S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5862--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 16, 2017
                                ___________
 
 Introduced  by  M.  of  A.  CUSICK,  ARROYO,  BENEDETTO, COLTON, CRESPO,
   CYMBROWITZ, DenDEKKER, FITZPATRICK, GIGLIO, GJONAJ,  GOODELL,  HEVESI,
   HIKIND,  KOLB, LALOR, McDONALD, McLAUGHLIN, M. G. MILLER, MOYA, ORTIZ,
   PALMESANO, PERRY, PRETLOW,  RA,  SIMANOWITZ,  SIMOTAS,  STEC,  WEPRIN,
   MONTESANO  -- Multi-Sponsored by -- M. of A. BLANKENBUSH, COOK, LOPEZ,
   MAGEE, SCHIMMINGER -- read once and referred to the Committee on  Ways
   and  Means -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the tax law and the education law, in relation to enact-
   ing the "education affordability 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 affordability act".
   § 2. Legislative findings and intent. The legislature hereby finds and
 declares that:
   a. The education of the children of this state is one of  the  founda-
 tions  of  a  strong  society  that  requires an academically robust and
 financially sound school system, both public and non-public;
   b. 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 encouraged;
   c.  Permitting  public education entities such as school districts and
 individual public schools to accept and receive voluntary cash  contrib-
 utions will be beneficial to students, taxpayers and educators;
   d.  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.
                                                            LBD08079-03-7
              

 A. 5862--A                          2
 
   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 credits provided in this act
 are the students who attend public schools, students who  further  their
 education using tuition scholarships from educational scholarship organ-
 izations,  and teachers who purchase with personal funds to supply their
 students and classrooms, and who seek charitable donations for classroom
 projects and initiatives;
   g. Permitting educators to claim a credit for the purchase  of  class-
 room instructional materials and supplies will insure a wider availabil-
 ity of such materials and supplies for all students.
   §  3.    The  tax law is amended by adding a new section 43 to read as
 follows:
   § 43. EDUCATION AFFORDABILITY CREDIT.  (A) FOR THE  PURPOSES  OF  THIS
 SECTION,  THE  TERMS  "AUTHORIZED CONTRIBUTION", "CONTRIBUTION", "EDUCA-
 TIONAL  PROGRAM",  "EDUCATIONAL  SCHOLARSHIP  ORGANIZATION",   "ELIGIBLE
 PUPIL",  "LOCAL  EDUCATION FUND", "NON-PUBLIC SCHOOL", "PUBLIC EDUCATION
 ENTITY", "PUBLIC SCHOOL", "QUALIFIED  CONTRIBUTION",  "QUALIFIED  EDUCA-
 TOR",  "QUALIFIED  SCHOOL", "SCHOLARSHIP" AND "SCHOOL IMPROVEMENT ORGAN-
 IZATION" SHALL HAVE THE SAME MEANING  AS  THOSE  TERMS  ARE  DEFINED  IN
 SECTION TWELVE HUNDRED TEN OF THE EDUCATION LAW.
   (B)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE
 NINE-A OR TWENTY-TWO OF THIS  CHAPTER  SHALL  BE  ALLOWED  AN  EDUCATION
 AFFORDABILITY CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFER-
 ENCED  IN  SUBDIVISION  (L)  OF  THIS SECTION, WITH RESPECT TO QUALIFIED
 CONTRIBUTIONS MADE DURING THE TAXABLE YEAR.
   (C) AMOUNT OF CREDIT.   FOR TAXPAYERS  WHOSE  FEDERAL  ADJUSTED  GROSS
 INCOME  IS LESS THAN THREE HUNDRED THOUSAND DOLLARS IN THE YEAR IN WHICH
 THEY MAKE A QUALIFIED CONTRIBUTION, THE AMOUNT OF THE  CREDIT  SHALL  BE
 NINETY  PERCENT  OF  THE  TAXPAYER'S  TOTAL QUALIFIED CONTRIBUTIONS. FOR
 TAXPAYERS WHOSE HOUSEHOLD INCOME IS EQUAL TO OR  EXCEEDS  THREE  HUNDRED
 THOUSAND  DOLLARS  IN  THE  YEAR IN WHICH THEY MAKE A QUALIFIED CONTRIB-
 UTION, THE AMOUNT OF THE CREDIT SHALL BE  SEVENTY-FIVE  PERCENT  OF  THE
 TAXPAYER'S  TOTAL  QUALIFIED  CONTRIBUTIONS. IN NO CASE SHALL A TAXPAYER
 OBTAIN A CREDIT MORE THAN EIGHT HUNDRED SEVENTY-FIVE THOUSAND DOLLARS IN
 A TAX YEAR FOR QUALIFIED CONTRIBUTIONS.  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 THIS SUBDIVISION.
   (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 ARTICLE TWENTY-FIVE OF THE EDUCATION
 LAW.  THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
 LIST  OF  PUBLIC  EDUCATION  ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS,
 LOCAL EDUCATION FUNDS AND EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  WHOSE
 APPROVAL  TO  ISSUE  CERTIFICATES OF RECEIPT HAS BEEN REVOKED ALONG WITH
 THE DATE OF REVOCATION.
   (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
 MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY,  SCHOOL  IMPROVEMENT

