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

                                  5975

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 15, 2015
                               ___________

Introduced  by  Sen.  FELDER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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:

  Section  1.  Short  title. This act shall be known and may be cited as
the "education investment incentives act".
  S 2.  The tax law is amended by adding a new section  42  to  read  as
follows:
  S  42.  EDUCATION INVESTMENT TAX CREDIT.  (A) DEFINITIONS.  AS USED IN
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "AUTHORIZED CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT LISTED  ON
THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
  (2)  "CONTRIBUTION"  MEANS  A DONATION PAID BY CASH, CHECK, ELECTRONIC
FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD MADE BY  THE  TAXPAYER  DURING
THE TAX YEAR.
  (3) "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC SCHOOL
THAT  ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A PRE-KINDERGARTEN
PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF
THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS  OR  OTHER  ACTIV-
ITIES  OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE
NOT LIMITED TO, THE FOLLOWING FEATURES:  (A)  INSTRUCTION  OR  MATERIALS
PROMOTING  HEALTH, PHYSICAL EDUCATION, AND FAMILY AND CONSUMER SCIENCES;
LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH-
NOLOGY AND SCIENTIFIC ACHIEVEMENT; (B)  INSTRUCTION  OR  PROGRAMMING  TO
MEET  THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILI-
TIES, INCLUDING TUTORING  OR  COUNSELING;  OR  (C)  USE  OF  SPECIALIZED
INSTRUCTIONAL  MATERIALS,  INSTRUCTORS  OR INSTRUCTION NOT PROVIDED BY A
PUBLIC SCHOOL.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11678-01-5

              

S. 5975                             2

  (4) "EDUCATIONAL  SCHOLARSHIP  ORGANIZATION"  MEANS  A  NOT-FOR-PROFIT
ENTITY  WHICH  (A)  IS  EXEMPT  FROM  TAXATION  UNDER PARAGRAPH THREE OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE,
(B) COMMITS FOR THE EXPENDITURE OF AT LEAST NINETY PERCENT OF THE REVEN-
UE  FROM  QUALIFIED  CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND
ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS  FOR  SCHOLARSHIPS,  (C)
DEPOSITS  AND  HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM  THE  ORGAN-
IZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR
INCOME  ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO ELIGIBLE
PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS.
  (5) "ELIGIBLE PUPIL" MEANS A CHILD WHO  (A)  IS  A  RESIDENT  OF  THIS
STATE,  (B)  IS SCHOOL AGE 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, (C) ATTENDS OR IS ABOUT TO ATTEND A  QUALIFIED
SCHOOL, AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS
INCOME  OF  FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR
HOUSEHOLDS WITH THREE OR MORE  DEPENDENT  CHILDREN,  SUCH  INCOME  LEVEL
SHALL BE INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS
OF TWO, NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
  (6)  "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A) IS
EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF  SECTION
FIVE  HUNDRED  ONE  OF THE INTERNAL REVENUE CODE, (B) IS ESTABLISHED FOR
THE PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE  PUBLIC
SCHOOL,  OR  PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY PERCENT OF
THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR  YEAR  AND  ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL
OR  SCHOOLS  OR  PUBLIC  SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS
BEEN ESTABLISHED TO  SUPPORT,  AND  (D)  DEPOSITS  AND  HOLDS  QUALIFIED
CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS  UNTIL
SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
  (7)  "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM  OR  ELEMENTARY,  SECONDARY  SECTARIAN  OR  NONSECTARIAN  SCHOOL
LOCATED  IN  THIS  STATE,  OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING
INSTRUCTION AT ONE OR MORE LOCATIONS TO A  STUDENT  IN  ACCORDANCE  WITH
SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THE EDUCATION LAW.
  (8) "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC SCHOOL
DISTRICT,  PROVIDED  THAT  SUCH PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT
DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME  DERIVED  FROM
QUALIFIED  CONTRIBUTIONS  IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS  UNTIL  SUCH
QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED
TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS SECTION.
  (9)  "PUBLIC  SCHOOL" MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION  OR  CHARTER
SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE EDUCATION LAW.
  (10)  "QUALIFIED  CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE
BY A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGAN-
IZATION,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
THAT IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE  ISSUED  TO
THE  TAXPAYER  AND  FOR WHICH THE TAXPAYER HAS RECEIVED A CERTIFICATE OF
RECEIPT FROM SUCH ENTITY, FUND, OR ORGANIZATION.

