A02551 Summary:

BILL NOA02551A
 
SAME ASNo Same As
 
SPONSORCusick
 
COSPNSRCrespo, Simanowitz, Thiele, Markey, Malliotakis, Benedetto, Kearns, Hevesi, Perry, Curran, Weprin, Rozic, Rodriguez, DenDekker, Gjonaj, Miller, Skartados, Saladino, Fitzpatrick, Arroyo, Titone, Hikind, McDonald, Brabenec, Giglio, Otis, Finch, Wozniak, Gantt, Lawrence, Moya
 
MLTSPNSRBlankenbush, Braunstein, Colton, Cook, Corwin, Cymbrowitz, Davila, Garbarino, Goodell, Graf, Hawley, Katz, Kolb, Lalor, Lentol, Lopez, McLaughlin, Montesano, Oaks, Ortiz, Palmesano, Palumbo, Peoples-Stokes, Pichardo, Pretlow, Ra, Schimminger, Simotas, Solages, Stec, Tenney, Titus, Weinstein
 
Add 42, amd 208, 210-B, 606 & 615, Tax L; add Art 25 1209 - 1217, 1503-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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A02551 Actions:

BILL NOA02551A
 
01/16/2015referred to ways and means
01/06/2016referred to ways and means
03/03/2016amend and recommit to ways and means
03/03/2016print number 2551a
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A02551 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2551A
 
SPONSOR: Cusick (MS)
  TITLE OF BILL: An act to amend the tax law and the education law, in relation to enacting the "education investment incentives act"   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 42 to the Tax Law, which is the education investment tax credit. New section 2 provides a tax credit 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 December 31st 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 maximum amount of credit that a taxpayer may list in the application filed with DTF is up to $1 million, which also is the maximum amount of aggregate credits that a taxpayer may claim for any year, after the application 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 2017, $225 million for calendar year 2018, 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 2019. 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." An "eligible student" who can receive a scholarship must reside in a household with not more than $250,000 in adjusted gross income; however, to ensure the needs of low-income communities are addressed, on educational scholarship organ- ization must provide at least half its scholarships for students from households with income below 150% of the reduced-price lunch income thresholds. 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 (22) 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-B(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-B to add a new subdivision (49) 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 (xli) 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 (ccc) 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(kk), 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 42, 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, 2016.   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: 2013-2014: A.1826-D-Died in Ways and Means Committee; 2011-12: A.5081-C-Died in Ways and Means Committee.   FISCAL IMPLICATIONS: $150 million for fiscal year 2017-18, $225 million for fiscal year 2018-19, and $300 million for fiscal year 2019-2020 and annually there- after. This bill would generate $400 million in voluntary contributions to support K-12 education in New York State based on the credit equaling 75 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, 2016.
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A02551 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2551--A
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 16, 2015
                                       ___________
 
        Introduced  by  M.  of  A.  CUSICK,  CRESPO, SIMANOWITZ, THIELE, MARKEY,
          MALLIOTAKIS, GOLDFEDER,  BENEDETTO,  KEARNS,  HEVESI,  PERRY,  CURRAN,
          WEPRIN,  ROZIC, RODRIGUEZ, DenDEKKER, GJONAJ, MILLER, SKARTADOS, SALA-
          DINO, FITZPATRICK, ARROYO, TITONE, HIKIND, McDONALD, BRABENEC, GIGLIO,
          OTIS, FINCH, WOZNIAK, GANTT, LAWRENCE, MOYA -- Multi-Sponsored  by  --
          M.  of A.   BLANKENBUSH, BRAUNSTEIN, COLTON, COOK, CORWIN, CYMBROWITZ,
          DAVILA, GARBARINO, GOODELL, GRAF, HAWLEY, KATZ, KOLB,  LALOR,  LENTOL,
          LOPEZ,  McLAUGHLIN, MONTESANO, NOJAY, OAKS, ORTIZ, PALMESANO, PALUMBO,
          PEOPLES-STOKES, PICHARDO, PRETLOW, RA, SCHIMMINGER, SIMOTAS,  SOLAGES,
          STEC,  TENNEY,  TITUS,  WEINSTEIN  --  read  once  and referred to the
          Committee on Ways and Means -- recommitted to the  Committee  on  Ways
          and  Means  in  accordance  with  Assembly Rule 3, sec. 2 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        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;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07511-02-6

