Establishes an education investment tax credit.

---

S2732C-2011 Actions

• Jun 12, 2012: referred to ways and means
• Jun 12, 2012: DELIVERED TO ASSEMBLY
• Jun 12, 2012: PASSED SENATE
• Jun 12, 2012: ORDERED TO THIRD READING CAL.1185
• Jun 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• May 17, 2012: PRINT NUMBER 2732C
• May 17, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Mar 27, 2012: PRINT NUMBER 2732B
• Mar 27, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 13, 2012: PRINT NUMBER 2732A
• Jan 13, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: returned to senate
• Jan 4, 2012: died in assembly
• Jun 21, 2011: referred to ways and means
• Jun 21, 2011: DELIVERED TO ASSEMBLY
• Jun 21, 2011: PASSED SENATE
• Jun 21, 2011: ORDERED TO THIRD READING CAL.1453
• Jun 21, 2011: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Jun 2, 2011: REPORTED AND COMMITTED TO FINANCE
• Jan 31, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2732C-2011 Meetings

Rules: Jun 18, 2012

S2732C-2011 Calendars

Floor Calendar: Jun 12, 2012

S2732C-2011 Votes

S2732C-2011 Memo

BILL NUMBER:S2732C

TITLE OF BILL:
An act
to amend the tax law, in relation to
enacting the "education investment incentives act"

PURPOSE OR GENERAL IDEA OF BILL:
This bill would authorize a tax credit up to seventy-five percent of
either personal income tax liability or corporate franchise tax
liability for donations to public education entities, local education
funds, and educational scholarship organizations, or up to $75 for
certain expenses incurred by school personnel and parents who educate
their children at home.

SUMMARY OF SPECIFIC PROVISIONS:
Section 3 amends section 606 of the tax law for the purposes of
receiving voluntary cash contribution by defining "public education
entity"; as any public school district; an individual public school,
including a charter school; a nonprofit organization for the purpose
of providing programming for performing arts, visual arts, civic
instruction, pre- kindergarten instruction, or any other educational
purpose within such schools; a nonprofit organization that allows
donors to choose school projects for charitable support that are
identified by teachers or other school personnel; and the university
of the state of New York research fund.

"Local education fund" is defined as a charitable organization in this
state that is exempt from federal taxation under section 501(c)(3) of
the Internal Revenue Code and is established for the explicit purpose
of supporting at least one public school, including a charter school,
or a specific public school district.

"Educational scholarship organization" is defined as a charitable
organization in this state that is exempt from federal taxation under
section 501(c)(3) of the Internal Revenue Code, that allocates at
least ninety percent of its donations for educational scholarships.

Section 3 limits the amount of the tax credit to seventy-five percent
of the taxpayer's tax liability, and also provides for a tax credit
for up to $75 for the purchase of instructional materials and
classroom supplies for schools by school personnel, or for non-public
home-based instruction.

Section 4 amends section 210 of the tax law by defining for the
purposes of receiving voluntary cash contributions, "public education
entity", "local education fund", and "educational scholarship
organization".

Section 5 requires approval of tax credits on a first-come,
first-served basis and provides that no taxpayer may apply for a

credit in excess of 5% of $125 million for tax year 2013, and in
excess of 5% of $150 million for tax years thereafter.

Further, section 5 disallows the portion of the credit equal to the
amount saved from the federal tax liability given a taxpayer's
donation to an IRS recognized 501(c)(3) charitable organization.

Section 5 also provides that fifty percent of the available credits be
afforded to taxpayers donating to public education entities, local
education funds, and for the purchase by school personnel for
classroom instructional material and supplies, and that fifty percent
be afforded to educational scholarship organizations and for
home-based instructional materials.

Section 6 imposes reporting requirements of the tax credits from the
department of taxation and finance to the governor, temporary
president of the senate, speaker of the assembly, and chairs of the
senate finance, and assembly ways and means committees.

Section 7 restricts the commissioners of education and taxation &
finance from imposing additional regulations on educational programs
in receipt of funding from educational scholarship organizations.

Section 8 provides that this act shall take effect immediately.

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 stimulated. permitting public education entities
such as school districts and individual public schools, including
charter 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 bill promotes the state's
interest in providing the highest quality education to all children
in the state. The tax credit does not constitute public aid to
non-public sectarian institutions. Permitting school personnel to
claim a credit for the purchase of classroom instructional materials
and supplies will insure a wider availability of such materials and
supplies for all students.

PRIOR LEGISLATIVE HISTORY:
2012:    A.5081 Referred to Ways and Means, S.2732 Referred to
         Investigations & Government Operations
2011:    Died in Assembly, Passed Senate
2009-10: Similar to A.10862 - Died in Ways and Means Similar
         to S.5146 - Died in Finance

FISCAL IMPLICATIONS:

The Department of Taxation & Finance has yet to project a first-year
revenue reduction.
However, the total tax credit available is capped at $250 million for
the 2013 tax year. The total available credit increases to $300
million in 2014 tax year, and annually thereafter.

EFFECTIVE DATE:
This act shall take effect immediately.

