Bill Text: NY A05081 | 2011-2012 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishes an education investment tax credit.
Spectrum: Slight Partisan Bill (Democrat 36-16)
Status: (Introduced - Dead) 2012-06-19 - held for consideration in ways and means [A05081 Detail]
Download: New_York-2011-A05081-Amended.html
Bill Title: Establishes an education investment tax credit.
Spectrum: Slight Partisan Bill (Democrat 36-16)
Status: (Introduced - Dead) 2012-06-19 - held for consideration in ways and means [A05081 Detail]
Download: New_York-2011-A05081-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5081--B
2011-2012 Regular Sessions
I N A S S E M B L Y
February 11, 2011
___________
Introduced by M. of A. CUSICK, THIELE, MARKEY, RAIA, MALLIOTAKIS, KELL-
NER, JAFFEE, LAVINE, ESPINAL, ROBINSON, GOLDFEDER, SIMANOWITZ, SCAR-
BOROUGH, ROBERTS, BROOK-KRASNY -- Multi-Sponsored by -- M. of A.
BOYLAND, CORWIN, CRESPO, CURRAN, CYMBROWITZ, ENGLEBRIGHT, GIBSON,
HIKIND, KOLB, LANCMAN, LATIMER, McENENY, P. RIVERA, SCHIMEL, SCHIM-
MINGER, TITONE, WEISENBERG -- read once and referred to the Committee
on Higher Education -- reference changed 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 --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to enacting 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 S 2. Legislative findings and intent. The legislature hereby finds and
4 declares that:
5 a. At a time when the state is considering ways of reducing the tax
6 burden for New York state residents and educators are seeking an expan-
7 sion of financial resources, charitable giving for educational purposes
8 should be stimulated;
9 b. Permitting public education entities such as school districts and
10 individual public schools, including charter schools, to accept and
11 receive voluntary cash contributions will lessen the need for additional
12 tax revenue;
13 c. Encouraging voluntary support for education, without prejudice for
14 or against any state-sanctioned educational enterprise, promotes the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05643-10-2
A. 5081--B 2
1 state's interest in providing the highest quality education to all chil-
2 dren in the state;
3 d. Requiring a sharing of resources among school districts will insure
4 a more equitable distribution of financial support;
5 e. The tax credit provided in this act is merely one of many credits
6 available to New York taxpayers;
7 f. The intended beneficiaries of the tax credit provided in this act
8 are the students who attend public schools, including charter schools,
9 or who further their educations using tuition scholarships from educa-
10 tional scholarship organizations, or who participate in home-based
11 educational programs; therefore the tax credit does not constitute
12 public aid to non-public sectarian institutions;
13 g. Permitting school personnel to claim a credit for the purchase of
14 classroom instructional materials and supplies will insure a wider
15 availability of such materials and supplies for all students.
16 S 3. Section 606 of the tax law is amended by adding six new
17 subsections (u), (v), (w), (w-1), (w-2) and (w-3) to read as follows:
18 (U) DEFINITIONS. AS USED IN SUBSECTIONS (V), (W), (W-1), (W-2) AND
19 (W-3) OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
20 MEANINGS:
21 (1) "PUBLIC EDUCATION ENTITY" SHALL MEAN ANY PUBLIC SCHOOL DISTRICT OR
22 ANY INDIVIDUAL PUBLIC SCHOOL, INCLUDING ANY CHARTER SCHOOL; A NONPROFIT
23 ORGANIZATION FOR THE PURPOSE OF PROVIDING PROGRAMMING FOR PERFORMING
24 ARTS, VISUAL ARTS, CIVIC INSTRUCTION, PRE-KINDERGARTEN INSTRUCTION, OR
25 ANY OTHER EDUCATIONAL PURPOSE WITHIN SUCH SCHOOLS; A NONPROFIT ORGANIZA-
26 TION THAT ALLOWS DONORS TO CHOOSE SCHOOL PROJECTS FOR CHARITABLE SUPPORT
27 THAT ARE IDENTIFIED BY TEACHERS OR OTHER SCHOOL PERSONNEL; AND THE
28 UNIVERSITY OF THE STATE OF NEW YORK RESEARCH FUND.
29 (2) "LOCAL EDUCATION FUND" SHALL MEAN A CHARITABLE ORGANIZATION IN
30 THIS STATE THAT:
31 (A) IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501 (C)(3) OF THE
32 INTERNAL REVENUE CODE; AND
33 (B) IS ESTABLISHED FOR THE EXPLICIT PURPOSE OF SUPPORTING PUBLIC
34 EDUCATION WITHIN A SPECIFIC PUBLIC SCHOOL DISTRICT.
35 (3) "EDUCATIONAL SCHOLARSHIP ORGANIZATION" SHALL MEAN A CHARITABLE
36 ORGANIZATION IN THIS STATE THAT:
37 (A) IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501 (C)(3) OF THE
38 INTERNAL REVENUE CODE;
39 (B) ALLOCATES AT LEAST NINETY PERCENT OF DONATIONS FOR WHICH TAX CRED-
40 ITS ARE CLAIMED UNDER SUBSECTION (W-3) OF THIS SECTION FOR EDUCATIONAL
41 SCHOLARSHIPS;
42 (C) MAKES EDUCATIONAL SCHOLARSHIPS OR TUITION GRANTS AVAILABLE TO
43 CHILDREN FROM MORE THAN ONE PUBLIC OR ELIGIBLE NON-PUBLIC SCHOOL; AND
44 (D) REPORTS ANNUALLY TO THE DEPARTMENT THE GROSS RECEIPTS AND GROSS
45 AMOUNT EXPENDED FOR SCHOLARSHIPS AND TUITION GRANTS.
46 (4) "ELIGIBLE NON-PUBLIC SCHOOL" SHALL MEAN AN INDEPENDENT SECTARIAN
47 OR NON-SECTARIAN PRIMARY OR SECONDARY SCHOOL OR PRE-KINDERGARTEN PROGRAM
48 THAT IS LOCATED IN THIS STATE, THAT SATISFIES THE REQUIREMENTS
49 PRESCRIBED BY APPLICABLE LAW FOR SUCH SCHOOLS IN THIS STATE, AND THAT
50 HAS QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501 (C)(3) OF THE
51 INTERNAL REVENUE CODE.
52 (5) "AUTHORIZED CERTIFICATE OF RECEIPT" SHALL MEAN A CERTIFICATE
53 DESIGNED BY THE COMMISSIONER FOR THE PURPOSE OF ACKNOWLEDGING RECEIPT OF
54 A CHARITABLE CONTRIBUTION BY THE CHIEF EXECUTIVE OFFICER OF AN EDUCA-
55 TIONAL SCHOLARSHIP ORGANIZATION.
A. 5081--B 3
1 (6) "ELIGIBLE PUPIL" SHALL MEAN A PUPIL WHO IS A RESIDENT OF THE STATE
2 OF NEW YORK AND OF AGE TO ATTEND SCHOOL IN ACCORDANCE WITH SUBDIVISION
3 ONE OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION LAW OR WHO IS
4 FOUR YEARS OF AGE ON OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH THEY
5 ARE ENROLLED IN A PRE-KINDERGARTEN PROGRAM.
6 (V) CONTRIBUTIONS TO PUBLIC EDUCATION CREDIT. FOR TAXABLE YEARS BEGIN-
7 NING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A CREDIT IS
8 ALLOWED FOR VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAYER DURING THE
9 TAXABLE YEAR TO A PUBLIC EDUCATION ENTITY. ACCEPTANCE AND RECEIPT OF ALL
10 SUCH CONTRIBUTIONS SHALL BE PERMITTED. A TAXPAYER WHO SUBMITS WITH HIS
11 OR HER TAX RETURN AN AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE ALLOWED
12 A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX
13 IMPOSED BY THIS ARTICLE.
14 (1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
15 OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
16 SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
17 IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
18 THE TAXPAYER.
19 A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER OF A PARTNER-
20 SHIP (OR OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX PURPOSES)
21 SHALL BE TREATED AS THE TAXPAYER WITH RESPECT TO HIS OR HER PRO-RATA
22 SHARE OF THE TAX CREDIT ALLOWABLE TO SUCH S CORPORATION OR PARTNERSHIP,
23 DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE YEAR ENDING
24 WITH OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE YEAR. THE MAXIMUM
25 AMOUNT OF THE CREDIT FOR SUCH S CORPORATION OR PARTNERSHIP SHALL BE THE
26 SAME AS THAT ALLOWABLE TO CORPORATIONS UNDER SUBDIVISIONS FORTY-SIX,
27 FORTY-SEVEN AND FORTY-EIGHT OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
28 (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
29 WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
30 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
31 (3) IF THE ALLOWABLE TAX CREDIT EXCEEDS SEVENTY-FIVE PERCENT OF THE
32 TAXES OTHERWISE DUE UNDER THIS ARTICLE ON THE TAXPAYER'S INCOME, OR IF
33 THERE ARE NO TAXES DUE UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE
34 AMOUNT OF THE CREDIT NOT USED TO OFFSET THE TAXES UNDER THIS ARTICLE
35 FORWARD FOR NOT MORE THAN FIVE YEARS' INCOME TAX LIABILITY.
36 (4) CONTRIBUTIONS IN ANY TAXABLE YEAR THAT RECEIVE A CREDIT PURSUANT
37 TO THIS SUBSECTION SHALL NOT BE CONSIDERED ELIGIBLE DEDUCTIONS AS
38 ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS. CONTRIBUTIONS
39 IN EXCESS OF SEVENTY-FIVE PERCENT OF A TAXPAYER'S TAX LIABILITY IN ANY
40 TAXABLE YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGI-
41 BLE DEDUCTIONS AS ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIB-
42 UTIONS.
43 (5) SUCH CONTRIBUTIONS SHALL BE DEPOSITED IN A SEPARATE ACCOUNT.