        A. 2551--A                          2
 
     1    c.  Permitting  public education entities such as school districts and
     2  individual public schools to accept and receive voluntary cash  contrib-
     3  utions will be beneficial to students, taxpayers and educators;
     4    d.  Encouraging voluntary support for education, without prejudice for
     5  or against any state-sanctioned  educational  enterprise,  promotes  the
     6  state's interest in providing the highest quality education to all chil-
     7  dren in the state;
     8    e.  The  tax credit provided in this act is merely one of many credits
     9  available to New York taxpayers;
    10    f. The intended beneficiaries of the tax credits provided in this  act
    11  are  the  students who attend public schools, students who further their
    12  education using tuition scholarships from educational scholarship organ-
    13  izations, and teachers who purchase with personal funds to supply  their
    14  students and classrooms, and who seek charitable donations for classroom
    15  projects and initiatives;
    16    g.  Permitting  educators to claim a credit for the purchase of class-
    17  room instructional materials and supplies will insure a wider availabil-
    18  ity of such materials and supplies for all students.
    19    § 3.  The tax law is amended by adding a new section  42  to  read  as
    20  follows:
    21    §  42.  Education  investment  tax  credit.   (a) Definitions. For the
    22  purposes of this section, the following terms shall have  the  following
    23  meanings:
    24    1.  "Authorized  contribution"  means  the contribution amount that is
    25  listed on the  contribution  authorization  certificate  issued  to  the
    26  taxpayer.
    27    2.  "Contribution"  means  a  donation paid by cash, check, electronic
    28  funds transfer, debit card or credit card that is made by  the  taxpayer
    29  during the taxable year.
    30    3.  "Educational program" means an academic program of a public school
    31  that enhances the curriculum or academic program of the  public  school,
    32  or provides a pre-kindergarten program or an after school program to the
    33  public school. For purposes of this definition, the instruction, materi-
    34  als,  programs and other activities offered by or through an educational
    35  program may include, but are not limited to, the following features: (i)
    36  instruction or materials promoting health, physical education, and fami-
    37  ly and consumer sciences; literary, performing and  visual  arts;  math-
    38  ematics,  social  studies,  technology  and scientific achievement; (ii)
    39  instruction or programming  to  meet  the  education  needs  of  at-risk
    40  students  or  students  with  disabilities,  including tutoring or coun-
    41  seling;  or  (iii)  the  use  of  specialized  instructional  materials,
    42  instructors or instruction not provided by a public school.
    43    4.  "Educational scholarship organization" means an entity that (i) is
    44  exempt from taxation under paragraph three of subsection (c) of  section
    45  five  hundred  one  of  the  internal revenue code, (ii) commits for the
    46  expenditure of at least ninety percent of  the  qualified  contributions
    47  received during the calendar year and any income derived from such qual-
    48  ified  contributions  for  scholarships,  (iii) provides more than fifty
    49  percent of its scholarships during a calendar year  to  eligible  pupils
    50  who  reside  in a household that has an income not to exceed one hundred
    51  fifty percent of the income qualification required for the reduced price
    52  school lunches under the National School Lunch  Act,  provided  however,
    53  for  the  purposes of an educational scholarship organization fulfilling
    54  such requirement, an educational scholarship organization may enter into
    55  an agreement with another educational scholarship organization or organ-
    56  izations to jointly report their scholarship information  to  meet  such

        A. 2551--A                          3

     1  requirement,  (iv)  provides  scholarships to eligible pupils for use at
     2  not fewer than three non-public schools, (v) deposits and  holds  quali-
     3  fied  contributions  and any income derived from qualified contributions
     4  in  an  account  that  is  separate from the organization's operating or
     5  other funds until such qualified contributions or income  are  withdrawn
     6  for  use,  and  (vi) is approved to receive authorized contributions and
     7  issue certificates of receipt pursuant to  article  twenty-five  of  the
     8  education law.
     9    5.  "Eligible  pupil"  means a child who (i) is a resident, (ii) is of
    10  school age in accordance with  subdivision  one  of  section  thirty-two
    11  hundred  two  of  the  education  law  or who is four years of age on or
    12  before December first of the year in which such child is enrolled  in  a
    13  pre-kindergarten  program,  (iii) attends or is about to attend a quali-
    14  fied school, and (iv) resides in a household that has a federal adjusted
    15  gross income of two hundred fifty thousand  dollars  or  less,  provided
    16  however,  for  households  with  three  or more dependent children, such
    17  income level shall be increased by ten thousand  dollars  per  dependent
    18  child  in  excess  of two children, not to exceed three hundred thousand
    19  dollars.
    20    6. "Local education fund" means a not-for-profit entity which  (i)  is
    21  exempt  from taxation under paragraph three of subsection (c) of section
    22  five hundred one of the internal revenue code, (ii) is  established  for
    23  the  purpose of supporting at least one public school or a public school
    24  district, (iii) uses at least ninety percent of the  qualified  contrib-
    25  utions  received  during  the  calendar year and any income derived from
    26  such qualified contributions to support the public school or schools  or
    27  public  school district or districts that such fund has been established
    28  to support, (iv) deposits and  holds  qualified  contributions  and  any
    29  income  derived from qualified contributions in an account that is sepa-
    30  rate from the fund's operating  or  other  funds  until  such  qualified
    31  contributions  or  income  are withdrawn for use, and (v) is approved to
    32  receive authorized  contributions  and  issue  certificates  of  receipt
    33  pursuant to article twenty-five of the education law.
    34    7.  "Non-public  school"  means  any  not-for-profit  pre-kindergarten
    35  program or elementary or  secondary  sectarian  or  nonsectarian  school
    36  located  in  this  state,  other  than  a  public  school, that provides
    37  instruction at one or more locations  to  students  in  accordance  with
    38  subdivision two of section thirty-two hundred four of the education law.
    39    8.  "Public education entity" means a public school or a public school
    40  district, provided that such public school or public school district (i)
    41  deposits and holds qualified contributions and any income  derived  from
    42  such  qualified  contributions  in  an account that is separate from the
    43  public school or public school district's operating or other funds until
    44  such qualified contributions or income are withdrawn for use and (ii) is
    45  approved to issue certificates of receipt pursuant  to  article  twenty-
    46  five of the education law.
    47    9.  "Public  school"  means any free elementary or secondary school in
    48  this state pursuant to article eleven of the constitution, but shall not
    49  include a charter school authorized by article fifty-six of  the  educa-
    50  tion law.
    51    10. "Qualified contribution" means the authorized contribution made by
    52  a  taxpayer  to  a public education entity, school improvement organiza-
    53  tion, local education fund, or educational scholarship organization  for
    54  which  the contribution authorization certificate has been issued to the
    55  taxpayer for which the taxpayer has received a  certificate  of  receipt
    56  from  such entity, fund or organization. A contribution does not qualify

