Source: https://www.nysenate.gov/legislation/bills/2019/s8005
Timestamp: 2020-07-13 10:37:00
Document Index: 482853736

Matched Legal Cases: ['§45', '§208', 'Art 25', '§1209', '§1503', '§ 2', '§  45', '§  3', '§  4', '§ 5', '§ 6', '§ 7', '§ 8', '§ 9', '§ 10', '§ 1209', '§  1210', '§  1211', '§ 1212', '§ 1213', '§  1214', '§ 1215', '§  1216', '§ 1217', '§  11', '§ 1503', '§  12', '§  13']

NY State Senate Bill S8005
senate Bill S8005
Establishes the "education affordability act" and tax credit
Get Status Alerts for S8005
Mar 09, 2020 referred to investigations and government operations
S8005 (ACTIVE) - Details
Add §45, amd §§208, 210-B, 606 & 615, Tax L; add Art 25 §§1209 - 1217, §1503-a, Ed L
S8005 (ACTIVE) - Summary
Establishes the "education affordability act" and tax credit; provides credits against income and corporate franchise tax for various qualified education investments including scholarships, education funds and home-based instructional materials.
S8005 (ACTIVE) - Sponsor Memo
BILL NUMBER: S8005
ing the "education affordability act"
Establishes the "education affordability act" and tax credit.
SECTION 2: Provides for definitions in Tax Law, sets limits for the
maximum value of credit that may be received and income eligibility for
recipients. Also directs the manner in which information pertaining to
the tax credit should be disseminated and in which contributions shall
be certified. Caps the maximum total value of tax credits. Provides for
a written report on how the credit has been utilized.
SECTION 3: Conforming language
SECTION 4: Creates the Education Affordability Tax credit
SECTION 5: Conforming language
SECTION 6: Establishes the home-based instructional materials credit
SECTIONS 7-8: Conforming Language
SECTION 9: Establishes the Helping Open Opportunities to Learn Tax
Credit for low and middle income taxpayers
SECTION 10: Provides definitions and methods of contributions in
SECTION 11: Allows school districts to accept and solicit gifts and
donations, and exempts such gifts from determinations of State aid
SECTION 12: Severability clause
Parents worry about their children's education. For many parents, the
decision to enroll their child in one particular school over another is
difficult. Not every learning environment is a good fit for every child.
This bill would provide some monetary relief to lower and middle income
parents who pay tuition for their child to attend a primary or secondary
school. Our children are our future. We need to trust that their parents
have their best interest at heart when they are making decisions about
their education. We should support their decisions regarding the educa-
tion of their children.
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 enter-
prise. 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. Addi-
tionally, permitting school personnel to claim a credit for the purchase
of classroom instructional materials and supplies will ensure a wider
availability of such materials and supplies for all students.
"EDUCATION AFFORDABILITY" TAX CREDIT
This bill would provide a tax credit for individuals and corporate fran-
chise taxpayers that make qualified contributions to:
(1) Public Schools;
(2) School Improvement Organizations or Local Education Funds, which are
defined as not-for-profit organizations that provide support to public
(3) Educational Scholarship Organizations, which are defined as not-for-
profit organizations that provide at least 90% of their funds for schol-
arships to eligible pupils for use at not fewer than three non-public
a. Eligible pupils are defined as children that reside in a household
with a federal adjusted gross income of $500,000 or less, provided
however, for households with 3 or more dependent children, such income
level shall be increased by $10,000 per child in excess of 2, not to
exceed $550,000.
It would also allow taxpayers to claim a maximum credit amount of 90% of
the taxpayer's qualified contributions, capped at $1 million plus any
amount carried over from a prior year. Any amount of qualified contrib-
utions that exceed tax liability for any given tax year may be carried
It would also require taxpayers to add any amount claimed as a charita-
ble donation at the Federal level back to the taxpayer's New York taxa-
ble income. This prevents taxpayers from using a qualified contribution
as both a charitable itemized deduction and a credit against their New
York State income tax.
The tax credit is capped at $150 million for 2021, $225 million for
2022, and $300 million for 2022 and thereafter. If the cap is not
reached in a particular calendar year, the unused amount can be carried
forward to the immediately succeeding calendar year.
* 50% of the annual cap is available for qualified contributions made to
public schools, School Improvement Organizations, and Local Education
* 50% of annual cap is available to Educational Scholarship Organiza-
It also requires an annual joint report from the Commissioners of the
Departments of Taxation and Finance and Education, which shall include
statistics regarding the number of qualified contributions made to each
type of recipient and the distribution of the recipients by county.