44 (6) IF MADE TO A PUBLIC SCHOOL DISTRICT SUCH CONTRIBUTIONS SHALL BE
45 SUPERVISED BY A PERSON SO DESIGNATED BY THE CHANCELLOR OR SUPERINTEN-
46 DENT. IF MADE TO A PARTICULAR SCHOOL THEY SHALL BE SUPERVISED BY THE
47 SCHOOL PRINCIPAL. REPORTS OF DEPOSITS AND DISBURSEMENTS SHALL BE MADE TO
48 THE LOCAL BOARD OF EDUCATION ANNUALLY. CHARTER SCHOOLS SHALL MAKE SUCH
49 REPORTS TO THE RESPECTIVE CHARTER SCHOOL BOARD OF TRUSTEES, AS APPLICA-
50 BLE.
51 (W) CONTRIBUTIONS TO LOCAL EDUCATION FUND CREDIT. IN LIEU OF CONTRIB-
52 UTIONS IN SUBSECTION (V) OF THIS SECTION, A CREDIT IS ALLOWED FOR TAXA-
53 BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN FOR
54 THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAYER DURING
55 THE TAXABLE YEAR TO A LOCAL EDUCATION FUND. A TAXPAYER WHO SUBMITS WITH
56 HIS OR HER TAX RETURN AN AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE
A. 5081--B 4
1 ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
2 TAX IMPOSED BY THIS ARTICLE.
3 (1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
4 OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
5 SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
6 IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
7 THE TAXPAYER. A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER OF
8 A PARTNERSHIP (OR OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX
9 PURPOSES) SHALL BE TREATED AS THE TAXPAYER WITH RESPECT TO HIS OR HER
10 PRO-RATA SHARE OF THE TAX CREDIT ALLOWABLE TO SUCH S CORPORATION OR
11 PARTNERSHIP, DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE
12 YEAR ENDING WITH OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE YEAR.
13 THE MAXIMUM AMOUNT OF THE CREDIT FOR SUCH S CORPORATION OR PARTNERSHIP
14 SHALL BE THE SAME AS THAT ALLOWABLE TO CORPORATIONS UNDER SUBDIVISIONS
15 FORTY-SIX, FORTY-SEVEN AND FORTY-EIGHT OF SECTION TWO HUNDRED TEN OF
16 THIS CHAPTER.
17 (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
18 WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
19 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
20 (3) IF THE ALLOWABLE TAX CREDIT EXCEEDS SEVENTY-FIVE PERCENT OF THE
21 TAXES OTHERWISE DUE UNDER THIS ARTICLE ON THE TAXPAYER'S INCOME, OR IF
22 THERE ARE TAXES DUE UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE
23 AMOUNT OF THE CREDIT NOT USED TO OFFSET THE TAXES UNDER THIS ARTICLE
24 FORWARD FOR NOT MORE THAN FIVE YEARS' INCOME TAX LIABILITY.
25 (4) CONTRIBUTIONS IN ANY TAXABLE YEAR THAT RECEIVE A CREDIT PURSUANT
26 TO THIS SUBSECTION SHALL BE CONSIDERED ELIGIBLE DEDUCTIONS AS ALLOWED
27 UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS. CONTRIBUTIONS IN EXCESS
28 OF SEVENTY-FIVE PERCENT OF A TAXPAYERS' TAX LIABILITY IN ANY TAXABLE
29 YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGIBLE
30 DEDUCTIONS AS ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS.
31 (5) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
32 EDUCATION FUND FOR THE BENEFIT OF A DESIGNATED STUDENT.
33 (W-1) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. IN LIEU OF CONTRIB-
34 UTIONS IN SUBSECTIONS (V) AND (W) OF THIS SECTION, A CREDIT IS ALLOWED
35 FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
36 THIRTEEN FOR THE PURCHASE OF INSTRUCTIONAL MATERIALS FOR NON-PUBLIC
37 HOME-BASED EDUCATIONAL PROGRAMS. THIS CREDIT SHALL BE VALUED AT ONE
38 HUNDRED PERCENT OF SUCH PURCHASES.
39 (1) THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED SEVENTY-FIVE DOLLARS IN
40 ANY TAXABLE YEAR.
41 (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
42 WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
43 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
44 (3) IF THE ALLOWABLE TAX CREDIT EXCEEDS THE TAXES OTHERWISE DUE UNDER