        A. 2551--A                          4
 
     1  if the taxpayer designates the taxpayer's contribution to an  entity  or
     2  organization  for  the  direct  benefit  of  any particular or specified
     3  student.
     4    11.  "Qualified  educator"  means  an  individual  who is a teacher or
     5  instructor in a qualified school for at least nine hundred hours  during
     6  a school year.
     7    12.  "Qualified  school"  means  a  public school or non-public school
     8  located in this state.
     9    13. "Scholarship" means an educational scholarship  which  provides  a
    10  tuition  grant awarded to an eligible pupil to attend a qualified school
    11  in an amount not to exceed the tuition charged  to  attend  such  school
    12  less any other educational scholarship or tuition grant received by such
    13  eligible  pupil  or his or her parent, parents, legal guardian, or legal
    14  guardians for such eligible pupil's tuition; provided, however,  in  the
    15  case  of  an  eligible  pupil attending a public school in a district of
    16  which such pupil is not a resident, the amount of the educational schol-
    17  arship awarded may not exceed the tuition charged by the  public  school
    18  pursuant  to  paragraph  d  of  subdivision  four  of section thirty-two
    19  hundred two of the education law, but only if  the  school  district  of
    20  which such pupil is a resident is not required to pay for such tuition.
    21    14.  "School  improvement  organization" means a not-for-profit entity
    22  which (i) is exempt from taxation under paragraph  three  of  subsection
    23  (c)  of section five hundred one of the internal revenue code, (ii) uses
    24  at least ninety percent of the qualified contributions  received  during
    25  the  calendar  year  and any income derived from qualified contributions
    26  during such months to assist public schools or public  school  districts
    27  located in this state in their provision of educational programs, either
    28  by  making  contributions to one or more public schools or public school
    29  districts located in this state or providing educational programs to, or
    30  in conjunction with,  one  or  more  public  schools  or  public  school
    31  districts  located  in  this  state,  (iii) deposits and holds qualified
    32  contributions and any income derived from qualified contributions in  an
    33  account  that  is  separate  from  the organization's operating or other
    34  funds until such qualified contributions or  income  are  withdrawn  for
    35  use,  and  (iv) is approved to issue certificates of receipt pursuant to
    36  article twenty-five of the education law. Such term includes a  pre-kin-
    37  dergarten  program  or not-for-profit entity that allows the taxpayer to
    38  choose to donate to a program, project or  initiative  identified  by  a
    39  qualified educator for use in a public school.
    40    (b)  Allowance  of  credit.  A  taxpayer  subject to tax under article
    41  nine-A or twenty-two of this  chapter  shall  be  allowed  an  education
    42  investment  tax  credit  against  such  tax,  pursuant to the provisions
    43  referenced in subdivision (l) of this section, with respect to qualified
    44  contributions made during the taxable year.
    45    (c) Amount of credit. The amount of the credit shall  be  seventy-five
    46  percent  of  the taxpayer's total qualified contributions, capped at one
    47  million dollars.  A taxpayer that is a partner in a partnership,  member
    48  of  a limited liability company or shareholder in an S corporation shall
    49  be allowed to claim its pro rata share of the credit earned by the part-
    50  nership, limited liability company or S corporation, provided that  such
    51  a taxpayer shall not claim credit in excess of the limit imposed by this
    52  subdivision.
    53    (d) Information to be posted on the department's website.  The commis-
    54  sioner shall maintain on the department's website a running total of the
    55  amount  of  available  credit  for which taxpayers may apply pursuant to
    56  this section.  Such running total shall be updated  on  a  daily  basis.

        A. 2551--A                          5
 
     1  Additionally,  the  commissioner  shall  maintain  on  the  department's
     2  website a list of the school improvement organizations, local  education
     3  funds  and  educational  scholarship  organizations  approved  to  issue
     4  certificates of receipt pursuant to article twenty-five of the education
     5  law.  The commissioner shall also maintain on the department's website a
     6  list  of  public  education  entities, school improvement organizations,
     7  local education funds and educational  scholarship  organizations  whose
     8  approval  to  issue  certificates of receipt has been revoked along with
     9  the date of revocation.
    10    (e) Applications for contribution authorization certificates. Prior to
    11  making a contribution to a public education entity,  school  improvement
    12  organization, local education fund, or educational scholarship organiza-
    13  tion,  the  taxpayer  shall  apply  to the department for a contribution
    14  authorization certificate for such contribution. Such application  shall
    15  be  in the form and manner prescribed by the department.  The department
    16  may allow taxpayers to make multiple  applications  on  the  same  form,
    17  provided  that  each  contribution  listed  on such application shall be
    18  treated as a separate application and that the  department  shall  issue
    19  separate  contribution authorization certificates for each such applica-
    20  tion.
    21    (f) Contribution authorization certificates. 1.  Issuance  of  certif-
    22  icates.  The commissioner shall issue contribution authorization certif-
    23  icates  in  two phases.   In phase one, which begins on the first day of
    24  January and ends on the thirty-first day of  January,  the  commissioner
    25  shall  accept  applications for contribution authorization certificates.
    26  Commencing after the fifth day of February, the commissioner shall issue
    27  contribution authorization certificates for applications received during
    28  phase one, provided that if the aggregate total of the contributions for
    29  which applications have been  received  during  phase  one  exceeds  the
    30  amount of the credit cap in subdivision (h) of this section, the author-
    31  ized  contribution  amount  listed  on  each  contribution authorization
    32  certificate shall equal the pro-rata share of the credit cap.    If  the
    33  credit  cap  is  not exceeded, phase two commences on February first and
    34  ends on December thirty-first. The commissioner shall issue contribution
    35  authorization certificates on a first-come, first serve basis based upon
    36  the date the department received the  taxpayer's  application  for  such
    37  certificate.    Contribution authorization certificates for applications
    38  received during phase one shall be mailed no later  than  the  twentieth
    39  day  of  February.  Contribution authorization certificates for applica-
    40  tions received during phase two shall be mailed within  twenty  days  of
    41  receipt  of  such applications.   Provided however, that no contribution
    42  authorization certificates for applications received  during  phase  two
    43  shall be issued until all of the contribution authorization certificates
    44  for applications received during phase one have been issued.
    45    2.  Contribution authorization certificate contents. Each contribution
    46  authorization certificate shall state (i) the date such certificate  was
    47  issued,  (ii)  the  date by which the authorized contributions listed in
    48  the certificate must be made, which shall  be  no  later  than  December
    49  thirty-first  of  the  year  for  which  the  contribution authorization
    50  certificate was issued, (iii) the taxpayer's name and address, (iv)  the
    51  amount  of  authorized contributions, (v) the contribution authorization
    52  certificate's certificate number, (vi)  the  name  and  address  of  the
    53  public  education  entity, school improvement organization, local educa-
    54  tion fund or educational scholarship organization for which the taxpayer
    55  may make the authorized contribution, and (vii)  any  other  information
    56  that the commissioner deems necessary.