 A. 5862--A                          3
 
 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.
   (F) 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 (H) OF THIS SECTION, THE AUTHOR-
 IZED  CONTRIBUTION  AMOUNT  LISTED  ON  EACH  CONTRIBUTION AUTHORIZATION
 CERTIFICATE SHALL EQUAL THE PRO-RATA SHARE OF THE CREDIT CAP.    IF  THE
 CREDIT  CAP  IS  NOT EXCEEDED, PHASE TWO COMMENCES ON FEBRUARY FIRST AND
 ENDS ON DECEMBER THIRTY-FIRST. THE COMMISSIONER SHALL ISSUE CONTRIBUTION
 AUTHORIZATION CERTIFICATES ON A FIRST-COME, FIRST SERVE BASIS BASED UPON
 THE DATE THE DEPARTMENT RECEIVED THE  TAXPAYER'S  APPLICATION  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 FOR APPLICA-
 TIONS RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN  TWENTY  DAYS  OF
 RECEIPT  OF  SUCH APPLICATIONS.   PROVIDED HOWEVER, THAT NO CONTRIBUTION
 AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED  DURING  PHASE  TWO
 SHALL BE ISSUED UNTIL ALL OF THE CONTRIBUTION AUTHORIZATION CERTIFICATES
 FOR APPLICATIONS RECEIVED DURING PHASE ONE HAVE BEEN ISSUED.
   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 CONTRIBUTIONS LISTED IN
 THE CERTIFICATE MUST BE MADE, WHICH SHALL  BE  NO  LATER  THAN  DECEMBER
 THIRTY-FIRST  OF  THE  YEAR  FOR  WHICH  THE  CONTRIBUTION AUTHORIZATION
 CERTIFICATE WAS ISSUED, (III) THE TAXPAYER'S NAME AND ADDRESS, (IV)  THE
 AMOUNT  OF  AUTHORIZED CONTRIBUTIONS, (V) THE CONTRIBUTION AUTHORIZATION
 CERTIFICATE'S CERTIFICATE NUMBER, (VI)  THE  NAME  AND  ADDRESS  OF  THE
 PUBLIC  EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
 TION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR 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 ISSUANCE OF A CONTRIBUTION AUTHORIZATION  CERTIFICATE,
 THE  COMMISSIONER SHALL NOTIFY THE EDUCATIONAL SCHOLARSHIP ORGANIZATION,
 PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION OR LOCAL EDUCA-
 TION FUND OF THE ISSUANCE OF THE CONTRIBUTION AUTHORIZATION  CERTIFICATE
 TO  A TAXPAYER.  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)  CONTRIBUTION AUTHORIZATION CERTIFICATE, AND (VI) ANY OTHER INFORMA-
 TION THAT THE COMMISSIONER DEEMS NECESSARY.