S2732C-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   2732--C

                         2011-2012 Regular Sessions

                              I N  SENATE

                              January 31, 2011
                                 ___________

  Introduced   by   Sens.   GOLDEN,   ADAMS,  ADDABBO,  GRISANTI,  HANNON,
    HASSELL-THOMPSON, MARTINS, MAZIARZ -- read twice and ordered  printed,
    and  when  printed  to be committed to the Committee on Investigations
    and Government Operations -- recommitted to the Committee on  Investi-
    gations  and  Government  Operations in accordance with Senate Rule 6,
    sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
    amended  and  recommitted  to  said committee -- committee discharged,
    bill amended, ordered reprinted as amended  and  recommitted  to  said
    committee  -- committee discharged, bill amended, 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:


    Section 1. Short title. This act shall be known and may  be  cited  as
  the "education investment incentives act".
    S 2. Legislative findings and intent. The legislature hereby finds and
  declares that:

    a.  At  a  time when the state is considering ways of reducing the tax
  burden for New York state residents and educators are seeking an  expan-
  sion  of financial resources, charitable giving for educational purposes
  should be stimulated;
    b. Permitting public education entities such as school  districts  and
  individual  public  schools,  including  charter  schools, to accept and
  receive voluntary cash contributions will lessen the need for additional
  tax revenue;
    c. Encouraging voluntary support for education, without prejudice  for
  or  against  any  state-sanctioned  educational enterprise, promotes the
  state's interest in providing the highest quality education to all chil-
  dren in the state;

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD05643-13-2

 S. 2732--C                          2

    d. Requiring a sharing of resources among school districts will insure
  a more equitable distribution of financial support;
    e.  The  tax credit provided in this act is merely one of many credits
  available to New York taxpayers;
    f. The intended beneficiaries of the tax credit provided in  this  act
  are  the  students who attend public schools, including charter schools,
  or who further their educations using tuition scholarships  from  educa-
  tional  scholarship  organizations,  or  who  participate  in home-based
  educational programs; therefore  the  tax  credit  does  not  constitute
  public aid to non-public sectarian institutions;
    g.  Permitting  school personnel to claim a credit for the purchase of
  classroom instructional materials  and  supplies  will  insure  a  wider
  availability of such materials and supplies for all students.
    S  3.  Section  606  of  the  tax  law  is  amended  by adding six new
  subsections (u), (v), (w), (w-1), (w-2) and (w-3) to read as follows:

    (U) DEFINITIONS. AS USED IN SUBSECTIONS (V),  (W),  (W-1),  (W-2)  AND
  (W-3)  OF  THIS  SECTION,  THE  FOLLOWING TERMS SHALL HAVE THE FOLLOWING
  MEANINGS:

    (1) "PUBLIC EDUCATION ENTITY" SHALL MEAN ANY PUBLIC SCHOOL DISTRICT OR
  ANY INDIVIDUAL PUBLIC SCHOOL, INCLUDING ANY CHARTER SCHOOL; A  NONPROFIT
  ORGANIZATION  FOR  THE  PURPOSE  OF PROVIDING PROGRAMMING FOR PERFORMING
  ARTS, VISUAL ARTS, CIVIC INSTRUCTION, PRE-KINDERGARTEN  INSTRUCTION,  OR
  ANY OTHER EDUCATIONAL PURPOSE WITHIN SUCH SCHOOLS; A NONPROFIT ORGANIZA-
  TION THAT ALLOWS DONORS TO CHOOSE SCHOOL PROJECTS FOR CHARITABLE SUPPORT
  THAT  ARE  IDENTIFIED  BY  TEACHERS  OR  OTHER SCHOOL PERSONNEL; AND THE
  UNIVERSITY OF THE STATE OF NEW YORK RESEARCH FUND.
    (2) "LOCAL EDUCATION FUND" SHALL MEAN  A  CHARITABLE  ORGANIZATION  IN
  THIS STATE THAT:

    (A)  IS  EXEMPT  FROM FEDERAL TAXATION UNDER SECTION 501 (C)(3) OF THE
  INTERNAL REVENUE CODE; AND
    (B) IS ESTABLISHED FOR THE EXPLICIT PURPOSE OF SUPPORTING AT LEAST ONE
  PUBLIC SCHOOL, INCLUDING A CHARTER SCHOOL, OR A SPECIFIC  PUBLIC  SCHOOL
  DISTRICT.
    (3)  "EDUCATIONAL  SCHOLARSHIP  ORGANIZATION"  SHALL MEAN A CHARITABLE
  ORGANIZATION IN THIS STATE THAT:

    (A) IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501  (C)(3)  OF  THE
  INTERNAL REVENUE CODE;
    (B) ALLOCATES AT LEAST NINETY PERCENT OF DONATIONS FOR WHICH TAX CRED-
  ITS  ARE  CLAIMED UNDER SUBSECTION (W-3) OF THIS SECTION FOR EDUCATIONAL
  SCHOLARSHIPS;
    (C) MAKES EDUCATIONAL SCHOLARSHIPS  OR  TUITION  GRANTS  AVAILABLE  TO
  CHILDREN FROM MORE THAN ONE PUBLIC OR ELIGIBLE NON-PUBLIC SCHOOL; AND
    (D)  REPORTS  ANNUALLY  TO THE DEPARTMENT THE GROSS RECEIPTS AND GROSS
  AMOUNT EXPENDED FOR SCHOLARSHIPS AND TUITION GRANTS.
    (4) "ELIGIBLE NON-PUBLIC SCHOOL" SHALL MEAN AN  INDEPENDENT  SECTARIAN
  OR NON-SECTARIAN PRIMARY OR SECONDARY SCHOOL OR PRE-KINDERGARTEN PROGRAM
  THAT   IS  LOCATED  IN  THIS  STATE,  THAT  SATISFIES  THE  REQUIREMENTS
  PRESCRIBED BY APPLICABLE LAW FOR SUCH SCHOOLS IN THIS  STATE,  AND  THAT
  HAS  QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501 (C)(3) OF THE
  INTERNAL REVENUE CODE.
    (5) "AUTHORIZED CERTIFICATE  OF  RECEIPT"  SHALL  MEAN  A  CERTIFICATE
  DESIGNED BY THE COMMISSIONER FOR THE PURPOSE OF ACKNOWLEDGING RECEIPT OF
  A  CHARITABLE  CONTRIBUTION  BY THE CHIEF EXECUTIVE OFFICER OF AN EDUCA-
  TIONAL SCHOLARSHIP ORGANIZATION.
    (6) "ELIGIBLE PUPIL" SHALL MEAN A PUPIL WHO IS A RESIDENT OF THE STATE
  OF NEW YORK AND OF AGE TO ATTEND SCHOOL IN ACCORDANCE  WITH  SUBDIVISION