45 THIS ARTICLE ON THE TAXPAYER'S INCOME, OR IF THERE ARE NO TAXES DUE
46 UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE AMOUNT OF THE CREDIT NOT
47 USED TO OFFSET THE TAXES UNDER THIS ARTICLE FORWARD FOR NOT MORE THAN
48 FIVE YEARS' INCOME TAX LIABILITY.
49 (4) IF THE TAXPAYER SHALL BE RESPONSIBLE FOR NOTIFYING THE COMMISSION-
50 ER OF THE INTENTION TO CLAIM THE ALLOWABLE CREDIT, NO LATER THAN DECEM-
51 BER THIRTY-FIRST.
52 (W-2) CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. FOR TAXA-
53 BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A
54 CREDIT IS ALLOWED FOR THE PERSONNEL EMPLOYED IN ANY PUBLIC SCHOOL,
55 INCLUDING ANY CHARTER SCHOOL, OR IN ANY ELIGIBLE NON-PUBLIC SCHOOL FOR
56 THE PURCHASE OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES.
A. 5081--B 5
1 (1) THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED SEVENTY-FIVE DOLLARS IN
2 ANY TAXABLE YEAR.
3 (2) THE TAXPAYER SHALL BE RESPONSIBLE FOR NOTIFYING THE COMMISSIONER
4 OF THE INTENTION TO CLAIM THE ALLOWABLE CREDIT, NO LATER THAN DECEMBER
5 THIRTY-FIRST, INDICATING WHETHER THE PURCHASE WAS MADE FOR USE IN A
6 PUBLIC SCHOOL, INCLUDING A CHARTER SCHOOL, OR AN ELIGIBLE NON-PUBLIC
7 SCHOOL.
8 (W-3) CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATION CREDIT.
9 FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
10 THIRTEEN, A CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIB-
11 UTIONS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO AN EDUCATIONAL
12 SCHOLARSHIP ORGANIZATION. A TAXPAYER WHO SUBMITS WITH HIS OR HER TAX
13 RETURN AN AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE ALLOWED A CREDIT,
14 TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS
15 ARTICLE.
16 (1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
17 OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
18 SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
19 IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
20 THE TAXPAYER. A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER OF
21 A PARTNERSHIP (OR OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX
22 PURPOSES) SHALL BE TREATED AS THE TAXPAYER WITH RESPECT TO HIS OR HER
23 PRO-RATA SHARE OF THE TAX CREDIT ALLOWABLE TO SUCH S CORPORATION OR
24 PARTNERSHIP, DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE
25 YEAR ENDING WITH OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE YEAR.
26 THE MAXIMUM AMOUNT OF THE CREDIT FOR SUCH S CORPORATION OR PARTNERSHIP
27 SHALL BE THE SAME AS THAT ALLOWABLE TO CORPORATIONS UNDER SUBDIVISIONS
28 FORTY-SIX, FORTY-SEVEN AND FORTY-EIGHT OF SECTION TWO HUNDRED TEN OF
29 THIS CHAPTER.
30 (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
31 WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
32 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
33 (3) IF THE ALLOWABLE TAX CREDIT EXCEEDS SEVENTY-FIVE PERCENT OF THE
34 TAXES OTHERWISE DUE UNDER THIS ARTICLE ON THE TAXPAYER'S INCOME, OR IF
35 THERE ARE NO TAXES DUE UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE
36 AMOUNT OF CREDIT NOT USED TO OFFSET THE TAXES UNDER THIS ARTICLE FORWARD
37 FOR NOT MORE THAN FIVE YEARS' INCOME TAX LIABILITY.
38 (4) CONTRIBUTIONS IN ANY TAXABLE YEAR THAT RECEIVE A CREDIT PURSUANT
39 TO THIS SUBSECTION SHALL NOT BE CONSIDERED ELIGIBLE DEDUCTIONS AS
40 ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS. CONTRIBUTIONS
41 IN EXCESS OF SEVENTY-FIVE PERCENT OF A TAXPAYERS' TAX LIABILITY IN ANY
42 TAXABLE YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGI-
43 BLE DEDUCTIONS AS ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIB-
44 UTIONS.
45 (5) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
46 EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE BENEFIT OF A DESIGNATED
47 PUPIL.
48 (6) SCHOLARSHIP AMOUNT.