S. 5975                             3

  (11) "QUALIFIED EDUCATOR" MEANS AN INDIVIDUAL  WHO  IS  A  TEACHER  OR
INSTRUCTOR  IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING
A SCHOOL YEAR.
  (12) "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.
  (13)  "SCHOLARSHIP"  MEANS AN EDUCATIONAL SCHOLARSHIP WHICH PROVIDES A
TUITION GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED  SCHOOL
IN  AN  AMOUNT  NOT  TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL
LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH  ELIGIBLE  PUPIL
OR  HIS  OR  HER  PARENT,  PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A
PUBLIC SCHOOL IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS  NOT  A
RESIDENT,  THE  AMOUNT  OF  THE  EDUCATIONAL SCHOLARSHIP AWARDED MAY NOT
EXCEED THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH  D
OF  SUBDIVISION  FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THE EDUCATION
LAW LESS ANY OTHER EDUCATIONAL SCHOLARSHIP  RECEIVED  BY  SUCH  ELIGIBLE
PUPIL  OR  HIS  OR  HER  PARENT,  PARENTS  OR GUARDIAN FOR SUCH ELIGIBLE
PUPIL'S TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT  OF  WHICH  SUCH
PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
  (14)  "SCHOOL  IMPROVEMENT ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY
WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH  THREE  OF  SUBSECTION
(C)  OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS  RECEIVED  DURING
THE  CALENDAR  YEAR  AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIB-
UTIONS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL  DISTRICTS  LOCATED  IN
THIS  STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY MAKING
CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR PUBLIC  SCHOOL  DISTRICTS
LOCATED  IN  THIS  STATE  OR  PROVIDING  EDUCATIONAL  PROGRAMS TO, OR IN
CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL  DISTRICTS
LOCATED  IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS
AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN  AN  ACCOUNT
THAT  IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL
SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE,  AND  (IV)
IS  APPROVED  TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
SUCH ENTITY MAY ALLOW THE TAXPAYER TO CHOOSE TO  DONATE  TO  A  PROGRAM,
PROJECT  OR  INITIATIVE  IDENTIFIED BY A QUALIFIED EDUCATOR FOR USE IN A
PUBLIC SCHOOL.
  (B) ALLOWANCE OF CREDIT. A  TAXPAYER  SUBJECT  TO  TAX  UNDER  ARTICLE
NINE-A  OR  TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST
SUCH TAX, PURSUANT TO PARAGRAPH TEN OF SUBDIVISION (A) OF THIS  SECTION,
WITH RESPECT TO QUALIFIED CONTRIBUTIONS MADE DURING THE TAXABLE YEAR.
  (C)  AMOUNT  OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE SEVENTY-FIVE
PERCENT OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT
HUNDRED SEVENTY-FIVE THOUSAND DOLLARS.  A TAXPAYER THAT IS A PARTNER  IN
A  PARTNERSHIP,  MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN
AN S CORPORATION SHALL BE ALLOWED TO CLAIM ITS PRO  RATA  SHARE  OF  THE
CREDIT  EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S CORPO-
RATION, PROVIDED THAT SUCH A TAXPAYER SHALL NOT CLAIM CREDIT  IN  EXCESS
OF THE LIMIT IMPOSED BY THE PRECEDING SENTENCE.
  (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE.  THE COMMIS-
SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE
AMOUNT  OF  AVAILABLE  CREDIT  FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO
THIS SECTION.  SUCH RUNNING TOTAL SHALL BE UPDATED  ON  A  DAILY  BASIS.
ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S
WEBSITE A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL  EDUCATION
FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO THIS SECTION.