 S. 2732--C                          3

  ONE  OF  SECTION  THIRTY-TWO  HUNDRED TWO OF THE EDUCATION LAW OR WHO IS
  FOUR YEARS OF AGE ON OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH  THEY
  ARE ENROLLED IN A PRE-KINDERGARTEN PROGRAM.
    (V) CONTRIBUTIONS TO PUBLIC EDUCATION CREDIT. FOR TAXABLE YEARS BEGIN-
  NING  ON  OR  AFTER  JANUARY  FIRST,  TWO THOUSAND THIRTEEN, A CREDIT IS
  ALLOWED FOR VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAYER DURING THE
  TAXABLE YEAR TO A PUBLIC EDUCATION ENTITY. ACCEPTANCE AND RECEIPT OF ALL
  SUCH CONTRIBUTIONS SHALL  BE  PERMITTED.  A  TAXPAYER  WHO  RECEIVES  AN
  AUTHORIZED  CERTIFICATE  OF  RECEIPT  SHALL  BE  ALLOWED A CREDIT, TO BE
  COMPUTED  AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTI-
  CLE.
    (1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE  HUNDRED  PERCENT
  OF  THE  AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
  SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
  IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
  THE TAXPAYER.
    A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER OF  A  PARTNER-
  SHIP  (OR OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX PURPOSES)
  SHALL BE TREATED AS THE TAXPAYER WITH RESPECT TO  HIS  OR  HER  PRO-RATA
  SHARE  OF THE TAX CREDIT ALLOWABLE TO SUCH S CORPORATION OR PARTNERSHIP,
  DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE YEAR  ENDING
  WITH  OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE YEAR. THE MAXIMUM
  AMOUNT OF THE CREDIT FOR SUCH S CORPORATION OR PARTNERSHIP SHALL BE  THE
  SAME  AS  THAT  ALLOWABLE  TO CORPORATIONS UNDER SUBDIVISIONS FORTY-SIX,
  FORTY-SEVEN AND FORTY-EIGHT OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
    (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
  WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
  OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
    (3)  IF  THE  ALLOWABLE TAX CREDIT EXCEEDS SEVENTY-FIVE PERCENT OF THE
  TAXES OTHERWISE DUE UNDER THIS ARTICLE ON THE TAXPAYER'S INCOME,  OR  IF
  THERE  ARE  NO  TAXES DUE UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE
  AMOUNT OF THE CREDIT NOT USED TO OFFSET THE  TAXES  UNDER  THIS  ARTICLE
  FORWARD FOR NOT MORE THAN FIVE YEARS' INCOME TAX LIABILITY.
    (4)  CONTRIBUTIONS  IN ANY TAXABLE YEAR THAT RECEIVE A CREDIT PURSUANT
  TO THIS SUBSECTION  SHALL  NOT  BE  CONSIDERED  ELIGIBLE  DEDUCTIONS  AS
  ALLOWED  UNDER  THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS. CONTRIBUTIONS
  IN EXCESS OF SEVENTY-FIVE PERCENT OF A TAXPAYER'S TAX LIABILITY  IN  ANY
  TAXABLE YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGI-
  BLE  DEDUCTIONS  AS  ALLOWED  UNDER THIS ARTICLE FOR CHARITABLE CONTRIB-
  UTIONS.
    (5) SUCH CONTRIBUTIONS SHALL BE DEPOSITED IN A SEPARATE ACCOUNT.
    (6) IF MADE TO A PUBLIC SCHOOL DISTRICT SUCH  CONTRIBUTIONS  SHALL  BE
  SUPERVISED  BY  A  PERSON SO DESIGNATED BY THE CHANCELLOR OR SUPERINTEN-
  DENT. IF MADE TO A PARTICULAR SCHOOL THEY SHALL  BE  SUPERVISED  BY  THE
  SCHOOL PRINCIPAL. REPORTS OF DEPOSITS AND DISBURSEMENTS SHALL BE MADE TO
  THE  LOCAL  BOARD OF EDUCATION ANNUALLY. CHARTER SCHOOLS SHALL MAKE SUCH
  REPORTS TO THE RESPECTIVE CHARTER SCHOOL BOARD OF TRUSTEES, AS  APPLICA-
  BLE.
    (W)  CONTRIBUTIONS TO LOCAL EDUCATION FUND CREDIT. IN LIEU OF CONTRIB-
  UTIONS IN SUBSECTION (V) OF THIS SECTION, A CREDIT IS ALLOWED FOR  TAXA-
  BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN FOR
  THE  AMOUNT  OF VOLUNTARY CASH CONTRIBUTIONS MADE BY THE TAXPAYER DURING
  THE TAXABLE YEAR TO A LOCAL EDUCATION FUND. A TAXPAYER WHO  RECEIVES  AN
  AUTHORIZED  CERTIFICATE  OF  RECEIPT  SHALL  BE  ALLOWED A CREDIT, TO BE
  COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS  ARTI-
  CLE.