        A. 2551--A                          6
 
     1    3.  Notification  of  the  issuance  of  a  contribution authorization
     2  certificate. Upon issuance of a contribution authorization  certificate,
     3  the  commissioner shall notify the educational scholarship organization,
     4  public education entity, school improvement organization or local educa-
     5  tion  fund of the issuance of the contribution authorization certificate
     6  to a taxpayer.  Such notification shall include (i) the taxpayer's  name
     7  and  address,  (ii) the date such certificate was issued, (iii) the date
     8  by which the authorized contribution listed in the notification must  be
     9  made  by  the  taxpayer, (iv) the amount of the authorized contribution,
    10  (v) contribution authorization certificate, and (vi) any other  informa-
    11  tion that the commissioner deems necessary.
    12    (g) Certificate of receipt. 1. In general. No public education entity,
    13  school  improvement  organization,  local education fund, or educational
    14  scholarship organization shall issue a certificate of  receipt  for  any
    15  contribution  made  by  a  taxpayer unless such public education entity,
    16  school improvement organization, local education  fund,  or  educational
    17  scholarship  organization  has  been  approved  to issue certificates of
    18  receipt pursuant to article twenty-five of the education law. No  public
    19  education entity, school improvement organization, local education fund,
    20  or  educational  scholarship  organization  shall issue a certificate of
    21  receipt for a contribution made by a taxpayer unless such public  educa-
    22  tion  entity,  school improvement organization, local education fund, or
    23  educational  scholarship  organization  has  received  notice  from  the
    24  department that the department issued a credit authorization certificate
    25  to the taxpayer for such contribution.
    26    2. Timely contribution. If a taxpayer makes an authorized contribution
    27  to  the  public education entity, school improvement organization, local
    28  education fund, or educational scholarship organization set forth on the
    29  authorization certificate issued to the taxpayer no later than the  date
    30  by  which  such  authorized  contribution  is  required to be made, such
    31  public education entity, school improvement organization,  local  educa-
    32  tion  fund, or educational scholarship organization shall, within thirty
    33  days of receipt of the authorized contribution, issue to the taxpayer  a
    34  written  certificate of receipt; provided, however, that if the taxpayer
    35  contributes an amount that is less than the amount listed on the taxpay-
    36  er's contribution authorization certificate, the taxpayer shall  not  be
    37  issued a certificate of receipt for such contribution.
    38    3.  Certificate of receipt contents. Each certificate of receipt shall
    39  state (i) the name and address of the issuing public  education  entity,
    40  school  improvement  organization,  local education fund, or educational
    41  scholarship organization, (ii) the taxpayer's name  and  address,  (iii)
    42  the date for each contribution, (iv) the amount of each contribution and
    43  the corresponding contribution authorization certificate number, (v) the
    44  total  amount  of contributions, and (vi) any other information that the
    45  commissioner may deem necessary.
    46    4. Notification to the department for the issuance of a certificate of
    47  receipt. Upon the issuance of a  certificate  of  receipt,  the  issuing
    48  public  education  entity, school improvement organization, local educa-
    49  tion fund, or educational scholarship organization shall, within  thirty
    50  days  of issuing the certificate of receipt, provide the department with
    51  notification of the issuance of such certificate in the form and  manner
    52  prescribed by the department.
    53    5. Notification to the department of the non-issuance of a certificate
    54  of  receipt.  Each public education entity, school improvement organiza-
    55  tion, local education fund, or educational scholarship organization that
    56  received notification from the department pursuant to subdivision (d) of

        A. 2551--A                          7
 
     1  this section regarding the  issuance  of  a  contribution  authorization
     2  certificate  to  a  taxpayer shall, within thirty days of the expiration
     3  date for such  authorized  contribution,  provide  notification  to  the
     4  department for each taxpayer that failed to make the authorized contrib-
     5  ution  to such public education entity, school improvement organization,
     6  local education fund, or educational  scholarship  organization  in  the
     7  form and manner prescribed by the department.
     8    6.  Failure  to notify the department. Within thirty days of discovery
     9  of the failure of any public education entity, school improvement organ-
    10  ization, local education fund, or educational  scholarship  organization
    11  to  comply  with  the notification requirements prescribed by paragraphs
    12  four and five of this subdivision, the commissioner shall issue a notice
    13  of compliance failure to such entity, program fund or organization. Such
    14  entity, program fund or organization shall have  thirty  days  from  the
    15  date  of  such notice to make the notifications prescribed by paragraphs
    16  four and five of this subdivision. Such period may be  extended  for  an
    17  additional  thirty  days upon the request of the entity, program fund or
    18  organization. Upon the expiration of the period for compliance set forth
    19  in the notice prescribed by this paragraph, the commissioner shall noti-
    20  fy the board of regents and the  commissioner  of  education  that  such
    21  entity,  program  fund  or organization failed to make the notifications
    22  prescribed by paragraphs four and five of this subdivision.
    23    (h) Credit cap. The  maximum  permitted  credits  under  this  section
    24  available to all taxpayers for qualified contributions for calendar year
    25  two  thousand  seventeen shall be one hundred fifty million dollars.  In
    26  calendar year two thousand eighteen, the maximum permitted credits under
    27  this section available to all taxpayers shall be two hundred twenty-five
    28  million dollars plus any amounts that are required to be  added  to  the
    29  cap  pursuant to subdivision (i) of this section.  For calendar year two
    30  thousand nineteen and each calendar year thereafter, the maximum permit-
    31  ted credits under this section available to all taxpayers shall be three
    32  hundred million dollars, plus any amounts that are required to be  added
    33  to  the  cap  pursuant  to subdivision (i) of this section.  The maximum
    34  permitted credits under this section for qualified  contributions  shall
    35  be allocated fifty percent to public education entities, school improve-
    36  ment  organizations,  and  local  education  funds  and fifty percent to
    37  educational scholarship organizations.
    38    (i) Additions to the credit cap. Unissued certificates of receipt. Any
    39  amounts for which the department receives notification  of  non-issuance
    40  of  a  certificate  of  receipt  shall be added to the cap prescribed in
    41  subdivision (h) of this section for the immediately following year.
    42    (j) Regulations. The commissioner is hereby authorized  to  promulgate
    43  and  adopt on an emergency basis regulations necessary for the implemen-
    44  tation of this section.
    45    (k) Reports. 1. Reports to the commissioner. On or before the last day
    46  of February for each calendar year, each public education entity, school
    47  improvement organization, local education fund, and educational scholar-
    48  ship organization that issued one or more certificates of receipt  shall
    49  report  to  the  commissioner the number of such certificates issued and
    50  the aggregate amount of qualified contributions  made  to  such  entity,
    51  fund, or organization during the immediately preceding calendar year.
    52    2.  Joint  annual  report.  On or before the last day of June for each
    53  calendar year, for the immediately preceding year, the commissioner  and
    54  the  commissioner  of education shall jointly submit a written report to
    55  the governor, the temporary president of the senate, the speaker of  the
    56  assembly,  the chairman of the senate finance committee and the chairman