 A. 5862--A                          4

   (G) 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 ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC
 EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
 OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL  ISSUE  A  CERTIFICATE  OF
 RECEIPT  FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA-
 TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR
 EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
 DEPARTMENT THAT THE DEPARTMENT ISSUED A CREDIT 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
 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 EDUCA-
 TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN  THIRTY
 DAYS  OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO THE TAXPAYER A
 WRITTEN CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE  TAXPAYER
 CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON THE TAXPAY-
 ER'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
 THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
 TOTAL AMOUNT OF CONTRIBUTIONS, AND (VI) 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 (D) 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  DISCOVERY
 OF THE FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGAN-
 IZATION,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
 TO COMPLY WITH THE NOTIFICATION REQUIREMENTS  PRESCRIBED  BY  PARAGRAPHS

 A. 5862--A                          5
 
 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 PARAGRAPHS
 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. UPON THE EXPIRATION OF THE PERIOD FOR COMPLIANCE SET FORTH
 IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL NOTI-
 FY THE BOARD OF REGENTS AND THE  COMMISSIONER  OF  EDUCATION  THAT  SUCH
 ENTITY,  PROGRAM  FUND  OR ORGANIZATION FAILED TO MAKE THE NOTIFICATIONS
 PRESCRIBED BY PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
   (H) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
 AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
 TWO  THOUSAND  EIGHTEEN  SHALL BE ONE HUNDRED FIFTY MILLION DOLLARS.  IN
 CALENDAR YEAR TWO THOUSAND NINETEEN, THE MAXIMUM PERMITTED CREDITS UNDER
 THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE
 MILLION DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE  ADDED  TO  THE
 CAP  PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  FOR CALENDAR YEAR TWO
 THOUSAND TWENTY AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM PERMITTED
 CREDITS UNDER THIS SECTION AVAILABLE TO ALL  TAXPAYERS  SHALL  BE  THREE
 HUNDRED  MILLION DOLLARS, PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED
 TO THE CAP PURSUANT TO SUBDIVISION (I) OF THIS  SECTION.    THE  MAXIMUM
 PERMITTED  CREDITS  UNDER THIS SECTION FOR QUALIFIED CONTRIBUTIONS SHALL
 BE ALLOCATED FIFTY PERCENT TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVE-
 MENT ORGANIZATIONS, AND LOCAL  EDUCATION  FUNDS  AND  FIFTY  PERCENT  TO
 EDUCATIONAL SCHOLARSHIP ORGANIZATIONS.
   (I) ADDITIONS TO THE 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 (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
   (J)  REGULATIONS.  THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
 AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE  IMPLEMEN-
 TATION OF THIS SECTION.
   (K) REPORTS. 1. REPORTS TO THE COMMISSIONER. ON OR BEFORE THE LAST DAY
 OF FEBRUARY FOR EACH CALENDAR YEAR, EACH PUBLIC EDUCATION ENTITY, SCHOOL
 IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, AND EDUCATIONAL SCHOLAR-
 SHIP  ORGANIZATION THAT ISSUED ONE OR MORE CERTIFICATES OF RECEIPT SHALL
 REPORT TO THE COMMISSIONER THE NUMBER OF SUCH  CERTIFICATES  ISSUED  AND
 THE  AGGREGATE  AMOUNT  OF  QUALIFIED CONTRIBUTIONS MADE TO SUCH ENTITY,
 FUND, OR ORGANIZATION DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR.
   2. JOINT ANNUAL REPORT. ON OR BEFORE THE LAST DAY  OF  JUNE  FOR  EACH
 CALENDAR  YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND
 THE COMMISSIONER OF EDUCATION SHALL JOINTLY 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 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 CONTRIBUTION AUTHORIZATION CERTIF-
 ICATES, DISTRIBUTION BY COUNTY OF (B)  THE  PUBLIC  EDUCATION  ENTITIES,
 SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL
 SCHOLARSHIP  ORGANIZATIONS  LISTED  ON  THE ISSUED CONTRIBUTION AUTHORI-