S. 5975                             4

  (E) APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC  SCHOOLS  AND
PUBLIC  SCHOOL DISTRICTS. ALL PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS
SHALL BE APPROVED TO ISSUE CERTIFICATES  OF  RECEIPT  PROVIDED,  THAT  A
PUBLIC  SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED IF EITHER
(A)  THE  PUBLIC  SCHOOL  OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT AND
HOLD QUALIFIED CONTRIBUTIONS  AND  ANY  INCOME  DERIVED  FROM  QUALIFIED
CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL OR SCHOOL
DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
OR  INCOME  ARE  WITHDRAWN  FOR USE, OR (B) THE COMMISSIONER HAS REVOKED
SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT  PURSUANT
TO THIS SECTION.
  2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS  AND  LOCAL  EDUCATION  FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN APPLICATION AND  RECEIVING
APPROVAL PURSUANT TO THIS SECTION.
  (F)  APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.  EACH
SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,
AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE COMMISSIONER
FOR  APPROVAL  TO  ISSUE  CERTIFICATES OF RECEIPT IN THE FORM AND MANNER
PRESCRIBED BY THE COMMISSIONER; PROVIDED  THAT  SUCH  APPLICATION  SHALL
INCLUDE:  (1)  SUBMISSION  OF DOCUMENTATION THAT SUCH SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP  ORGANIZA-
TION  HAS  BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARAGRAPH THREE OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE;
(2) THE MOST RECENT ANNUAL FINANCIAL AUDIT, WHICH SHALL BE COMPLETED  BY
AN  INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANT  AND  A LIST OF NAMES AND
ADDRESSES OF ALL MEMBERS OF THE GOVERNING BOARD OF THE  SCHOOL  IMPROVE-
MENT  ORGANIZATION,  LOCAL  EDUCATION  FUND  OR  EDUCATIONAL SCHOLARSHIP
ORGANIZATION; AND (3)  AN  EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  SHALL
PROVIDE  CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE STUDENTS.
THE COMMISSIONER OR DEPARTMENT SHALL NOT REQUIRE ANY  OTHER  INFORMATION
FOR SUCH APPLICATION EXCEPT AS AUTHORIZED IN THIS SECTION.
  (G)  APPLICATION APPROVAL. THE COMMISSIONER SHALL REVIEW EACH APPLICA-
TION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS SECTION. APPROVAL
OR DENIAL OF AN APPLICATION SHALL BE MADE WITHIN THIRTY DAYS OF  RECEIPT
OF SUCH APPLICATION.
  (H)  REVOCATION  OF  APPROVAL  TO  ISSUE  CERTIFICATES OF RECEIPT. THE
COMMISSIONER MAY REVOKE THE APPROVAL OF A SCHOOL  IMPROVEMENT  ORGANIZA-
TION, EDUCATIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING  THAT  SUCH  ORGANIZATION,  FUND,  SCHOOL OR SCHOOL DISTRICT HAS
VIOLATED THIS SECTION.   THESE VIOLATIONS  SHALL  INCLUDE,  BUT  NOT  BE
LIMITED  TO,  ANY OF THE FOLLOWING: (1) FAILURE TO MEET THE REQUIREMENTS
OF THIS SECTION, (2) THE FAILURE TO MAINTAIN FULL AND  ADEQUATE  RECORDS
WITH  RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS, (3) THE FAILURE
TO SUPPLY SUCH RECORDS TO THE COMMISSIONER WHEN REQUESTED BY THE DEPART-
MENT, OR (4) THE FAILURE TO PROVIDE NOTICE  TO  THE  DEPARTMENT  OF  THE
ISSUANCE  OR  NONISSUANCE  OF  CERTIFICATES  OF RECEIPT PURSUANT TO THIS
SECTION; AND PROVIDED FURTHER THAT THE  COMMISSIONER  SHALL  NOT  REVOKE
APPROVAL  PURSUANT  TO THIS SECTION WHEN THE FAILURE TO COMPLY IS DUE TO
CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE  LAW.
WITHIN FIVE DAYS OF THE DETERMINATION REVOKING APPROVAL, THE COMMISSION-
ER  SHALL  PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION,  SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL  EDUCATION
FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT.