 S. 2732--C                          4

    (1)  THE  AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
  OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT  TO  EXCEED
  SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
  IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
  THE TAXPAYER.  A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER OF
  A  PARTNERSHIP  (OR OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX
  PURPOSES) SHALL BE TREATED AS THE TAXPAYER WITH RESPECT TO  HIS  OR  HER
  PRO-RATA  SHARE  OF  THE  TAX  CREDIT ALLOWABLE TO SUCH S CORPORATION OR
  PARTNERSHIP, DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE
  YEAR ENDING WITH OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE  YEAR.
  THE  MAXIMUM  AMOUNT OF THE CREDIT FOR SUCH S CORPORATION OR PARTNERSHIP
  SHALL BE THE SAME AS THAT ALLOWABLE TO CORPORATIONS  UNDER  SUBDIVISIONS
  FORTY-SIX,  FORTY-SEVEN  AND  FORTY-EIGHT  OF SECTION TWO HUNDRED TEN OF
  THIS CHAPTER.
    (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
  WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
  OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
    (3)  IF  THE  ALLOWABLE TAX CREDIT EXCEEDS SEVENTY-FIVE PERCENT OF THE
  TAXES OTHERWISE DUE UNDER THIS ARTICLE ON THE TAXPAYER'S INCOME,  OR  IF
  THERE  ARE  TAXES  DUE  UNDER  THIS  ARTICLE, THE TAXPAYER MAY CARRY THE
  AMOUNT OF THE CREDIT NOT USED TO OFFSET THE  TAXES  UNDER  THIS  ARTICLE
  FORWARD FOR NOT MORE THAN FIVE YEARS' INCOME TAX LIABILITY.
    (4)  CONTRIBUTIONS  IN ANY TAXABLE YEAR THAT RECEIVE A CREDIT PURSUANT
  TO THIS SUBSECTION SHALL BE CONSIDERED ELIGIBLE  DEDUCTIONS  AS  ALLOWED
  UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS. CONTRIBUTIONS IN EXCESS
  OF  SEVENTY-FIVE  PERCENT  OF  A TAXPAYERS' TAX LIABILITY IN ANY TAXABLE
  YEAR THAT DO NOT RECEIVE A  TAX  CREDIT  SHALL  BE  CONSIDERED  ELIGIBLE
  DEDUCTIONS AS ALLOWED UNDER THIS ARTICLE FOR CHARITABLE CONTRIBUTIONS.
    (5) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
  EDUCATION FUND FOR THE BENEFIT OF A DESIGNATED STUDENT.
    (W-1)  HOME-BASED  INSTRUCTIONAL MATERIALS CREDIT. IN LIEU OF CONTRIB-
  UTIONS IN SUBSECTIONS (V) AND (W) OF THIS SECTION, A CREDIT  IS  ALLOWED
  FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
  THIRTEEN FOR THE PURCHASE  OF  INSTRUCTIONAL  MATERIALS  FOR  NON-PUBLIC
  HOME-BASED  EDUCATIONAL  PROGRAMS.  THIS  CREDIT  SHALL BE VALUED AT ONE
  HUNDRED PERCENT OF SUCH PURCHASES.
    (1) THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED SEVENTY-FIVE DOLLARS IN
  ANY TAXABLE YEAR.
    (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
  WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
  OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
    (3)  IF THE ALLOWABLE TAX CREDIT EXCEEDS THE TAXES OTHERWISE DUE UNDER
  THIS ARTICLE ON THE TAXPAYER'S INCOME, OR IF  THERE  ARE  NO  TAXES  DUE
  UNDER  THIS ARTICLE, THE TAXPAYER MAY CARRY THE AMOUNT OF THE CREDIT NOT
  USED TO OFFSET THE TAXES UNDER THIS ARTICLE FORWARD FOR  NOT  MORE  THAN
  FIVE YEARS' INCOME TAX LIABILITY.
    (4)  THE  TAXPAYER SHALL BE RESPONSIBLE FOR NOTIFYING THE COMMISSIONER
  OF THE INTENTION TO CLAIM THE ALLOWABLE CREDIT, NO LATER  THAN  DECEMBER
  THIRTY-FIRST.
    (W-2) CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. FOR TAXA-
  BLE  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN, A
  CREDIT IS ALLOWED FOR THE  PERSONNEL  EMPLOYED  IN  ANY  PUBLIC  SCHOOL,
  INCLUDING  ANY  CHARTER SCHOOL, OR IN ANY ELIGIBLE NON-PUBLIC SCHOOL FOR
  THE PURCHASE OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES.
    (1) THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED SEVENTY-FIVE DOLLARS IN
  ANY TAXABLE YEAR.