 A. 5862--A                          6
 
 ZATION  CERTIFICATES;  AND  (IV)  INFORMATION,  INCLUDING   GEOGRAPHICAL
 DISTRIBUTION  BY  COUNTY, OF THE NUMBER OF ELIGIBLE PUPILS THAT RECEIVED
 SCHOLARSHIPS, THE NUMBER OF ELIGIBLE PUPILS THAT RESIDE IN  A  HOUSEHOLD
 THAT HAS AN INCOME NOT TO EXCEED ONE HUNDRED FIFTY PERCENT OF THE INCOME
 QUALIFICATION  REQUIRED  FOR  THE REDUCED PRICE SCHOOL LUNCHES UNDER THE
 NATIONAL SCHOOL LUNCH ACT, THE NUMBER OF QUALIFIED SCHOOLS  ATTENDED  BY
 ELIGIBLE  PUPILS  THAT RECEIVED SUCH SCHOLARSHIPS, AND THE AVERAGE VALUE
 OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE PUPILS. THE  COMMISSIONER  AND
 DESIGNATED  EMPLOYEES  OF  THE  STATE EDUCATION DEPARTMENT, THE BOARD OF
 REGENTS AND ALL MEMBERS OF THE BOARD OF REGENTS, INCLUDING  THE  COMMIS-
 SIONER  OF  EDUCATION  AND  DESIGNATED  EMPLOYEES OF THE STATE EDUCATION
 DEPARTMENT, SHALL BE ALLOWED AND ARE  DIRECTED  TO  SHARE  AND  EXCHANGE
 INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA-
 TION  FUNDS  AND  EDUCATIONAL SCHOLARSHIP ORGANIZATIONS THAT APPLIED FOR
 APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED  CONTRIBUTIONS;  AND  THE
 PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
 EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO
 ISSUE CERTIFICATES OF RECEIPT, INCLUDING  INFORMATION  CONTAINED  IN  OR
 DERIVED FROM APPLICATION FORMS AND REPORTS SUBMITTED TO THE STATE EDUCA-
 TION DEPARTMENT OR BOARD OF REGENTS.
   (L)  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 49;
   2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).
   § 4. 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 CREDIT IS CLAIMED
 PURSUANT TO SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B OF  THIS
 ARTICLE.
   §  5. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 49 to read as follows:
   49. EDUCATION AFFORDABILITY CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAY-
 ER SHALL BE ALLOWED A CREDIT, TO BE  COMPUTED  AS  PROVIDED  IN  SECTION
 FORTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (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 PARAGRAPH (D) OF SUBDIVI-
 SION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.   HOWEVER,  IF  THE
 AMOUNT  OF  CREDIT ALLOWED UNDER THIS SUBDIVISION FOR QUALIFIED CONTRIB-
 UTIONS FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,  ANY  AMOUNT
 OF  CREDIT  THUS 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.
   § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended by adding a new clause (xliii) to read as
 follows:
 (XLIII) EDUCATION                    AMOUNT OF CREDIT UNDER SUBDIVISION
 AFFORDABILITY CREDIT UNDER           FORTY-NINE OF SECTION TWO HUNDRED
 SUBSECTION (CCC)                     TEN-B
   § 7. Section 606 of the tax law is amended by adding a new  subsection
 (w) to read as follows:
   (W) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. (1) FOR TAXABLE YEARS
 BEGINNING  ON AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, A TAXPAYER
 SHALL BE ALLOWED A CREDIT IN THE AMOUNT PAID BY THE TAXPAYER DURING  THE
 TAXABLE  YEAR  FOR  INSTRUCTIONAL MATERIALS AND SUPPLIES WITH RESPECT TO