        A. 2551--A                          8
 
     1  of the assembly ways and means  committee  regarding  the  credit.  Such
     2  report  shall  contain  information  for articles nine-A and twenty-two,
     3  respectively, regarding: (i) the number of applications  received;  (ii)
     4  the  number  of  and  aggregate  value of the contribution authorization
     5  certificates issued for  contributions  to  public  education  entities,
     6  school improvement organizations, local education funds, and scholarship
     7  organizations,  respectively;  (iii)  the  geographical  distribution by
     8  county of (A) the applications for  contribution  authorization  certif-
     9  icates,  distribution  by  county  of (B) the public education entities,
    10  school improvement organizations, local education funds, and educational
    11  scholarship organizations listed on  the  issued  contribution  authori-
    12  zation   certificates;  and  (iv)  information,  including  geographical
    13  distribution by county, of the number of eligible pupils  that  received
    14  scholarships,  the  number of eligible pupils that reside in a household
    15  that has an income not to exceed one hundred fifty percent of the income
    16  qualification required for the reduced price school  lunches  under  the
    17  National  School  Lunch Act, the number of qualified schools attended by
    18  eligible pupils that received such scholarships, and the  average  value
    19  of  scholarships  received by such eligible pupils. The commissioner and
    20  designated employees of the state education  department,  the  board  of
    21  regents  and  all members of the board of regents, including the commis-
    22  sioner of education and designated  employees  of  the  state  education
    23  department,  shall  be  allowed  and  are directed to share and exchange
    24  information regarding the school improvement organizations, local educa-
    25  tion funds and educational scholarship organizations  that  applied  for
    26  approval  to  be  authorized to receive qualified contributions; and the
    27  public  education  entities,  school  improvement  organizations,  local
    28  education funds, and educational scholarship organizations authorized to
    29  issue  certificates  of  receipt,  including information contained in or
    30  derived from application forms and reports submitted to the state educa-
    31  tion department or board of regents.
    32    (l) Cross references. For application of the credit  provided  for  in
    33  this section, see the following provisions of this chapter:
    34    1. Article 9-A: section 210-B; subdivision 49;
    35    2. Article 22: section 606; subsections (i) and (ccc).
    36    §  4.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
    37  amended by adding a new subparagraph 22 to read as follows:
    38    (22) The amount of any  deduction  allowed  pursuant  to  section  one
    39  hundred seventy of the internal revenue code for which credit is claimed
    40  pursuant  to subdivision forty-nine of section two hundred ten-B of this
    41  article.
    42    § 5. Section 210-B of the tax law is amended by adding a new  subdivi-
    43  sion 49 to read as follows:
    44    49.  Education  investment  tax  credit.  (a)  Allowance  of credit. A
    45  taxpayer shall be allowed a  credit,  to  be  computed  as  provided  in
    46  section forty-two of this chapter, against the tax imposed by this arti-
    47  cle.
    48    (b)  Application  of credit. The credit allowed under this subdivision
    49  for any taxable year shall not reduce the tax due for that year to  less
    50  than  the  higher of the amounts prescribed in paragraph (d) of subdivi-
    51  sion one of section two hundred ten of this article.   However,  if  the
    52  amount  of  credit allowed under this subdivision for qualified contrib-
    53  utions for any taxable year reduces the tax to such amount,  any  amount
    54  of  credit  thus not deductible in such taxable year may be carried over
    55  to the succeeding five years and may be deducted from the taxpayer's tax
    56  for such year or years.

