help entities to elect to participate in the federal tax credit for elementary and secondary scholarships known as the Educational Choice for Children Act of 2025.
STATE OF NEW YORK
________________________________________________________________________
9494
IN SENATE
March 18, 2026
___________
Introduced by Sen. CHAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to directing the commissioner
of taxation and finance to help entities elect to participate in the
federal tax credit for elementary and secondary scholarships
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative intent. This legislation is intended to elect
2 participation by the State of New York in the federal Educational Choice
3 for Children Act of 2025. The federal legislation would help all
4 students attending public and non-public schools with a household income
5 not higher than 300% of area gross median income to cover educational
6 expenses including: fees, tutoring, transportation, technologies and
7 other expenses. Under the federal law a tax credit of up to $1,700 is
8 available for a taxpayer that donates to a scholarship granting organ-
9 ization, which funds would be directed to students in states that have
10 opted into the program. Without opting into the program children in New
11 York would be prohibited from receiving such scholarship funds, which
12 would otherwise be available to children in other states.
13 The legislature pursuant to section 1 of Article III of the New York
14 State Constitution voluntarily elects that the State of New York partic-
15 ipate in the federal tax credit program established under 26 USC § 25 F
16 for taxpayers who make qualified contributions to scholarship granting
17 organizations within this state and designate the Commissioner of the
18 Department of Taxation and Finance to identify such scholarship granting
19 organizations located in this state.
20 § 2. Section 171 of the tax law is amended by adding a new subdivision
21 twenty-ninth to read as follows:
22 Twenty-ninth. The commissioner shall annually submit to the United
23 States secretary of the treasury and publish on the department's website
24 a list of all scholarship granting organizations located in this state
25 that meet the requirements of 26 USC § 25F and any regulations or appli-
26 cable guidance issued by the United States secretary of the treasury to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15100-01-6
S. 9494 2
1 ensure eligibility to participate beginning in taxable years after
2 December thirty-first, two thousand twenty-six. The commissioner shall
3 establish rules or regulations necessary for an entity to demonstrate
4 that it qualifies as a scholarship granting organization pursuant to 26
5 USC § 25F. The commissioner shall inform the public of this scholarship
6 granting program and the benefits of such program.
7 § 3. This act shall take effect immediately.