 A. 5862--A                          7
 
 CLASSROOM BASED INSTRUCTION  IN  A  QUALIFIED  SCHOOL,  OR  TWO  HUNDRED
 DOLLARS,  WHICHEVER  IS LESS; PROVIDED THAT THE TAXPAYER IS A TEACHER OR
 INSTRUCTOR IN A QUALIFIED SCHOOL, AS DEFINED IN SECTION  FORTY-THREE  OF
 THIS  CHAPTER, FOR AT LEAST NINE HUNDRED HOURS DURING A SCHOOL YEAR. FOR
 PURPOSES OF THIS SUBSECTION, THE TERM  "MATERIALS  AND  SUPPLIES"  MEANS
 AMOUNTS PAID FOR INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE DESIGNATED
 FOR CLASSROOM USE 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.
   § 8.  Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC)  EDUCATION  AFFORDABILITY  CREDIT.  (1)  ALLOWANCE  OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
 FORTY-THREE 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
 TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
 FOR SUCH YEAR OR YEARS.
   § 9. Subsection (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 (KK) OF SECTION SIX
 HUNDRED SIX OF THIS ARTICLE.
   § 10. Section 606 of the tax law is amended by adding a new subsection
 (hhh) to read as follows:
   (HHH) 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-THREE  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,  TAXABLE  INCOME,  AS
 FOUND  ON  LINE  43  OF  THE  INTERNAL  REVENUE SERVICE FORM 1040 OF THE
 TAXPAYER MAY NOT EXCEED ONE HUNDRED TEN THOUSAND DOLLARS FOR  HOUSEHOLDS
 WITH  UP  TO  ONE DEPENDENT, PROVIDED, HOWEVER, THAT SUCH INCOME AMOUNTS
 SHALL INCREASE BY TWENTY-TWO THOUSAND SEVEN HUNDRED SEVENTY DOLLARS  FOR
 EACH ADDITIONAL DEPENDENT.
   (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

 A. 5862--A                          8
 
 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 TWELVE 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, PROVIDED THAT SUCH CREDIT
 SHALL  INCREASE  AT  THE SAME PERCENTAGE INCREASE IN STATE AID TO PUBLIC
 SCHOOLS AS REPORTED IN THE NEW YORK STATE ENACTED BUDGET FINANCIAL PLAN.
   (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  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
 SHALL BE PAID THEREON.
   § 11. The education law is amended by adding a new article 25 to  read
 as follows:
                                ARTICLE 25
                  EDUCATION AFFORDABILITY CREDIT PROGRAM
 SECTION 1209. SHORT TITLE.
         1210. DEFINITIONS.
         1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
         1212. APPLICATIONS   FOR   APPROVAL  TO  ISSUE  CERTIFICATES  OF
                 RECEIPT.
         1213. APPLICATION APPROVAL.
         1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
         1215. REPORTING AND RECORDKEEPING.
         1216. JOINT ANNUAL REPORT.
         1217. COMMISSIONER; POWERS.
   § 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "EDUCATION AFFORDABILITY CREDIT PROGRAM".
   §  1210.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, 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 ACADEMIC PROGRAM OF THE  PUBLIC  SCHOOL,
 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  ACTIVITIES  OFFERED BY OR
 THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO,  THE
 FOLLOWING FEATURES: (A) INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYS-
 ICAL  EDUCATION,  AND FAMILY AND CONSUMER SCIENCES; LITERARY, PERFORMING
 AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECHNOLOGY AND  SCIENTIFIC
 ACHIEVEMENT;  (B) INSTRUCTION OR PROGRAMMING TO MEET THE EDUCATION NEEDS
 OF AT-RISK STUDENTS OR STUDENTS WITH DISABILITIES, INCLUDING TUTORING OR
 COUNSELING; OR (C) USE OF SPECIALIZED INSTRUCTIONAL MATERIALS,  INSTRUC-
 TORS OR INSTRUCTION NOT PROVIDED BY A PUBLIC SCHOOL.
   4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
 TY WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
 (C)  OF  SECTION  FIVE  HUNDRED  ONE  OF THE INTERNAL REVENUE CODE, (II)
 COMMITS FOR THE EXPENDITURE OF OR DESIGNATES AT LEAST NINETY PERCENT  OF
 THE  REVENUE  FROM  QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR
 YEAR AND ANY INCOME DERIVED FROM QUALIFIED  CONTRIBUTIONS  FOR  SCHOLAR-