49 (A) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD A SCHOLARSHIP TO A
50 NON-DISTRICT RESIDENT ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL OPERATED
51 BY A SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED THE TUITION CHARGED BY
52 THE PARTICIPATING PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION
53 FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION LAW, PROVIDED,
54 HOWEVER THAT A SCHOLARSHIP SHALL NOT BE AVAILABLE IN ANY CASE WHERE THE
55 RESIDENT DISTRICT OF SUCH PUPIL IS LIABLE FOR SUCH TUITION.
A. 5081--B 6
1 (B) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD AN ELIGIBLE SCHOL-
2 ARSHIP TO A PUPIL ENROLLED IN A PUBLIC SCHOOL, INCLUDING A CHARTER
3 SCHOOL, OR A NON-PUBLIC SCHOOL IN AN AMOUNT NOT TO EXCEED THE TUITION
4 AMOUNT OF THE ELIGIBLE NON-PUBLIC SCHOOL, PROVIDED, HOWEVER, THAT THE
5 TOTAL AMOUNT OF SUCH TAX CREDITS SHALL NOT EXCEED THE AMOUNT OF AVAIL-
6 ABLE TAX CREDITS FOR EDUCATIONAL SCHOLARSHIP ORGANIZATIONS SET FORTH IN
7 PARAGRAPH SIX OF SUBDIVISION TWENTY-NINTH OF SECTION ONE HUNDRED SEVEN-
8 TY-ONE OF THIS CHAPTER.
9 S 4. Section 210 of the tax law is amended by adding four new subdivi-
10 sions 45, 46, 47 and 48 to read as follows:
11 45. DEFINITIONS. AS USED IN SUBDIVISIONS FORTY-SIX, FORTY-SEVEN AND
12 FORTY-EIGHT OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
13 MEANINGS:
14 (A) "PUBLIC EDUCATION ENTITY" SHALL MEAN ANY PUBLIC SCHOOL DISTRICT OR
15 ANY INDIVIDUAL PUBLIC SCHOOL, INCLUDING ANY CHARTER SCHOOL; A NONPROFIT
16 ORGANIZATION FOR THE PURPOSE OF PROVIDING PROGRAMMING FOR PERFORMING
17 ARTS, VISUAL ARTS, CIVIC INSTRUCTION, PRE-KINDERGARTEN INSTRUCTION, OR
18 ANY OTHER EDUCATIONAL PURPOSE WITHIN SUCH SCHOOLS; A NONPROFIT ORGANIZA-
19 TION THAT ALLOWS DONORS TO CHOOSE SCHOOL PROJECTS FOR CHARITABLE SUPPORT
20 THAT ARE IDENTIFIED BY TEACHERS OR OTHER SCHOOL PERSONNEL; AND THE
21 UNIVERSITY OF THE STATE OF NEW YORK RESEARCH FUND.
22 (B) "LOCAL EDUCATION FUND" SHALL MEAN A CHARITABLE ORGANIZATION IN
23 THIS STATE THAT:
24 (1) IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C) (3) OF THE
25 INTERNAL REVENUE CODE; AND
26 (2) IS ESTABLISHED FOR THE EXPLICIT PURPOSE OF SUPPORTING PUBLIC
27 EDUCATION WITHIN A SPECIFIC PUBLIC SCHOOL DISTRICT.
28 (C) "EDUCATIONAL SCHOLARSHIP ORGANIZATION" SHALL MEAN A CHARITABLE
29 ORGANIZATION IN THIS STATE THAT:
30 (1) IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE
31 INTERNAL REVENUE CODE;
32 (2) ALLOCATES AT LEAST NINETY PERCENT OF DONATIONS FOR WHICH CREDITS
33 ARE CLAIMED UNDER SUBDIVISION FORTY-EIGHT OF THIS SECTION FOR EDUCA-
34 TIONAL SCHOLARSHIPS;
35 (3) MAKES EDUCATIONAL SCHOLARSHIPS OR TUITION GRANTS AVAILABLE TO
36 CHILDREN FROM MORE THAN ONE PUBLIC OR ELIGIBLE NON-PUBLIC SCHOOL; AND
37 (4) REPORTS ANNUALLY TO THE DEPARTMENT THE GROSS RECEIPTS AND GROSS
38 AMOUNT EXPENDED FOR SCHOLARSHIPS AND TUITION GRANTS.
39 (D) "ELIGIBLE NON-PUBLIC SCHOOL" SHALL MEAN AN INDEPENDENT SECTARIAN
40 OR NON-SECTARIAN PRIMARY OR SECONDARY SCHOOL OR PRE-KINDERGARTEN PROGRAM
41 THAT IS LOCATED IN THIS STATE, THAT SATISFIES THE REQUIREMENTS
42 PRESCRIBED BY APPLICABLE LAW FOR SUCH SCHOOLS IN THIS STATE, AND THAT
43 HAS QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE
44 INTERNAL REVENUE CODE.
45 (E) "AUTHORIZED CERTIFICATE OF RECEIPT" SHALL MEAN A CERTIFICATE
46 DESIGNED BY THE COMMISSIONER FOR THE PURPOSE OF ACKNOWLEDGING RECEIPT OF
47 A CHARITABLE CONTRIBUTION BY THE CHIEF EXECUTIVE OFFICER OF A PUBLIC
48 EDUCATION ENTITY, OR OF A LOCAL EDUCATION FUND OR OF AN EDUCATIONAL
49 SCHOLARSHIP ORGANIZATION.
50 (F) "ELIGIBLE PUPIL" SHALL MEAN A PUPIL WHO IS A RESIDENT OF THE STATE
51 OF NEW YORK AND OF AGE TO ATTEND SCHOOL IN ACCORDANCE WITH SUBDIVISION
52 ONE OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION LAW OR WHO IS
53 FOUR YEARS OF AGE ON OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH THEY
54 ARE ENROLLED IN A PRE-KINDERGARTEN PROGRAM.
55 46. CONTRIBUTIONS TO PUBLIC EDUCATION CREDIT. (A) FOR TAXABLE YEARS
56 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A CREDIT IS
A. 5081--B 7
1 ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE
2 TAXPAYER DURING THE TAXABLE YEAR TO A PUBLIC EDUCATION ENTITY. ACCEPT-
3 ANCE AND RECEIPT OF ALL SUCH CONTRIBUTIONS SHALL BE PERMITTED. A TAXPAY-
4 ER WHO SUBMITS WITH HIS OR HER TAX RETURN AN AUTHORIZED CERTIFICATE OF
5 RECEIPT SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER
6 PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF SUCH
7 CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT OF THE AMOUNT OF SUCH
8 CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED SEVENTY-FIVE PERCENT OF
9 THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE IN THE TAXABLE YEAR,
10 AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY THE TAXPAYER.
11 (B) SUCH CONTRIBUTIONS SHALL BE DEPOSITED IN A SEPARATE ACCOUNT.