        A. 2551--A                          9
 
     1    § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
     2  of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
     3  follows:
     4  (xli) Education investment           Amount of credit under subdivision
     5  tax credit under subsection (ccc)    forty-nine of section two hundred
     6                                       ten-B
     7    §  7. Section 606 of the tax law is amended by adding a new subsection
     8  (w) to read as follows:
     9    (w) Instructional materials and supplies credit. (1) For taxable years
    10  beginning on and after January first, two thousand seventeen, a taxpayer
    11  shall be allowed a credit in the amount paid by the taxpayer during  the
    12  taxable  year  for  instructional materials and supplies with respect to
    13  classroom based instruction  in  a  qualified  school,  or  two  hundred
    14  dollars,  whichever  is less; provided that the taxpayer is a teacher or
    15  instructor in a qualified school, as defined  in  section  forty-two  of
    16  this  chapter, for at least nine hundred hours during a school year. For
    17  purposes of this subsection, the term  "materials  and  supplies"  means
    18  amounts paid for instructional materials or supplies that are designated
    19  for classroom use in any qualified school.
    20    (2) A husband and wife who file separate returns for a taxable year in
    21  which  they could have filed a joint return may each claim only one-half
    22  of the tax credit that would have been allowed for a joint return.
    23    (3) If the amount of the credit allowed under this subsection for  any
    24  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    25  shall be treated as an overpayment of tax to be credited or refunded  in
    26  accordance with the provisions of section six hundred eighty-six of this
    27  article, provided, however, that no interest shall be paid thereon.
    28    § 8.  Section 606 of the tax law is amended by adding a new subsection
    29  (ccc) to read as follows:
    30    (ccc)  Education  investment  tax  credit.  (1) Allowance of credit. A
    31  taxpayer shall be allowed a credit to be computed as provided in section
    32  forty-two of this chapter, against the tax imposed by this article.
    33    (2) Application of credit. If the amount of the credit  allowed  under
    34  this  subsection  for  any  qualified contributions for any taxable year
    35  exceeds the taxpayer's tax for such year, the excess may be carried over
    36  to the succeeding five years and may be deducted from the taxpayer's tax
    37  for such year or years.
    38    § 9. Subsection (c) of section 615 of the tax law is amended by adding
    39  a new paragraph 9 to read as follows:
    40    (9) The amount of any federal deduction  for  contributions  made  for
    41  which  a  taxpayer  claims a credit under subsection (kk) of section six
    42  hundred six of this article.
    43    § 10. The education law is amended by adding a new article 25 to  read
    44  as follows:
    45                                 ARTICLE 25
    46                   EDUCATION INVESTMENT TAX CREDIT PROGRAM
    47  Section 1209. Short title.
    48          1210. Definitions.
    49          1211. Approval to issue certificates of receipt.
    50          1212. Applications   for   approval  to  issue  certificates  of
    51                  receipt.
    52          1213. Application approval.
    53          1214. Revocation of approval to issue certificates of receipt.
    54          1215. Reporting and recordkeeping.
    55          1216. Joint annual report.
    56          1217. Commissioner; powers.

        A. 2551--A                         10
 
     1    § 1209. Short title. This article shall be known and may be  cited  as
     2  the "education investment tax credit program".
     3    §  1210.  Definitions.  As  used  in this article, the following terms
     4  shall have the following meanings:
     5    1. "Authorized contribution" means the contribution amount  listed  on
     6  the contribution authorization certificate issued to a taxpayer.
     7    2.  "Contribution"  means  a  donation paid by cash, check, electronic
     8  funds transfer, debit card or credit card made by  the  taxpayer  during
     9  the tax year.
    10    3.  "Educational program" means an academic program of a public school
    11  that enhances the curriculum or academic program of the  public  school,
    12  or  provides  or  expands  a pre-kindergarten program or an after school
    13  program to the public school.  For  purposes  of  this  definition,  the
    14  instruction,  materials,  programs  or  other  activities  offered by or
    15  through an educational program may include, but are not limited to,  the
    16  following features: (a) instruction or materials promoting health, phys-
    17  ical  education,  and family and consumer sciences; literary, performing
    18  and visual arts; mathematics, social studies, technology and  scientific
    19  achievement;  (b) instruction or programming to meet the education needs
    20  of at-risk students or students with disabilities, including tutoring or
    21  counseling; or (c) use of specialized instructional materials,  instruc-
    22  tors or instruction not provided by a public school.
    23    4. "Educational scholarship organization" means a not-for-profit enti-
    24  ty which (i) is exempt from taxation under paragraph three of subsection
    25  (c)  of  section  five  hundred  one  of the internal revenue code, (ii)
    26  commits for the expenditure of or designates at least ninety percent  of
    27  the  revenue  from  qualified contributions received during the calendar
    28  year and any income derived from qualified  contributions  for  scholar-
    29  ships, (iii) provides more than fifty percent of its scholarships during
    30  a calendar year to eligible pupils who reside in a household that has an
    31  income  not to exceed one hundred fifty percent of the income qualifica-
    32  tion required for the reduced price school lunches  under  the  National
    33  School  Lunch  Act,  provided however for the purposes of an educational
    34  scholarship organization fulfilling  such  requirement,  an  educational
    35  scholarship organization may enter into an agreement with another educa-
    36  tional scholarship organization or organizations to jointly report their
    37  scholarship  information  to  meet  such  requirement; (iv) deposits and
    38  holds qualified contributions and  any  income  derived  from  qualified
    39  contributions  in  an  account  that is separate from the organization's
    40  operating or other funds until such qualified  contributions  or  income
    41  are  withdrawn for use, and (v) provides scholarships to eligible pupils
    42  for use at not fewer than three non-public schools.
    43    5. "Eligible pupil" means a child who (i) is a resident of this state,
    44  (ii) is school age in accordance with subdivision one of  section  thir-
    45  ty-two  hundred  two  of  this chapter or who is four years of age on or
    46  before December first of the year in which they are enrolled in  a  pre-
    47  kindergarten  program,  (iii)  attends or is about to attend a qualified
    48  school, and (iv) resides in a household which  has  a  federal  adjusted
    49  gross  income  of  two  hundred fifty thousand dollars or less, provided
    50  however, for households with three  or  more  dependent  children,  such
    51  income  level  shall  be increased by ten thousand dollars per dependent
    52  child in excess of two children, not to exceed  three  hundred  thousand
    53  dollars.
    54    6.  "Local  education fund" means a not-for-profit entity which (i) is
    55  exempt from taxation under paragraph three of subsection (c) of  section
    56  five  hundred  one of the internal revenue code, (ii) is established for