 A. 5862--A                          9
 
 SHIPS, (III) PROVIDES MORE THAN FIFTY PERCENT OF ITS SCHOLARSHIPS DURING
 A CALENDAR YEAR TO ELIGIBLE PUPILS WHO RESIDE IN A HOUSEHOLD THAT HAS AN
 INCOME  NOT TO EXCEED ONE HUNDRED FIFTY PERCENT OF THE INCOME QUALIFICA-
 TION  REQUIRED  FOR  THE REDUCED PRICE SCHOOL LUNCHES UNDER THE NATIONAL
 SCHOOL LUNCH ACT, PROVIDED HOWEVER FOR THE PURPOSES  OF  AN  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATION  FULFILLING  SUCH  REQUIREMENT, AN EDUCATIONAL
 SCHOLARSHIP ORGANIZATION MAY ENTER INTO AN AGREEMENT WITH ANOTHER EDUCA-
 TIONAL SCHOLARSHIP ORGANIZATION OR ORGANIZATIONS TO JOINTLY REPORT THEIR
 SCHOLARSHIP INFORMATION TO MEET  SUCH  REQUIREMENT;  (IV)  DEPOSITS  AND
 HOLDS  QUALIFIED  CONTRIBUTIONS  AND  ANY  INCOME DERIVED FROM 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 (V) PROVIDES SCHOLARSHIPS TO ELIGIBLE  PUPILS
 FOR USE AT NOT FEWER THAN THREE NON-PUBLIC SCHOOLS.
   5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (I) IS A RESIDENT OF THIS STATE,
 (II)  IS  SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION THIR-
 TY-TWO HUNDRED TWO OF THIS CHAPTER 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, (III) ATTENDS OR IS ABOUT TO  ATTEND  A  QUALIFIED
 SCHOOL,  AND  (IV)  RESIDES  IN A HOUSEHOLD WHICH HAS A FEDERAL ADJUSTED
 GROSS INCOME OF TWO HUNDRED FIFTY 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 CHILDREN, NOT TO EXCEED THREE HUNDRED THOUSAND
 DOLLARS.
   6. "LOCAL EDUCATION FUND" 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) IS  ESTABLISHED  FOR
 THE PURPOSE OF SUPPORTING AT LEAST ONE PUBLIC SCHOOL, OR A PUBLIC SCHOOL
 DISTRICT,  (III)  USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIB-
 UTIONS RECEIVED DURING THE CALENDAR YEAR AND  ANY  INCOME  DERIVED  FROM
 SUCH  QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL OR SCHOOLS OR
 PUBLIC SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS BEEN  ESTABLISHED
 TO  SUPPORT, AND (IV) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY
 INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS  SEPA-
 RATE  FROM  THE  FUND'S  OPERATING  OR  OTHER FUNDS UNTIL SUCH QUALIFIED
 CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
   7.  "NON-PUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
 PROGRAM OR ELEMENTARY, SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL, OTHER
 THAN  A  PUBLIC  SCHOOL,  THAT  IS  PROVIDING INSTRUCTION AT ONE OR MORE
 LOCATIONS TO AN ELIGIBLE PUPIL IN ACCORDANCE  WITH  SUBDIVISION  TWO  OF
 SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
   8.  "PUBLIC  EDUCATION  ENTITY"  MEANS  A  PUBLIC SCHOOL DISTRICT OR A
 PUBLIC SCHOOL, PROVIDED THAT  SUCH  PUBLIC  SCHOOL  DISTRICT  OR  PUBLIC
 SCHOOL 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 FROM  OPER-
 ATING OR OTHER FUNDS AND IS APPROVED TO RECEIVE AUTHORIZED CONTRIBUTIONS
 AND ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
   9.  "PUBLIC  SCHOOL"  MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
 THIS STATE PURSUANT TO ARTICLE ELEVEN OF THE NEW YORK CONSTITUTION,  BUT
 SHALL  NOT  INCLUDE  A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF
 THIS CHAPTER.
   10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
 A TAXPAYER TO A PUBLIC EDUCATION ENTITY, LOCAL  EDUCATION  FUND,  SCHOOL