S. 5975                             5

  (I)  RECORDKEEPING.  EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL
SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC
SCHOOL DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE  OF  RECEIPT  SHALL
MAINTAIN  RECORDS  INCLUDING (A) NOTIFICATIONS RECEIVED FROM THE DEPART-
MENT,  (B) NOTIFICATIONS MADE TO THE DEPARTMENT, (C) COPIES OF QUALIFIED
CONTRIBUTIONS RECEIVED, (D) COPIES OF  THE  DEPOSIT  OF  SUCH  QUALIFIED
CONTRIBUTIONS,  (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL
FINANCIAL STATEMENTS, (G) IN THE CASE OF  SCHOOL  IMPROVEMENT  ORGANIZA-
TIONS,  EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND LOCAL EDUCATION FUNDS,
THE APPLICATION SUBMITTED PURSUANT TO THIS SECTION, AND  (H)  ANY  OTHER
INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMISSIONER.
  (J) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING  A  CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION, THE TAXPAYER SHALL APPLY TO  THE  DEPARTMENT  FOR  A  CONTRIBUTION
AUTHORIZATION  CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL
BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE  DEPARTMENT
MAY  ALLOW  TAXPAYERS  TO  MAKE  MULTIPLE APPLICATIONS ON THE SAME FORM,
PROVIDED THAT EACH CONTRIBUTION LISTED  ON  SUCH  APPLICATION  SHALL  BE
TREATED  AS  A  SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE
SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH  APPLICA-
TION.
  (K)  CONTRIBUTION  AUTHORIZATION  CERTIFICATES. 1. ISSUANCE OF CERTIF-
ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON  THE  FIRST  DAY  OF
JANUARY  AND  ENDS  ON THE THIRTY-FIRST DAY OF JANUARY, THE COMMISSIONER
SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION  AUTHORIZATION  CERTIFICATES.
COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE
CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR
WHICH  APPLICATIONS  HAVE  BEEN  RECEIVED  DURING  PHASE ONE EXCEEDS THE
AMOUNT OF THE CREDIT CAP IN SUBDIVISION (M) OF THIS SECTION, THEN  PHASE
ONE  OF  THE  CREDIT CAP APPLICATION SHALL BE ALLOCATED IN TWO STEPS. IN
STEP ONE, THE ALLOCATION SHALL EQUAL THE CONTRIBUTION CAP DIVIDED BY THE
TOTAL NUMBER OF APPLICATIONS FOR  CONTRIBUTIONS,  ROUNDED  DOWN  TO  THE
NEAREST  CENT.  EACH APPLICATION REQUESTING AN AMOUNT WHICH IS LESS THAN
OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR
APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED
TO AS "EXCESS DISTRIBUTIONS" FOR THE PURPOSES OF THIS SUBDIVISION, SHALL
BE AVAILABLE FOR ALLOCATION IN STEP TWO. EACH APPLICATION REQUESTING  AN
AMOUNT WHICH EXCEEDS THE ALLOCATION IN STEP ONE SHALL BE ALLOCATED CRED-
ITS  IN  STEP  TWO. IN STEP TWO, IF EXCESS DISTRIBUTIONS EQUAL ZERO THEN
EACH APPLICATION SHALL RECEIVE THE  ALLOCATION  AMOUNT  FROM  STEP  ONE,
OTHERWISE  EACH  APPLICATION SHALL RECEIVE AN AMOUNT EQUAL TO THE SUM OF
THE (I) THE ALLOCATION AMOUNT IN STEP ONE AND (II) A PRO RATA  SHARE  OF
AGGREGATE  EXCESS  DISTRIBUTIONS  BASED  ON  THE  DIFFERENCE BETWEEN THE
AMOUNT ON THEIR APPLICATION FOR CONTRIBUTION AND THE ALLOCATION IN  STEP
ONE.  FOR THE PURPOSES OF THIS SUBDIVISION, MULTIPLE APPLICATIONS BY THE
SAME TAXPAYER SHALL BE TREATED AS ONE APPLICATION. IF THE CREDIT CAP  IS
NOT  EXCEEDED,  PHASE  TWO  COMMENCES  ON FEBRUARY TWENTIETH AND ENDS ON
OCTOBER THIRTY-FIRST. DURING PHASE  TWO  THE  COMMISSIONER  SHALL  ISSUE
CONTRIBUTION  AUTHORIZATION  CERTIFICATES  ON  A  FIRST-COME FIRST SERVE
BASIS BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S  APPLI-
CATION  FOR  SUCH CERTIFICATE.   CONTRIBUTION AUTHORIZATION CERTIFICATES
FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN
THE TWENTIETH DAY OF FEBRUARY. CONTRIBUTION  AUTHORIZATION  CERTIFICATES