        A. 2551--A                         11
 
     1  the purpose of supporting at least one public school, or a public school
     2  district, (iii) uses at least ninety percent of the  qualified  contrib-
     3  utions  received  during  the  calendar year and any income derived from
     4  such  qualified contributions to support the public school or schools or
     5  public school district or districts that such fund has been  established
     6  to  support, and (iv) deposits and holds qualified contributions and any
     7  income derived from qualified contributions in an account that is  sepa-
     8  rate  from  the  fund's  operating  or  other funds until such qualified
     9  contributions or income are withdrawn for use.
    10    7.  "Non-public  school"  means  any  not-for-profit  pre-kindergarten
    11  program or elementary, secondary sectarian or nonsectarian school, other
    12  than  a  public  school,  that  is  providing instruction at one or more
    13  locations to an eligible pupil in accordance  with  subdivision  two  of
    14  section thirty-two hundred four of this chapter.
    15    8.  "Public  education  entity"  means  a  public school district or a
    16  public school, provided that  such  public  school  district  or  public
    17  school deposits and holds qualified contributions and any income derived
    18  from  qualified  contributions  in  an account that is separate from the
    19  public school or public school district's operating or other funds until
    20  such qualified contributions or income are withdrawn for use from  oper-
    21  ating or other funds and is approved to receive authorized contributions
    22  and issue certificates of receipt pursuant to this article.
    23    9.  "Public  school"  means any free elementary or secondary school in
    24  this state pursuant to article eleven of the New York constitution,  but
    25  shall  not  include  a charter school authorized by article fifty-six of
    26  this chapter.
    27    10. "Qualified contribution" means the authorized contribution made by
    28  a taxpayer to a public education entity, local  education  fund,  school
    29  improvement  district  or  educational  scholarship organization that is
    30  listed on the  contribution  authorization  certificate  issued  to  the
    31  taxpayer  and  for  which  the  taxpayer  has  received a certificate of
    32  receipt from such entity, fund, or organization.   A  contribution  does
    33  not qualify if the taxpayer designates the taxpayer's contribution to an
    34  entity or organization for the direct benefit of any particular or spec-
    35  ified student.
    36    11.  "Qualified  educator"  means  an  individual  who is a teacher or
    37  instructor in a qualified school for at least nine hundred hours  during
    38  a school year.
    39    12.  "Qualified  school"  means  a  public school or non-public school
    40  located in this state.
    41    13. "Scholarship" means an educational scholarship  which  provides  a
    42  tuition  grant awarded to an eligible pupil to attend a qualified school
    43  in an amount not to exceed the tuition charged  to  attend  such  school
    44  less  any  other educational scholarship received by such eligible pupil
    45  or his or her parent, parents, legal guardian  or  legal  guardians  for
    46  such  eligible  pupil's  tuition;  provided,  however, in the case of an
    47  eligible pupil attending a public school in a  district  of  which  such
    48  pupil  is  not  a  resident,  the  amount of the educational scholarship
    49  awarded may not exceed the tuition charged by the public school pursuant
    50  to paragraph d of subdivision four of section thirty-two hundred two  of
    51  this  chapter  less  any  other educational scholarship or tuition grant
    52  received by such eligible pupil or his or  her  parent,  parents,  legal
    53  guardian  or legal guardians for such eligible pupil's tuition, but only
    54  if the school district of which such pupil is a resident is not required
    55  to pay for such tuition.

        A. 2551--A                         12
 
     1    14. "School improvement organization" means  a  not-for-profit  entity
     2  which  (i)  is  exempt from taxation under paragraph three of subsection
     3  (c) of section five hundred one of the internal revenue code, (ii)  uses
     4  at  least  ninety percent of the qualified contributions received during
     5  the  calendar  year  and any income derived from qualified contributions
     6  during such months to assist public schools or public  school  districts
     7  located in this state in their provision of educational programs, either
     8  by  making  contributions to one or more public schools or public school
     9  districts located in this state or providing educational programs to, or
    10  in conjunction with,  one  or  more  public  schools  or  public  school
    11  districts  located  in  this  state,  (iii) deposits and holds qualified
    12  contributions and any income derived from qualified contributions in  an
    13  account  that  is  separate  from  the organization's operating or other
    14  funds until such qualified contributions or  income  are  withdrawn  for
    15  use,  and  (iv) is approved to issue certificates of receipt pursuant to
    16  this article. Such term includes a pre-kindergarten program or  not-for-
    17  profit entity that allows the taxpayer to choose to donate to a program,
    18  project  or  initiative  identified by a qualified educator for use in a
    19  public school.
    20    § 1211. Approval to issue certificates of receipt. 1.  Public  schools
    21  and  public  school  districts.  All  public  schools  and public school
    22  districts shall be approved to issue certificates of  receipt  provided,
    23  that  a public school or public school district shall not be approved if
    24  either (i) such public school or public school district fails to deposit
    25  and hold qualified contributions and any income derived  from  qualified
    26  contributions  in  an account that is separate from the school or school
    27  district's operating or other funds until such  qualified  contributions
    28  or  income  are  withdrawn  for  use,  or  (ii) the board of regents has
    29  revoked such approval for such public school or public  school  district
    30  pursuant to section twelve hundred fourteen of this article.
    31    2. School improvement organizations, educational scholarship organiza-
    32  tions  and  local  education  funds. No school improvement organization,
    33  educational scholarship organization or local education fund shall issue
    34  any certificates of receipt without filing an  application  pursuant  to
    35  section twelve hundred twelve and receiving approval pursuant to section
    36  twelve hundred thirteen of this article.
    37    §  1212.  Applications  for approval to issue certificates of receipt.
    38  Each school improvement organization, educational scholarship  organiza-
    39  tion  and  local education fund shall submit an application to the board
    40  of regents for approval to issue certificates of receipt in the form and
    41  manner prescribed by the board of regents, provided that  such  applica-
    42  tion  shall  include:  (1)  submission of documentation that such school
    43  improvement organization, local education fund or  educational  scholar-
    44  ship  organization  has been granted exemption from taxation under para-
    45  graph three of subsection (c) of section five hundred one of the  inter-
    46  nal  revenue  code;  (2)  the  most recent annual financial audit, which
    47  shall be completed by an independent certified public accountant, and  a
    48  list of names and addresses of all members of the governing board of the
    49  school  improvement  organization,  local  education fund or educational
    50  scholarship organization; and (3) an educational  scholarship  organiza-
    51  tion shall provide criteria for the awarding of scholarships to eligible
    52  students.  The  board  of  regents, commissioner or department shall not
    53  require any other information for such application except as  authorized
    54  in this article or by section forty-two of the tax law.
    55    §  1213.  Application approval. In general. The board of regents shall
    56  review each application to issue certificates  of  receipt  pursuant  to