 A. 5862--A                         10
 
 IMPROVEMENT  DISTRICT  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.  A CONTRIBUTION DOES
 NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN
 ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPEC-
 IFIED STUDENT.
   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  NON-PUBLIC  SCHOOL
 LOCATED IN THIS STATE.
   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, LEGAL GUARDIAN OR LEGAL GUARDIANS FOR
 SUCH ELIGIBLE PUPIL'S TUITION; PROVIDED, HOWEVER,  IN  THE  CASE  OF  AN
 ELIGIBLE  PUPIL  ATTENDING  A  PUBLIC SCHOOL IN A 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
 THIS CHAPTER LESS ANY OTHER EDUCATIONAL  SCHOLARSHIP  OR  TUITION  GRANT
 RECEIVED  BY  SUCH  ELIGIBLE  PUPIL OR HIS OR HER PARENT, PARENTS, LEGAL
 GUARDIAN OR LEGAL GUARDIANS FOR SUCH ELIGIBLE PUPIL'S TUITION, BUT  ONLY
 IF THE 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 QUALIFIED CONTRIBUTIONS
 DURING SUCH MONTHS 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 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 TERM INCLUDES A PRE-KINDERGARTEN PROGRAM OR  NOT-FOR-
 PROFIT ENTITY THAT ALLOWS THE TAXPAYER TO CHOOSE TO DONATE TO A PROGRAM,
 PROJECT  OR  INITIATIVE  IDENTIFIED BY A QUALIFIED EDUCATOR FOR USE IN A
 PUBLIC SCHOOL.
   § 1211. 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 (I) SUCH 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  (II) THE BOARD OF REGENTS HAS

 A. 5862--A                         11
 
 REVOKED SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC  SCHOOL  DISTRICT
 PURSUANT TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE.
   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  PURSUANT  TO
 SECTION TWELVE HUNDRED TWELVE AND RECEIVING APPROVAL PURSUANT TO SECTION
 TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
   §  1212.  APPLICATIONS  FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
 EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP  ORGANIZA-
 TION  AND  LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE BOARD
 OF REGENTS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND
 MANNER PRESCRIBED BY THE BOARD OF REGENTS, PROVIDED THAT  SUCH  APPLICA-
 TION  SHALL  INCLUDE:  (1)  SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL
 IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR  EDUCATIONAL  SCHOLAR-
 SHIP  ORGANIZATION  HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARA-
 GRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE  INTER-
 NAL  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  IMPROVEMENT  ORGANIZATION,  LOCAL  EDUCATION FUND OR EDUCATIONAL
 SCHOLARSHIP ORGANIZATION; AND (3) AN EDUCATIONAL  SCHOLARSHIP  ORGANIZA-
 TION SHALL PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE
 STUDENTS.  THE  BOARD  OF  REGENTS, COMMISSIONER OR DEPARTMENT SHALL NOT
 REQUIRE ANY OTHER INFORMATION FOR SUCH APPLICATION EXCEPT AS  AUTHORIZED
 IN THIS ARTICLE OR BY SECTION FORTY-THREE OF THE TAX LAW.
   §  1213.  APPLICATION APPROVAL. IN GENERAL. THE BOARD OF REGENTS SHALL
 REVIEW EACH APPLICATION TO ISSUE CERTIFICATES  OF  RECEIPT  PURSUANT  TO
 THIS  ARTICLE. APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE AT THE
 NEXT SCHEDULED MEETING OF THE BOARD OF REGENTS THAT FOLLOWS  RECEIPT  OF
 SUCH APPLICATION, BUT NOT LATER THAN THE NEXT MEETING THEREAFTER.
   §  1214.  REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
 BOARD OF REGENTS, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION  AND
 FINANCE,  MAY  REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION,
 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 ARTICLE OR SECTION  FORTY-THREE  OF  THE  TAX  LAW.  THESE
 VIOLATIONS  SHALL  INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING:
 (1) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE OR  SECTION  FORTY-
 THREE  OF  THE  TAX  LAW,  (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, DEPARTMENT OF TAXA-
 TION AND FINANCE, THE DEPARTMENT OR THE BOARD OF REGENTS WHEN  REQUESTED
 BY  THE  DEPARTMENT  OR  BOARD OF REGENTS, OR (4) THE FAILURE TO PROVIDE
 NOTICE TO THE DEPARTMENT OF TAXATION AND  FINANCE  OF  THE  ISSUANCE  OR
 NON-ISSUANCE  OF CERTIFICATES OF RECEIPT PURSUANT TO SECTION FORTY-THREE
 OF THE TAX LAW; PROVIDED, HOWEVER, THAT THE BOARD OF REGENTS  SHALL  NOT
 REVOKE  APPROVAL  PURSUANT TO THIS SECTION BASED UPON A VIOLATION OF THE
 TAX LAW UNLESS THE COMMISSIONER OF  TAXATION  AND  FINANCE  AGREES  THAT
 REVOCATION  IS WARRANTED; AND PROVIDED FURTHER THAT THE BOARD OF REGENTS
 SHALL NOT REVOKE APPROVAL PURSUANT TO THIS SECTION WHEN THE  FAILURE  TO
 COMPLY IS DUE TO CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISRE-
 GARD  FOR  THE  LAW.    WITHIN  FIVE  DAYS OF THE DETERMINATION REVOKING
 APPROVAL, THE COMMISSIONER SHALL PROVIDE NOTICE OF  SUCH  REVOCATION  TO
 THE  EDUCATIONAL  SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZA-