S. 5975                             6

FOR  APPLICATIONS  RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN FIVE
DAYS OF RECEIPT OF SUCH APPLICATIONS.
  2.  CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION
AUTHORIZATION CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE  WAS
ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
CERTIFICATE  MUST BE MADE, WHICH SHALL BE NO LATER THAN NOVEMBER THIRTI-
ETH OF THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIFICATE WAS
ISSUED, (III) THE AMOUNT OF AUTHORIZED CONTRIBUTION,  (IV)  THE  CERTIF-
ICATE  NUMBER,  (V)  THE  TAXPAYER'S NAME AND ADDRESS, (VI) THE NAME AND
ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,
LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP  ORGANIZATION  TO  WHICH
THE  TAXPAYER  MAY MAKE THE AUTHORIZED CONTRIBUTION, AND (VII) ANY OTHER
INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
  3. NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE.  UPON  THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIF-
ICATE TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC  EDUCATION
ENTITY,  SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION OF THE  ISSUANCE  OF  SUCH  CONTRIBUTION
AUTHORIZATION  CERTIFICATE.  SUCH  NOTIFICATION  SHALL  INCLUDE  (I) THE
TAXPAYER'S NAME AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS  ISSUED,
(III)  THE  DATE  BY  WHICH  THE  AUTHORIZED  CONTRIBUTION LISTED IN THE
NOTIFICATION MUST BE MADE BY  THE  TAXPAYER,  (IV)  THE  AMOUNT  OF  THE
AUTHORIZED  CONTRIBUTION,  (V)  THE  CONTRIBUTION  AUTHORIZATION CERTIF-
ICATE'S CERTIFICATE NUMBER, AND (VI)  ANY  OTHER  INFORMATION  THAT  THE
COMMISSIONER DEEMS NECESSARY.
  (L) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF  RECEIPT  FOR  ANY
CONTRIBUTION  MADE  BY  A  TAXPAYER UNLESS SUCH PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  HAS  BEEN  APPROVED  TO ISSUE CERTIFICATES OF
RECEIPT PURSUANT TO THIS SECTION.   NO PUBLIC EDUCATION  ENTITY,  SCHOOL
IMPROVEMENT  ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLAR-
SHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF RECEIPT  FOR  A  CONTRIB-
UTION  MADE  BY  A  TAXPAYER UNLESS SUCH PUBLIC EDUCATION ENTITY, SCHOOL
IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL  SCHOLAR-
SHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE DEPARTMENT THAT THE
DEPARTMENT  ISSUED  A  CONTRIBUTION  AUTHORIZATION  CERTIFICATE  TO  THE
TAXPAYER FOR SUCH CONTRIBUTION.
  2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
TO  THE  PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL
EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER  NO  LATER
THAN  THE  DATE  BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE
MADE, SUCH PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZATION,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL,
WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION,  ISSUE  TO
THE  TAXPAYER  A  CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE
TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE  AMOUNT  LISTED  ON
THE  TAXPAYER'S  CONTRIBUTION  AUTHORIZATION  CERTIFICATE,  THE TAXPAYER
SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
  3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
STATE  (I)  THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION,  (II)  THE TAXPAYER'S NAME AND ADDRESS, (III)
THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND

S. 5975                             7

THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
TOTAL AMOUNT OF CONTRIBUTIONS, (VI) CERTIFICATE OF  RECEIPT  NUMBER  AND
(VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
  4. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
RECEIPT.  UPON  THE  ISSUANCE  OF  A CERTIFICATE OF RECEIPT, THE ISSUING
PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,  LOCAL  EDUCA-
TION  FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT  WITH
NOTIFICATION  OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER
PRESCRIBED BY THE DEPARTMENT.
  5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL  IMPROVEMENT  ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
THIS  SECTION  REGARDING  THE  ISSUANCE  OF A CONTRIBUTION AUTHORIZATION
CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS  OF  THE  EXPIRATION
DATE  FOR  SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION TO THE
DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE
FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
  6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
ERY OF THE FAILURE OF ANY PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT
PROGRAM,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
TO COMPLY WITH THE NOTIFICATION REQUIREMENTS  PRESCRIBED  BY  PARAGRAPHS
FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
OF  COMPLIANCE  FAILURE  TO SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION.
SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS  FROM
THE  DATE  OF  SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARA-
GRAPHS FOUR AND FIVE OF THIS SUBDIVISION. SUCH PERIOD  MAY  BE  EXTENDED
FOR  AN  ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM,
FUND, OR ORGANIZATION.
  (M) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
TWO  THOUSAND  SIXTEEN  AND  EACH  CALENDAR YEAR THEREAFTER SHALL BE ONE
HUNDRED FIFTY MILLION DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED  TO  BE
ADDED TO THE CAP PURSUANT TO SUBDIVISION (N) OF THIS SECTION.  THE MAXI-
MUM  PERMITTED  CREDITS  UNDER  THIS SECTION FOR QUALIFIED CONTRIBUTIONS
SHALL BE ALLOCATED FIFTY PERCENT TO PUBLIC  EDUCATION  ENTITIES,  SCHOOL
IMPROVEMENT  ORGANIZATIONS,  AND LOCAL EDUCATION FUNDS AND FIFTY PERCENT
TO EDUCATIONAL SCHOLARSHIP ORGANIZATIONS.
  (N) ADDITIONS TO CREDIT CAP. UNISSUED CERTIFICATES OF  RECEIPT.    ANY
AMOUNTS  FOR  WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE
OF A CERTIFICATE OF RECEIPT SHALL BE ADDED  TO  THE  CAP  PRESCRIBED  IN
SUBDIVISION (M) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
  (O)  REGULATIONS.  THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE  IMPLEMEN-
TATION  OF  THIS  SECTION.    THE  COMMISSIONER MAY MAKE ANY APPLICATION
REQUIRED TO BE FILED PURSUANT TO SUBDIVISION (E) OF THIS SECTION  AVAIL-
ABLE  TO  APPLICANTS  WITHIN  SIXTY  DAYS  OF THE EFFECTIVE DATE OF THIS
SECTION.
  ON OR BEFORE THE LAST DAY OF JUNE FOR  EACH  CALENDAR  YEAR,  FOR  THE
IMMEDIATELY  PRECEDING  YEAR,  THE  COMMISSIONER  SHALL SUBMIT A WRITTEN
REPORT TO THE GOVERNOR, THE  TEMPORARY  PRESIDENT  OF  THE  SENATE,  THE
SPEAKER  OF  THE  ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE
AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING  THE

S. 5975                             8

EDUCATION  INVESTMENT  TAX CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION
FOR ARTICLES NINE-A AND TWENTY-TWO,  RESPECTIVELY,  REGARDING:  (I)  THE
NUMBER  OF APPLICATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE
OF  THE CONTRIBUTION AUTHORIZATION CERTIFICATES ISSUED FOR CONTRIBUTIONS
TO PUBLIC EDUCATION ENTITIES, SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
EDUCATION  FUNDS, AND SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE
GEOGRAPHICAL DISTRIBUTION BY COUNTY OF (A) THE APPLICATIONS FOR CONTRIB-
UTION AUTHORIZATION CERTIFICATES, DISTRIBUTION  BY  COUNTY  OF  (B)  THE
PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS LISTED ON THE
ISSUED CONTRIBUTION AUTHORIZATION CERTIFICATES;  AND  (IV)  INFORMATION,
INCLUDING GEOGRAPHICAL DISTRIBUTION BY COUNTY, OF THE NUMBER OF ELIGIBLE
PUPILS  THAT  RECEIVED  SCHOLARSHIPS,  THE  NUMBER  OF QUALIFIED SCHOOLS
ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED  SUCH  SCHOLARSHIPS,  AND  THE
AVERAGE VALUE OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE PUPILS.
  (P)  CROSS  REFERENCES.  FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 51;
  2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).
  S 3. Paragraph (b) of subdivision 9 of section 208 of the tax  law  is
amended by adding a new subparagraph 22 to read as follows:
  (22)  THE  AMOUNT  OF  ANY  DEDUCTION  ALLOWED PURSUANT TO SECTION ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE  CODE  FOR  WHICH  A  CREDIT  IS
CLAIMED  PURSUANT  TO SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED TEN-B
OF THIS ARTICLE.
  S 4. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 51 to read as follows:
  51.  EDUCATION  INVESTMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO  LESS
THAN  THE  HIGHER  OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) OR (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF
THE AMOUNT OF  CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  FOR  QUALIFIED
CONTRIBUTIONS  FOR  ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
follows:
(XLI) EDUCATION INVESTMENT           AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (CCC)    FIFTY-ONE OF SECTION TWO HUNDRED
                                     TEN-B
  S 6. Section 606  of  the  tax  law  is  amended  by  adding  two  new
subsections (w) and (w-1) to read as follows:
  (W)  HOME-BASED  INSTRUCTIONAL MATERIALS CREDIT. (1) FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  SIXTEEN,  A  TAXPAYER
SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
THE PURCHASE  OF  INSTRUCTIONAL  MATERIALS  APPROVED  BY  THE  EDUCATION
DEPARTMENT  OR  BOARD OF REGENTS FOR USE IN NON-PUBLIC HOME-BASED EDUCA-
TIONAL PROGRAMS; PROVIDED, THAT THE AMOUNT OF CREDIT  CLAIMED  DOES  NOT
EXCEED  THE  LESSER OF TWO HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF THE
COST OF SUCH PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.