        A. 2551--A                         13
 
     1  this  article. Approval or denial of an application shall be made at the
     2  next scheduled meeting of the board of regents that follows  receipt  of
     3  such application, but not later than the next meeting thereafter.
     4    §  1214.  Revocation of approval to issue certificates of receipt. The
     5  board of regents, in consultation with the commissioner of taxation  and
     6  finance,  may  revoke the approval of a school improvement organization,
     7  educational  scholarship  organization,  local  education  fund,  public
     8  school or public school district to issue certificates of receipt upon a
     9  finding  that  such  organization,  fund,  school or school district has
    10  violated this article  or  section  forty-two  of  the  tax  law.  These
    11  violations  shall  include, but not be limited to, any of the following:
    12  (1) failure to meet the requirements of this article or  section  forty-
    13  two  of  the  tax  law,  (2)  the  failure to maintain full and adequate
    14  records with respect to the receipt of qualified contributions, (3)  the
    15  failure  to supply such records to the commissioner, department of taxa-
    16  tion and finance, the department or the board of regents when  requested
    17  by  the  department  or  board of regents, or (4) the failure to provide
    18  notice to the department of taxation and  finance  of  the  issuance  or
    19  non-issuance of certificates of receipt pursuant to section forty-two of
    20  the  tax  law;  provided,  however,  that the board of regents shall not
    21  revoke approval pursuant to this section based upon a violation  of  tax
    22  law  unless the commissioner of taxation and finance agrees that revoca-
    23  tion is warranted; and provided further that the board of regents  shall
    24  not  revoke approval pursuant to this section when the failure to comply
    25  is due to clerical error and not negligence or intentional disregard for
    26  the law.  Within five days of the determination revoking  approval,  the
    27  commissioner  shall provide notice of such revocation to the educational
    28  scholarship organization, school improvement organization, local  educa-
    29  tion  fund,  public school, or public school district and to the depart-
    30  ment of taxation and finance.
    31    § 1215. Reporting and recordkeeping. 1.  Reporting.  Each  educational
    32  scholarship  organization, school improvement organization, local educa-
    33  tion fund, public school and public school district that receives quali-
    34  fied contributions shall report to the commissioner  and  the  board  of
    35  regents  by  the last day of February of each calendar year. Such report
    36  shall be in the form  and  manner  prescribed  by  the  commissioner  in
    37  consultation  with  the  board of regents, which shall include an annual
    38  financial audit from an  independent  certified  public  accountant  and
    39  shall  not  exceed the requirements necessary to produce the information
    40  pursuant to section twelve hundred sixteen of this article.
    41    2. Recordkeeping. Each educational  scholarship  organization,  school
    42  improvement organization, local education fund, public school and public
    43  school  district  that  issued at least one certificate of receipt shall
    44  maintain records including (a) notifications received from  the  depart-
    45  ment  of  taxation and finance, (b) notifications made to the department
    46  of taxation and finance, (c) copies of qualified contributions received,
    47  (d) copies of the deposit of such qualified contributions, (e) copies of
    48  issued certificates of receipt, (f) annual financial statements, (g)  in
    49  the  case  of  school improvement organizations, educational scholarship
    50  organizations and  local  education  funds,  the  application  submitted
    51  pursuant  to  section  twelve  hundred  twelve  of  this article and the
    52  approval issued by the board of regents, and (h) any  other  information
    53  as  prescribed  by  regulation  promulgated  by the commissioner or rule
    54  promulgated by the board of regents.
    55    § 1216. Joint annual report. On or before the last  day  of  June  for
    56  each  calendar  year,  the  commissioner of taxation and finance and the

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     1  commissioner, jointly, shall submit a  written  report  as  provided  in
     2  paragraph two of subdivision (j) of section forty-two of the tax law.
     3    §  1217. Commissioner; powers. The commissioner shall promulgate on an
     4  emergency basis regulations necessary for  the  implementation  of  this
     5  section.  The  commissioner  shall  make  any application required to be
     6  filed pursuant to this article available to applicants within sixty days
     7  of the effective date of this article.
     8    § 11. The education law is amended by adding a new section  1503-a  to
     9  read as follows:
    10    §  1503-a.  Power  to  accept and solicit gifts and donations.  1. All
    11  school districts organized by special laws or pursuant to the provisions
    12  of a general law are hereby authorized and empowered  to  accept  gifts,
    13  donations, and contributions to the district and to solicit the same.
    14    2. Notwithstanding any other provision of this chapter or of any other
    15  general  or  special  law  to  the  contrary, the receipt of such gifts,
    16  donations, contributions and other funds, and any income derived  there-
    17  from,  shall  be  disregarded  for  the  purposes of all apportionments,
    18  computations, and determinations of state aid.
    19    § 12. Severability. If any provision of this section or  the  applica-
    20  tion  thereof to any person or circumstances is held invalid, such inva-
    21  lidity shall not affect other provisions or applications of the  section
    22  which  can be given effect without the invalid provision or application,
    23  and to this end the provisions of this section are declared to be sever-
    24  able.
    25    § 13. This act shall take effect immediately and shall apply to  taxa-
    26  ble years beginning after December 31, 2016.
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