 A. 5862--A                         12
 
 TION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND
 TO THE DEPARTMENT OF TAXATION AND FINANCE.
   §  1215.  REPORTING  AND RECORDKEEPING. 1. REPORTING. EACH EDUCATIONAL
 SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL  EDUCA-
 TION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT RECEIVES QUALI-
 FIED  CONTRIBUTIONS  SHALL  REPORT  TO THE COMMISSIONER AND THE BOARD OF
 REGENTS BY THE LAST DAY OF FEBRUARY OF EACH CALENDAR YEAR.  SUCH  REPORT
 SHALL  BE  IN  THE  FORM  AND  MANNER  PRESCRIBED BY THE COMMISSIONER IN
 CONSULTATION WITH THE BOARD OF REGENTS, WHICH SHALL  INCLUDE  AN  ANNUAL
 FINANCIAL  AUDIT  FROM  AN  INDEPENDENT  CERTIFIED PUBLIC ACCOUNTANT AND
 SHALL NOT EXCEED THE REQUIREMENTS NECESSARY TO PRODUCE  THE  INFORMATION
 PURSUANT TO SECTION TWELVE HUNDRED SIXTEEN OF THIS ARTICLE.
   2.  RECORDKEEPING.  EACH  EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL
 IMPROVEMENT 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 OF TAXATION AND FINANCE, (B) NOTIFICATIONS MADE TO  THE  DEPARTMENT
 OF TAXATION AND FINANCE, (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  ORGANIZATIONS,  EDUCATIONAL  SCHOLARSHIP
 ORGANIZATIONS  AND  LOCAL  EDUCATION  FUNDS,  THE  APPLICATION SUBMITTED
 PURSUANT TO SECTION TWELVE  HUNDRED  TWELVE  OF  THIS  ARTICLE  AND  THE
 APPROVAL  ISSUED  BY THE BOARD OF REGENTS, AND (H) ANY OTHER INFORMATION
 AS PRESCRIBED BY REGULATION PROMULGATED  BY  THE  COMMISSIONER  OR  RULE
 PROMULGATED BY THE BOARD OF REGENTS.
   §  1216.  JOINT  ANNUAL  REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
 EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION  AND  FINANCE  AND  THE
 COMMISSIONER,  JOINTLY,  SHALL  SUBMIT  A  WRITTEN REPORT AS PROVIDED IN
 PARAGRAPH TWO OF SUBDIVISION (J) OF SECTION FORTY-THREE OF THE TAX LAW.
   § 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
 EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
 SECTION. THE COMMISSIONER SHALL MAKE  ANY  APPLICATION  REQUIRED  TO  BE
 FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS
 OF THE EFFECTIVE DATE OF THIS ARTICLE.
   §  12.  The education law is amended by adding a new section 1503-a to
 read as follows:
   § 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.
   §  13.  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
 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.
   §  14. This act shall take effect immediately and shall apply to taxa-
 ble years beginning after December 31, 2017.