12 (C) IF MADE TO A PUBLIC SCHOOL DISTRICT SUCH CONTRIBUTIONS SHALL BE
13 SUPERVISED BY A PERSON SO DESIGNATED BY THE CHANCELLOR OR SUPERINTEN-
14 DENT. IF MADE TO A PARTICULAR SCHOOL THEY SHALL BE SUPERVISED BY THE
15 SCHOOL PRINCIPAL. REPORTS OF DEPOSITS AND DISBURSEMENTS SHALL BE MADE TO
16 THE LOCAL BOARD OF EDUCATION ANNUALLY. CHARTER SCHOOLS SHALL MAKE SUCH
17 REPORTS TO THE RESPECTIVE CHARTER SCHOOL BOARD OF TRUSTEES.
18 47. CONTRIBUTIONS TO LOCAL EDUCATION FUND CREDIT. (A) FOR TAXABLE
19 YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A
20 CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY
21 THE TAXPAYER DURING THE TAXABLE YEAR TO A LOCAL EDUCATION FUND. A
22 TAXPAYER WHO SUBMITS WITH HIS OR HER TAX RETURN AN AUTHORIZED CERTIF-
23 ICATE OF RECEIPT SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFT-
24 ER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
25 (B) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
26 OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
27 SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
28 IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
29 THE TAXPAYER.
30 (C) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
31 EDUCATION FUND FOR THE BENEFIT OF A DESIGNATED STUDENT.
32 48. CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATION CREDIT. A
33 CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS MADE BY
34 THE TAXPAYER DURING THE TAXABLE YEAR TO AN EDUCATIONAL SCHOLARSHIP
35 ORGANIZATION. A TAXPAYER WHO SUBMITS WITH HIS OR HER TAX RETURN AN
36 AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE ALLOWED A CREDIT, TO BE
37 COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTI-
38 CLE.
39 (A) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
40 OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED SEVENTY-FIVE
41 PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE IN THE TAXA-
42 BLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY THE
43 TAXPAYER.
44 (B) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
45 EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE BENEFIT OF A DESIGNATED
46 PUPIL.
47 (C) SCHOLARSHIP AMOUNT. (1) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY
48 AWARD A SCHOLARSHIP TO A NON-DISTRICT RESIDENT ELIGIBLE PUPIL ATTENDING
49 A PUBLIC SCHOOL OPERATED BY A SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED
50 THE TUITION CHARGED BY THE PARTICIPATING PUBLIC SCHOOL PURSUANT TO PARA-
51 GRAPH D OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE
52 EDUCATION LAW; PROVIDED, HOWEVER THAT A SCHOLARSHIP SHALL NOT BE AVAIL-
53 ABLE IN ANY CASE WHERE THE RESIDENT DISTRICT OF SUCH PUPIL IS LIABLE FOR
54 SUCH TUITION.
55 (2) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD A SCHOLARSHIP TO A
56 PUPIL ENROLLED IN A PUBLIC SCHOOL, INCLUDING A CHARTER SCHOOL, OR AN
A. 5081--B 8
1 ELIGIBLE NON-PUBLIC SCHOOL IN AN AMOUNT NOT TO EXCEED THE TUITION AMOUNT
2 OF THE ELIGIBLE NON-PUBLIC SCHOOL, PROVIDED, HOWEVER, THAT THE TOTAL
3 AMOUNT OF SUCH TAX CREDITS SHALL NOT EXCEED THE AMOUNT OF AVAILABLE TAX
4 CREDITS FOR EDUCATIONAL SCHOLARSHIP ORGANIZATIONS SET FORTH IN PARAGRAPH
5 SIX OF SUBDIVISION TWENTY-NINTH OF SECTION ONE HUNDRED SEVENTY-ONE OF
6 THIS CHAPTER.
7 S 5. Section 171 of the tax law is amended by adding a new subdivision
8 twenty-ninth to read as follows:
9 TWENTY-NINTH. FOR THE PURPOSE OF IMPLEMENTING THE PROVISIONS OF
10 SUBSECTIONS (U), (V), (W), (W-1), (W-2) AND (W-3) OF SECTION SIX HUNDRED
11 SIX AND SUBDIVISIONS FORTY-FIVE, FORTY-SIX, FORTY-SEVEN AND FORTY-EIGHT
12 OF SECTION TWO HUNDRED TEN OF THIS CHAPTER THE COMMISSIONER SHALL:
13 (1) MAINTAIN A LIST OF PUBLIC SCHOOL DISTRICTS, INDIVIDUAL PUBLIC
14 SCHOOLS, INCLUDING CHARTER SCHOOLS, LOCAL EDUCATION FUNDS, AND EDUCA-
15 TIONAL SCHOLARSHIP ORGANIZATIONS; AND
16 (2) APPROVE TAX CREDITS ON A FIRST-COME, FIRST-SERVE BASIS FROM EACH
17 TAXPAYER WHO SUBMITS TO THE DEPARTMENT AN APPLICATION PREPARED BY THE
18 COMMISSIONER WHEREIN THE TAXPAYER SHALL SPECIFY EACH TAX FOR WHICH THE
19 TAXPAYER REQUESTS A CREDIT AND THE APPLICABLE TAXABLE YEAR FOR A CREDIT,
20 SUBJECT TO THE LIMITS SET FORTH IN PARAGRAPH SIX OF THIS SUBDIVISION;
21 AND
22 (3) UPON NOTIFICATION BY THE CHIEF EXECUTIVE OFFICER OF ANY EDUCATION
23 ENTITY SO LISTED THAT A CONTRIBUTION HAS BEEN RECEIVED, SUCH NOTIFICA-