S. 5975                             9

  (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 AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  (4) THE MAXIMUM AMOUNT OF CREDIT THAT SHALL BE ALLOWED ANNUALLY  UNDER
THIS SUBSECTION SHALL BE FIVE MILLION DOLLARS. IN ORDER TO CLAIM A CRED-
IT  UNDER  THIS  SUBSECTION,  A  TAXPAYER  SHALL  BE  REQUIRED TO SUBMIT
DOCUMENTATION DEMONSTRATING THAT THE TAXPAYER  PURCHASED  MATERIALS  AND
SUPPLIES.  THE  DEPARTMENT  SHALL  REVIEW  THE APPLICATION AND PROVIDE A
TAXPAYER WITH A CERTIFICATE THAT SPECIFIES HOW MUCH CREDIT THE  TAXPAYER
IS ENTITLED TO CLAIM. IF REQUIRED BY THE COMMISSIONER, THE TAXPAYER MUST
SUBMIT  THAT  CERTIFICATE  WITH  HIS OR HER TAX RETURN. THE COMMISSIONER
SHALL ALLOCATE THE CREDITS  ON  A  FIRST  COME  FIRST  SERVE  BASIS  AND
PRESCRIBE  THE  NECESSARY  PROCEDURES FOR REVIEWING THE APPLICATIONS AND
PRODUCING THE CERTIFICATES.
  (W-1) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT.   (1)  FOR  TAXABLE
YEARS  BEGINNING  ON  AND  AFTER  JANUARY FIRST, TWO THOUSAND SIXTEEN, A
TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO THE  LESSER  OF  THE  AMOUNT
PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
AND  SUPPLIES,  OR  TWO HUNDRED DOLLARS; PROVIDED THAT THE TAXPAYER IS A
QUALIFIED EDUCATOR, AS DEFINED IN SECTION  FORTY-TWO  OF  THIS  CHAPTER.
FOR PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND SUPPLIES" MEANS
INSTRUCTIONAL  MATERIALS  OR  SUPPLIES THAT ARE USED IN THE CLASSROOM IN
ANY QUALIFIED SCHOOL.
  (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 AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  (4) THE MAXIMUM AMOUNT OF CREDIT THAT SHALL BE ALLOWED ANNUALLY  UNDER
THIS  SUBSECTION  SHALL  BE  TWENTY MILLION DOLLARS. IN ORDER TO CLAIM A
CREDIT UNDER THIS SUBSECTION, A TAXPAYER SHALL  BE  REQUIRED  TO  SUBMIT
DOCUMENTATION  DEMONSTRATING  THAT  THE TAXPAYER PURCHASED MATERIALS AND
SUPPLIES. THE DEPARTMENT SHALL REVIEW  THE  APPLICATION  AND  PROVIDE  A
TAXPAYER  WITH A CERTIFICATE THAT SPECIFIES HOW MUCH CREDIT THE TAXPAYER
IS ENTITLED TO CLAIM. IF REQUIRED BY THE COMMISSIONER, THE TAXPAYER MUST
SUBMIT THAT CERTIFICATE WITH HIS OR HER  TAX  RETURN.  THE  COMMISSIONER
SHALL  ALLOCATE  THE  CREDITS  ON  A  FIRST  COME  FIRST SERVE BASIS AND
PRESCRIBE THE NECESSARY PROCEDURES FOR REVIEWING  THE  APPLICATIONS  AND
PRODUCING THE CERTIFICATES.
  S  7. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) EDUCATION INVESTMENT TAX CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY QUALIFIED CONTRIBUTIONS  FOR  ANY  TAXABLE  YEAR
EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER

S. 5975                            10

TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S  8.  Subdivision  (c)  of  section  615 of the tax law is amended by
adding a new paragraph 9 to read as follows:
  (9) THE AMOUNT OF ANY FEDERAL DEDUCTION  FOR  CONTRIBUTIONS  MADE  FOR
WHICH  A  TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF SECTION SIX
HUNDRED SIX OF THIS ARTICLE.
  S 9. Section 606 of the tax law is amended by adding a new  subsection
(eee) to read as follows:
  (EEE) FAMILY CHOICE EDUCATION CREDIT. (1) GENERAL. A RESIDENT TAXPAYER
SHALL  BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH FOUR
OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR  QUALI-
FIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION:
  (A)  THE  TERM  "ELIGIBLE  STUDENT"  SHALL  MEAN  ANY DEPENDENT OF THE
TAXPAYER WITH RESPECT TO WHOM THE TAXPAYER IS ALLOWED AN EXEMPTION UNDER
SECTION SIX HUNDRED SIXTEEN OF THIS ARTICLE FOR THE TAXABLE YEAR.
  (B)  THE  TERM  "QUALIFIED  PRIMARY  OR  SECONDARY  EDUCATION  TUITION
EXPENSES"  SHALL MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTEND-
ANCE OF AN ELIGIBLE STUDENT AT A QUALIFIED SCHOOL, AS DEFINED IN SECTION
FORTY-TWO OF THIS CHAPTER.  PROVIDED,  HOWEVER,  TUITION  PAYMENTS  MADE
PURSUANT  TO  THE  RECEIPT OF ANY SCHOLARSHIPS OR FINANCIAL AID SHALL BE
EXCLUDED FROM THE DEFINITION OF "QUALIFIED PRIMARY OR  SECONDARY  EDUCA-
TION TUITION EXPENSES".
  (3) ELIGIBILITY. TO BE ELIGIBLE FOR THIS CREDIT, THE NEW YORK ADJUSTED
GROSS  INCOME OF THE TAXPAYER FOR THE TAXABLE YEAR MAY NOT EXCEED EIGHTY
THOUSAND DOLLARS OR IN THE CASE OF A JOINT RETURN, MAY  NOT  EXCEED  ONE
HUNDRED TEN THOUSAND DOLLARS.
  (4)  JOINT RETURN FILERS. 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.
  (5) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL  TO  THE
LESSER OF FIVE HUNDRED DOLLARS OR THE ACTUAL AMOUNT OF QUALIFIED PRIMARY
OR  SECONDARY  EDUCATION  TUITION  EXPENSES PAID BY THE TAXPAYER FOR ALL
ELIGIBLE STUDENTS DURING THE TAXABLE YEAR.
  (6) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHT-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
  S 10. The education law is amended by adding a new section  1503-a  to
read as follows:
  S  1503-A.  POWER  TO  ACCEPT AND SOLICIT GIFTS AND DONATIONS.  1. ALL
SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
OF A GENERAL LAW ARE HEREBY AUTHORIZED AND EMPOWERED  TO  ACCEPT  GIFTS,
DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL  OR  SPECIAL  LAW  TO  THE  CONTRARY, THE RECEIPT OF SUCH GIFTS,
DONATIONS, CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED  THERE-
FROM,  SHALL  BE  DISREGARDED  FOR  THE  PURPOSES OF ALL APPORTIONMENTS,
COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
  S 11. Severability. If any provision of this section or  the  applica-
tion  thereof to any person or circumstances is held invalid, such inva-
lidity shall not affect other provisions or applications of the  section

S. 5975                            11

which  can be given effect without the invalid provision or application,
and to this end the provisions of this section are declared to be sever-
able.
  S  12. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2015.