 S. 2732--C                          5

    (2) THE TAXPAYER SHALL BE RESPONSIBLE FOR NOTIFYING  THE  COMMISSIONER
  OF  THE  INTENTION TO CLAIM THE ALLOWABLE CREDIT, NO LATER THAN DECEMBER
  THIRTY-FIRST, INDICATING WHETHER THE PURCHASE WAS  MADE  FOR  USE  IN  A
  PUBLIC  SCHOOL,  INCLUDING  A  CHARTER SCHOOL, OR AN ELIGIBLE NON-PUBLIC
  SCHOOL.
    (W-3) CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATION CREDIT. IN
  LIEU  OF  CONTRIBUTIONS  IN SUBSECTIONS (V) AND (W) OF THIS SECTION, FOR
  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  THIR-
  TEEN, A CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS
  MADE  BY THE TAXPAYER DURING THE TAXABLE YEAR TO AN EDUCATIONAL SCHOLAR-
  SHIP ORGANIZATION. A TAXPAYER WHO RECEIVES AN AUTHORIZED CERTIFICATE  OF
  RECEIPT  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED AS HEREINAFTER
  PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
    (1) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE  HUNDRED  PERCENT
  OF  THE  AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT TO EXCEED
  SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
  IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
  THE TAXPAYER. A SHAREHOLDER OF A NEW YORK S CORPORATION OR A PARTNER  OF
  A  PARTNERSHIP  (OR OTHER ENTITY TREATED AS A PARTNERSHIP FOR INCOME TAX
  PURPOSES) SHALL BE TREATED AS THE TAXPAYER WITH RESPECT TO  HIS  OR  HER
  PRO-RATA  SHARE  OF  THE  TAX  CREDIT ALLOWABLE TO SUCH S CORPORATION OR
  PARTNERSHIP, DETERMINED FOR THE S CORPORATION'S OR PARTNERSHIP'S TAXABLE
  YEAR ENDING WITH OR WITHIN THE SHAREHOLDER'S OR PARTNER'S TAXABLE  YEAR.
  THE  MAXIMUM  AMOUNT OF THE CREDIT FOR SUCH S CORPORATION OR PARTNERSHIP
  SHALL BE THE SAME AS THAT ALLOWABLE TO CORPORATIONS  UNDER  SUBDIVISIONS
  FORTY-SIX,  FORTY-SEVEN  AND  FORTY-EIGHT  OF SECTION TWO HUNDRED TEN OF
  THIS CHAPTER.
    (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
  WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
  OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
    (3)  IF  THE  ALLOWABLE TAX CREDIT EXCEEDS SEVENTY-FIVE PERCENT OF THE
  TAXES OTHERWISE DUE UNDER THIS ARTICLE ON THE TAXPAYER'S INCOME,  OR  IF
  THERE  ARE  NO  TAXES DUE UNDER THIS ARTICLE, THE TAXPAYER MAY CARRY THE
  AMOUNT OF CREDIT NOT USED TO OFFSET THE TAXES UNDER THIS ARTICLE FORWARD
  FOR NOT MORE THAN FIVE YEARS' INCOME TAX LIABILITY.
    (4) CONTRIBUTIONS IN ANY TAXABLE YEAR THAT RECEIVE A  CREDIT  PURSUANT
  TO  THIS  SUBSECTION  SHALL  NOT  BE  CONSIDERED  ELIGIBLE DEDUCTIONS AS
  ALLOWED UNDER THIS ARTICLE FOR CHARITABLE  CONTRIBUTIONS.  CONTRIBUTIONS
  IN  EXCESS  OF SEVENTY-FIVE PERCENT OF A TAXPAYERS' TAX LIABILITY IN ANY
  TAXABLE YEAR THAT DO NOT RECEIVE A TAX CREDIT SHALL BE CONSIDERED ELIGI-
  BLE DEDUCTIONS AS ALLOWED UNDER THIS  ARTICLE  FOR  CHARITABLE  CONTRIB-
  UTIONS.
    (5)  THIS  TAX  CREDIT  MAY  NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
  EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE  BENEFIT  OF  A  DESIGNATED
  PUPIL.
    (6) SCHOLARSHIP AMOUNT.
    (A) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD A SCHOLARSHIP TO A
  NON-DISTRICT  RESIDENT ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL OPERATED
  BY A SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED THE TUITION  CHARGED  BY
  THE  PARTICIPATING  PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION
  FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION  LAW,  PROVIDED,
  HOWEVER  THAT A SCHOLARSHIP SHALL NOT BE AVAILABLE IN ANY CASE WHERE THE
  RESIDENT DISTRICT OF SUCH PUPIL IS LIABLE FOR SUCH TUITION.
    (B) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD AN ELIGIBLE SCHOL-
  ARSHIP TO A PUPIL ENROLLED IN  A  PUBLIC  SCHOOL,  INCLUDING  A  CHARTER
  SCHOOL,  OR  A  NON-PUBLIC SCHOOL IN AN AMOUNT NOT TO EXCEED THE TUITION

 S. 2732--C                          6

  AMOUNT OF THE ELIGIBLE NON-PUBLIC SCHOOL, PROVIDED,  HOWEVER,  THAT  THE
  TOTAL  AMOUNT  OF SUCH TAX CREDITS SHALL NOT EXCEED THE AMOUNT OF AVAIL-
  ABLE TAX CREDITS FOR EDUCATIONAL SCHOLARSHIP ORGANIZATIONS SET FORTH  IN
  PARAGRAPH  SIX OF SUBDIVISION TWENTY-NINTH OF SECTION ONE HUNDRED SEVEN-
  TY-ONE OF THIS CHAPTER.
    S 4. Section 210 of the tax law is amended by adding four new subdivi-
  sions 45, 46, 47 and 48 to read as follows:

    45. DEFINITIONS. AS USED IN SUBDIVISIONS  FORTY-SIX,  FORTY-SEVEN  AND
  FORTY-EIGHT OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
  MEANINGS:

    (A) "PUBLIC EDUCATION ENTITY" SHALL MEAN ANY PUBLIC SCHOOL DISTRICT OR
  ANY  INDIVIDUAL PUBLIC SCHOOL, INCLUDING ANY CHARTER SCHOOL; A NONPROFIT
  ORGANIZATION FOR THE PURPOSE OF  PROVIDING  PROGRAMMING  FOR  PERFORMING
  ARTS,  VISUAL  ARTS, CIVIC INSTRUCTION, PRE-KINDERGARTEN INSTRUCTION, OR
  ANY OTHER EDUCATIONAL PURPOSE WITHIN SUCH SCHOOLS; A NONPROFIT ORGANIZA-
  TION THAT ALLOWS DONORS TO CHOOSE SCHOOL PROJECTS FOR CHARITABLE SUPPORT
  THAT ARE IDENTIFIED BY TEACHERS  OR  OTHER  SCHOOL  PERSONNEL;  AND  THE
  UNIVERSITY OF THE STATE OF NEW YORK RESEARCH FUND.
    (B)  "LOCAL  EDUCATION  FUND"  SHALL MEAN A CHARITABLE ORGANIZATION IN
  THIS STATE THAT:

    (1) IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)  (3)  OF  THE
  INTERNAL REVENUE CODE; AND
    (2) IS ESTABLISHED FOR THE EXPLICIT PURPOSE OF SUPPORTING AT LEAST ONE
  PUBLIC  SCHOOL,  INCLUDING A CHARTER SCHOOL, OR A SPECIFIC PUBLIC SCHOOL
  DISTRICT.
    (C) "EDUCATIONAL SCHOLARSHIP ORGANIZATION"  SHALL  MEAN  A  CHARITABLE
  ORGANIZATION IN THIS STATE THAT:

    (1)  IS  EXEMPT  FROM  FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE
  INTERNAL REVENUE CODE;
    (2) ALLOCATES AT LEAST NINETY PERCENT OF DONATIONS FOR  WHICH  CREDITS
  ARE  CLAIMED  UNDER  SUBDIVISION  FORTY-EIGHT OF THIS SECTION FOR EDUCA-
  TIONAL SCHOLARSHIPS;
    (3) MAKES EDUCATIONAL SCHOLARSHIPS  OR  TUITION  GRANTS  AVAILABLE  TO
  CHILDREN FROM MORE THAN ONE PUBLIC OR ELIGIBLE NON-PUBLIC SCHOOL; AND
    (4)  REPORTS  ANNUALLY  TO THE DEPARTMENT THE GROSS RECEIPTS AND GROSS
  AMOUNT EXPENDED FOR SCHOLARSHIPS AND TUITION GRANTS.
    (D) "ELIGIBLE NON-PUBLIC SCHOOL" SHALL MEAN AN  INDEPENDENT  SECTARIAN
  OR NON-SECTARIAN PRIMARY OR SECONDARY SCHOOL OR PRE-KINDERGARTEN PROGRAM
  THAT   IS  LOCATED  IN  THIS  STATE,  THAT  SATISFIES  THE  REQUIREMENTS
  PRESCRIBED BY APPLICABLE LAW FOR SUCH SCHOOLS IN THIS  STATE,  AND  THAT
  HAS  QUALIFIED  FOR FEDERAL TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE
  INTERNAL REVENUE CODE.
    (E) "AUTHORIZED CERTIFICATE  OF  RECEIPT"  SHALL  MEAN  A  CERTIFICATE
  DESIGNED BY THE COMMISSIONER FOR THE PURPOSE OF ACKNOWLEDGING RECEIPT OF
  A  CHARITABLE  CONTRIBUTION  BY  THE CHIEF EXECUTIVE OFFICER OF A PUBLIC
  EDUCATION ENTITY, OR OF A LOCAL EDUCATION  FUND  OR  OF  AN  EDUCATIONAL
  SCHOLARSHIP ORGANIZATION.
    (F) "ELIGIBLE PUPIL" SHALL MEAN A PUPIL WHO IS A RESIDENT OF THE STATE
  OF  NEW  YORK AND OF AGE TO ATTEND SCHOOL IN ACCORDANCE WITH SUBDIVISION
  ONE OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION  LAW  OR  WHO  IS
  FOUR  YEARS OF AGE ON OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH THEY
  ARE ENROLLED IN A PRE-KINDERGARTEN PROGRAM.
    46. CONTRIBUTIONS TO PUBLIC EDUCATION CREDIT. (A) IN LIEU OF  CONTRIB-
  UTIONS  IN SUBDIVISIONS FORTY-SEVEN AND FORTY-EIGHT OF THIS SECTION, FOR
  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  THIR-
  TEEN, A CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIBUTIONS

 S. 2732--C                          7

  MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO A PUBLIC EDUCATION ENTI-
  TY. ACCEPTANCE AND RECEIPT OF ALL SUCH CONTRIBUTIONS SHALL BE PERMITTED.
  A  TAXPAYER  WHO  RECEIVES AN AUTHORIZED CERTIFICATE OF RECEIPT SHALL BE
  ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
  TAX IMPOSED BY THIS ARTICLE.  THE AMOUNT OF SUCH CREDIT SHALL BE  VALUED
  AT  ONE HUNDRED PERCENT OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXA-
  BLE YEAR, NOT TO EXCEED SEVENTY-FIVE PERCENT OF THE  TAX  DUE  FROM  THE
  TAXPAYER  UNDER  THIS  ARTICLE IN THE TAXABLE YEAR, AFTER APPLICATION OF
  ANY OTHER ALLOWABLE CREDITS BY THE TAXPAYER.
    (B) SUCH CONTRIBUTIONS SHALL BE DEPOSITED IN A SEPARATE ACCOUNT.
    (C) IF MADE TO A PUBLIC SCHOOL DISTRICT SUCH  CONTRIBUTIONS  SHALL  BE
  SUPERVISED  BY  A  PERSON SO DESIGNATED BY THE CHANCELLOR OR SUPERINTEN-
  DENT. IF MADE TO A PARTICULAR SCHOOL THEY SHALL  BE  SUPERVISED  BY  THE
  SCHOOL PRINCIPAL. REPORTS OF DEPOSITS AND DISBURSEMENTS SHALL BE MADE TO
  THE  LOCAL  BOARD OF EDUCATION ANNUALLY. CHARTER SCHOOLS SHALL MAKE SUCH
  REPORTS TO THE RESPECTIVE CHARTER SCHOOL BOARD OF TRUSTEES.
    47. CONTRIBUTIONS TO LOCAL EDUCATION  FUND  CREDIT.  (A)  IN  LIEU  OF
  CONTRIBUTIONS IN SUBDIVISIONS FORTY-SIX AND FORTY-EIGHT OF THIS SECTION,
  FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
  THIRTEEN, A CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH  CONTRIB-
  UTIONS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR TO A LOCAL EDUCATION
  FUND. A TAXPAYER WHO RECEIVES AN AUTHORIZED CERTIFICATE OF RECEIPT SHALL
  BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
  TAX IMPOSED BY THIS ARTICLE.
    (B)  THE  AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE HUNDRED PERCENT
  OF THE AMOUNT OF SUCH CONTRIBUTIONS IN ANY TAXABLE YEAR, NOT  TO  EXCEED
  SEVENTY-FIVE PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE
  IN THE TAXABLE YEAR, AFTER APPLICATION OF ANY OTHER ALLOWABLE CREDITS BY
  THE TAXPAYER.
    (C) THIS TAX CREDIT MAY NOT BE CLAIMED FOR ANY CONTRIBUTION TO A LOCAL
  EDUCATION FUND FOR THE BENEFIT OF A DESIGNATED STUDENT.
    48.  CONTRIBUTIONS  TO EDUCATIONAL SCHOLARSHIP ORGANIZATION CREDIT. IN
  LIEU OF CONTRIBUTIONS IN SUBDIVISIONS FORTY-SIX AND FORTY-SEVEN OF  THIS
  SECTION,  A  CREDIT IS ALLOWED FOR THE AMOUNT OF VOLUNTARY CASH CONTRIB-
  UTIONS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR  TO  AN  EDUCATIONAL
  SCHOLARSHIP  ORGANIZATION. A TAXPAYER WHO RECEIVES AN AUTHORIZED CERTIF-
  ICATE OF RECEIPT SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFT-
  ER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
    (A) THE AMOUNT OF SUCH CREDIT SHALL BE VALUED AT ONE  HUNDRED  PERCENT
  OF  SUCH  CONTRIBUTIONS  IN ANY TAXABLE YEAR, NOT TO EXCEED SEVENTY-FIVE
  PERCENT OF THE TAX DUE FROM THE TAXPAYER UNDER THIS ARTICLE IN THE TAXA-
  BLE YEAR, AFTER APPLICATION  OF  ANY  OTHER  ALLOWABLE  CREDITS  BY  THE
  TAXPAYER.
    (B)  THIS  TAX  CREDIT  MAY  NOT BE CLAIMED FOR ANY CONTRIBUTION TO AN
  EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR THE  BENEFIT  OF  A  DESIGNATED
  PUPIL.
    (C)  SCHOLARSHIP AMOUNT. (1) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY
  AWARD A SCHOLARSHIP TO A NON-DISTRICT RESIDENT ELIGIBLE PUPIL  ATTENDING
  A PUBLIC SCHOOL OPERATED BY A SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED
  THE TUITION CHARGED BY THE PARTICIPATING PUBLIC SCHOOL PURSUANT TO PARA-
  GRAPH  D  OF  SUBDIVISION  FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE
  EDUCATION LAW; PROVIDED, HOWEVER THAT A SCHOLARSHIP SHALL NOT BE  AVAIL-
  ABLE IN ANY CASE WHERE THE RESIDENT DISTRICT OF SUCH PUPIL IS LIABLE FOR
  SUCH TUITION.
    (2) AN EDUCATION SCHOLARSHIP ORGANIZATION MAY AWARD A SCHOLARSHIP TO A
  PUPIL  ENROLLED  IN  A  PUBLIC SCHOOL, INCLUDING A CHARTER SCHOOL, OR AN

 S. 2732--C                          8

  ELIGIBLE NON-PUBLIC SCHOOL IN AN AMOUNT NOT TO EXCEED THE TUITION AMOUNT
  OF THE ELIGIBLE NON-PUBLIC SCHOOL, PROVIDED,  HOWEVER,  THAT  THE  TOTAL
  AMOUNT  OF SUCH TAX CREDITS SHALL NOT EXCEED THE AMOUNT OF AVAILABLE TAX
  CREDITS FOR EDUCATIONAL SCHOLARSHIP ORGANIZATIONS SET FORTH IN PARAGRAPH
  SIX  OF  SUBDIVISION  TWENTY-NINTH OF SECTION ONE HUNDRED SEVENTY-ONE OF
  THIS CHAPTER.
    S 5. Section 171 of the tax law is amended by adding a new subdivision
  twenty-ninth to read as follows:

    TWENTY-NINTH. FOR  THE  PURPOSE  OF  IMPLEMENTING  THE  PROVISIONS  OF
  SUBSECTIONS (U), (V), (W), (W-1), (W-2) AND (W-3) OF SECTION SIX HUNDRED
  SIX  AND SUBDIVISIONS FORTY-FIVE, FORTY-SIX, FORTY-SEVEN AND FORTY-EIGHT
  OF SECTION TWO HUNDRED TEN OF THIS CHAPTER THE COMMISSIONER SHALL:

    (1) MAINTAIN A LIST OF  PUBLIC  SCHOOL  DISTRICTS,  INDIVIDUAL  PUBLIC
  SCHOOLS,  INCLUDING  CHARTER  SCHOOLS, LOCAL EDUCATION FUNDS, AND EDUCA-
  TIONAL SCHOLARSHIP ORGANIZATIONS; AND
    (2) APPROVE TAX CREDITS ON A FIRST-COME, FIRST-SERVE BASIS  FROM  EACH
  TAXPAYER  WHO  SUBMITS  TO THE DEPARTMENT AN APPLICATION PREPARED BY THE
  COMMISSIONER WHEREIN THE TAXPAYER SHALL SPECIFY EACH TAX FOR  WHICH  THE
  TAXPAYER REQUESTS A CREDIT AND THE APPLICABLE TAXABLE YEAR FOR A CREDIT,
  SUBJECT TO THE LIMITS SET FORTH IN PARAGRAPH SIX OF THIS SUBDIVISION AND
  PROVIDED  THAT  NO  TAXPAYER  MAY  APPLY  FOR A CREDIT IN EXCESS OF FIVE
  PERCENT OF ONE HUNDRED TWENTY-FIVE MILLION  DOLLARS  FOR  TAX  YEAR  TWO
  THOUSAND  THIRTEEN  AND  ONE HUNDRED FIFTY MILLION DOLLARS FOR TAX YEARS
  BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN; AND
    (3) UPON NOTIFICATION BY THE CHIEF EXECUTIVE OFFICER OF ANY  EDUCATION
  ENTITY  SO  LISTED THAT A CONTRIBUTION HAS BEEN RECEIVED, SUCH NOTIFICA-
  TION BEING WITHIN ONE BUSINESS DAY OF SAID RECEIPT,  RECORD  THE  AMOUNT
  AND  DATE  OF THE CONTRIBUTION, THE NAME AND ADDRESS OF THE CONTRIBUTOR;
  AND
    (4) UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF  INSTRUCTIONAL
  MATERIALS  FOR  NON-PUBLIC  HOME-BASED  EDUCATIONAL PROGRAMS, RECORD THE
  AMOUNT AND DATE OF THE NOTIFICATION, THE NAME AND ADDRESS OF THE  CLAIM-
  ANT; AND
    (5)  UPON NOTIFICATION THAT A CREDIT FOR THE PURCHASE OF THE CLASSROOM
  INSTRUCTIONAL MATERIALS AND SUPPLIES FOR USE IN A PUBLIC SCHOOL, INCLUD-
  ING A CHARTER SCHOOL, OR  AN  ELIGIBLE  NON-PUBLIC  SCHOOL,  RECORD  THE
  AMOUNT  AND  DATE  OF  THE  NOTIFICATION AND THE NAME AND ADDRESS OF THE
  CLAIMANT; AND
    (6) MAKE NO MORE THAN TWO HUNDRED FIFTY  MILLION  DOLLARS  IN  CREDITS
  AVAILABLE  IN  ANY  SINGLE TAX YEAR, PROVIDED THAT FIFTY PERCENT OF SUCH
  CREDITS SHALL BE AFFORDED TO TAXPAYERS  WHO  MAKE  DONATIONS  TO  PUBLIC
  EDUCATION  ENTITIES  AND  LOCAL EDUCATION FUNDS, AND FOR THE PURCHASE BY
  SCHOOL PERSONNEL, OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES, AND
  THAT FIFTY PERCENT OF SUCH CREDITS SHALL BE AFFORDED TO EDUCATION SCHOL-
  ARSHIP  ORGANIZATIONS  AND  FOR  HOME-BASED   INSTRUCTIONAL   MATERIALS,
  PROVIDED  FURTHER,  THAT BEGINNING IN TAX YEAR TWO THOUSAND FOURTEEN AND
  ANNUALLY THEREAFTER, MAKE NO MORE THAN THREE HUNDRED MILLION DOLLARS  IN
  CREDITS AVAILABLE IN ANY SINGLE TAX YEAR, PROVIDED THAT FIFTY PERCENT OF
  SUCH CREDITS SHALL BE AFFORDED TO TAXPAYERS WHO MAKE DONATIONS TO PUBLIC
  EDUCATION  ENTITIES  AND  LOCAL EDUCATION FUNDS, AND FOR THE PURCHASE BY
  SCHOOL PERSONNEL OF CLASSROOM INSTRUCTIONAL MATERIALS AND SUPPLIES,  AND
  THAT  FIFTY  PERCENT  OF  SUCH  CREDITS SHALL BE AFFORDED TO EDUCATIONAL
  SCHOLARSHIP ORGANIZATIONS AND FOR  HOME-BASED  INSTRUCTIONAL  MATERIALS;
  AND

 S. 2732--C                          9

    (7)  ISSUE TO TAXPAYERS ALL AUTHORIZED CERTIFICATES OF RECEIPT FOR ALL
  ELIGIBLE CREDITS NO LATER THAN JANUARY THIRTY-FIRST FOR CREDITS  CLAIMED
  FOR THE PREVIOUS CALENDAR YEAR; AND
    (8)  DISALLOW THE PORTION OF THE CREDIT EQUAL TO THE AMOUNT SAVED FROM
  THE FEDERAL TAX LIABILITY OF THE TAXPAYER FROM THE  CHARITABLE  CONTRIB-
  UTION  TO A QUALIFIED ORGANIZATION UNDER SECTION FIVE HUNDRED ONE (C)(3)
  OF THE INTERNAL REVENUE CODE OF THE UNITED STATES.
    S 6.  The department of taxation and finance shall prepare  a  written
  report  before  January  31  of  each calendar year, which shall contain
  statistical  information  regarding  the  credits  allowed  pursuant  to
  subsections  (u),  (v),  (w),  (w-1), (w-2) and (w-3) of section 606 and
  subdivisions 45, 46, 47 and 48 of section 210 of the tax law as added by
  sections three and four of this act, for  the  previous  calendar  year.
  Copies  of such report shall be submitted to the governor, the temporary
  president of the senate, the speaker of the assembly, the chair  of  the
  senate  finance  committee  and the chair of the assembly ways and means
  committee. Such reports shall contain, but need not be limited  to,  the
  number  of  credits  by  type  and the amount of such credits allowed to
  taxpayers.
    S 7. This act shall not be construed to authorize the commissioner  of
  education  or  the  commissioner  of  taxation and finance to impose any
  regulation or requirement on the  educational  program,  instruction  or
  activities  of  an  eligible  non-public school that receives funding on
  behalf of an eligible pupil from an educational scholarship organization
  pursuant to this act, unless specifically authorized by this act.
    S 8. This act shall take effect immediately.