24 TION BEING WITHIN ONE BUSINESS DAY OF SAID RECEIPT, RECORD THE AMOUNT
25 AND DATE OF THE CONTRIBUTION, THE NAME AND ADDRESS OF THE CONTRIBUTOR;
26 AND
27 (4) UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF INSTRUCTIONAL
28 MATERIALS FOR NON-PUBLIC HOME-BASED EDUCATIONAL PROGRAMS, RECORD THE
29 AMOUNT AND DATE OF THE NOTIFICATION, THE NAME AND ADDRESS OF THE CLAIM-
30 ANT; AND
31 (5) UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF THE CLASSROOM
32 INSTRUCTIONAL MATERIALS AND SUPPLIES FOR USE IN A PUBLIC SCHOOL, INCLUD-
33 ING A CHARTER SCHOOL, OR AN ELIGIBLE NON-PUBLIC SCHOOL, RECORD THE
34 AMOUNT AND DATE OF THE NOTIFICATION AND THE NAME AND ADDRESS OF THE
35 CLAIMANT; AND
36 (6) MAKE NO MORE THAN TWO HUNDRED FIFTY MILLION DOLLARS IN CREDITS
37 AVAILABLE IN ANY SINGLE TAX YEAR, PROVIDED THAT FIFTY PERCENT OF SUCH
38 CREDITS SHALL BE AFFORDED TO TAXPAYERS WHO MAKE DONATIONS TO PUBLIC
39 EDUCATION ENTITIES AND LOCAL EDUCATION FUNDS, AND FOR THE PURCHASE BY
40 SCHOOL PERSONNEL, OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES, AND
41 THAT FIFTY PERCENT OF SUCH CREDITS SHALL BE AFFORDED TO EDUCATION SCHOL-
42 ARSHIP ORGANIZATIONS AND FOR HOME-BASED INSTRUCTIONAL MATERIALS,
43 PROVIDED FURTHER, THAT BEGINNING IN TAX YEAR TWO THOUSAND FOURTEEN AND
44 ANNUALLY THEREAFTER, MAKE NO MORE THAN THREE HUNDRED MILLION DOLLARS IN
45 CREDITS AVAILABLE IN ANY SINGLE TAX YEAR, PROVIDED THAT FIFTY PERCENT OF
46 SUCH CREDITS SHALL BE AFFORDED TO TAXPAYERS WHO MAKE DONATIONS TO PUBLIC
47 EDUCATION ENTITIES AND LOCAL EDUCATION FUNDS, AND FOR THE PURCHASE BY
48 SCHOOL PERSONNEL OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES, AND
49 THAT FIFTY PERCENT OF SUCH CREDITS SHALL BE AFFORDED TO EDUCATIONAL
50 SCHOLARSHIP ORGANIZATIONS AND FOR HOME-BASED INSTRUCTIONAL MATERIALS;
51 AND
52 (7) ISSUE TO TAXPAYERS ALL AUTHORIZED CERTIFICATES OF RECEIPT FOR ALL
53 ELIGIBLE CREDITS NO LATER THAN JANUARY THIRTY-FIRST FOR CREDITS CLAIMED
54 FOR THE PREVIOUS CALENDAR YEAR; AND
55 (8) DISALLOW THE PORTION OF THE CREDIT EQUAL TO THE AMOUNT SAVED FROM
56 THE FEDERAL TAX LIABILITY OF THE TAXPAYER FROM THE CHARITABLE CONTRIB-
A. 5081--B 9
1 UTION TO A QUALIFIED ORGANIZATION UNDER SECTION FIVE HUNDRED ONE (C)(3)
2 OF THE INTERNAL REVENUE CODE OF THE UNITED STATES.
3 S 6. Excess contributions. Contributions exceeding the allowed annual
4 maximum of the amount set forth in subdivision 29th of section 171 of
5 the tax law to public educational entities, local educational funds and
6 for the purchase of classroom instructional materials and supplies for
7 use in a public school, including a charter school, or an eligible non-
8 public school; or the allowed annual maximum of the amount set forth in
9 subdivision 29th of section 171 of the tax law to education scholarship
10 organizations and for the purchase of home-based instructional materi-
11 als, shall be applied to the following tax year, and the donor so noti-
12 fied within one business day.
13 S 7. The department of taxation and finance shall prepare a written
14 report before January 31 of each calendar year, which shall contain
15 statistical information regarding the credits allowed pursuant to
16 subsections (u), (v), (w), (w-1), (w-2) and (w-3) of section 606 and
17 subdivisions 45, 46, 47 and 48 of section 210 of the tax law as added by
18 sections three and four of this act, for the previous calendar year.
19 Copies of such report shall be submitted to the governor, the temporary
20 president of the senate, the speaker of the assembly, the chair of the
21 senate finance committee and the chair of the assembly ways and means
22 committee. Such reports shall contain, but need not be limited to, the
23 number of credits by type and the amount of such credits allowed to
24 taxpayers.
25 S 8. This act shall not be construed to authorize the commissioner of
26 education or the commissioner of taxation and finance to impose any
27 regulation or requirement on the educational program, instruction or
28 activities of an eligible non-public school that receives funding on
29 behalf of an eligible pupil from an educational scholarship organization
30 pursuant to this act, unless specifically authorized by this act.
31 S 9. This act shall take effect immediately.