"HOME-BASED INSTRUCTIONAL MATERIAL" TAX CREDIT:
Bill provides a refundable personal income tax credit for home-based
instructional materials purchased by the taxpayer.  Establishes that the
amount of the credit is the lesser of $200 or 100% of the amount used to
purchase instructional materials for home-based educational programs.
"TEACHER INSTRUCTIONAL MATERIAL" TAX CREDIT:
* Provides a refundable personal income tax credit for teachers and
instructors who (1) work in a public, charter or non-public school for
at least 900 hours during a taxable year; and (2) purchase classroom
instructional materials and supplies that are used in classroom instruc-
tion at the public, charter or non-public school for which the taxpayer
* Amount of credit is the lesser of $200 or 100% of the amount used to
purchase instructional materials and supplies.
"HELPING OPEN OPPORTUNITIES TO LEARN" TAX CREDIT:
Finally the bill creates an additional tax credit to low- and middle-in-
come taxpayers (defined as those with income less than or equal to 720%
of federal power guidelines - this would equate to a family of four in
The credit would be received for families how have qualified primary or
secondary education tuition expenses.
The credit would be for the lesser of 12% of total Per Pupil State
Public School Expenditures or 15% of tuition expenses.
* The FY 2021 Executive budget would provide $10,608 per pupil spending
* 12% of this amount would equal a tax credit of $1,273 for 2020-21
2018: S.5011 - Referred to Investigations and Government Operations
2017: S.5011 - Referred to Investigations and Government Operations
$150 million for calendar year 2021, $225 million in calendar year 2022,
and $300 million for each calendar year thereafter beginning in 2023 for
the tax credit based on qualified contributions; undetermined for the
tax savings for the other tax credits.
S8005 (ACTIVE) - Bill Text download pdf
the "education affordability act".
§ 2.  The tax law is amended by adding a new section  45  to  read  as
§  45.  EDUCATION  AFFORDABILITY TAX CREDIT.  (A) DEFINITIONS. FOR THE
LBD15002-01-0
S. 8005                             2
(C)  AMOUNT  OF  CREDIT.  FOR  TAXPAYERS  WHOSE FEDERAL ADJUSTED GROSS
INCOME IS LESS THAN THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE  YEAR
DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
AMOUNT  OF  THE  CREDIT  SHALL BE NINETY PERCENT OF THE TAXPAYER'S TOTAL
QUALIFIED  CONTRIBUTIONS,  CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND
DOLLARS. FOR TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS  INCOME  IS  GREATER
THAN  OR  EQUAL  TO  THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR
AMOUNT OF CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE  TAXPAYER'S  TOTAL
TAXPAYER  SHALL NOT CLAIM CREDIT IN EXCESS OF EIGHT HUNDRED SEVENTY-FIVE
S. 8005                             3
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
THE TWENTIETH DAY OF FEBRUARY. CONTRIBUTION  AUTHORIZATION  CERTIFICATES
FOR  APPLICATIONS  RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN FIVE
TION, LOCAL EDUCATION FUND OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  TO
WHICH  THE  TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION, AND (VII) ANY
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
SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF  RECEIPT  FOR  ANY
CONTRIBUTION  MADE  BY  A  TAXPAYER UNLESS SUCH PUBLIC EDUCATION ENTITY,
SCHOLARSHIP  ORGANIZATION  HAS  BEEN  APPROVED  TO ISSUE CERTIFICATES OF
RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO  PUBLIC
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
S. 8005                             4
DEPARTMENT  THAT  THE  DEPARTMENT  ISSUED  A  CONTRIBUTION AUTHORIZATION
NOTIFY 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.
S. 8005                             5
TWO  THOUSAND  TWENTY-ONE SHALL BE ONE HUNDRED FIFTY MILLION DOLLARS. IN
CALENDAR YEAR TWO THOUSAND  TWENTY-TWO  THE  MAXIMUM  PERMITTED  CREDITS
YEAR  TWO  THOUSAND  TWENTY-THREE AND EACH CALENDAR YEAR THEREAFTER, THE
MAXIMUM PERMITTED CREDITS 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.
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION AFFORD-
ABILITY  TAX  CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION FOR ARTICLES
DESIGNATED  EMPLOYEES  OF  THE DEPARTMENT, THE COMMISSIONER 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 EDUCATION 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 COMMISSIONER OF EDUCATION.
(L)  CROSS  REFERENCES.  FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 55;
S. 8005                             6
2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (KKK).
§  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 26 to read as follows:
(26) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
CLAIMED PURSUANT TO SUBDIVISION FIFTY-FIVE OF SECTION TWO HUNDRED  TEN-B
§  4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 55 to read as follows:
55. EDUCATION AFFORDABILITY TAX CREDIT. (A)  ALLOWANCE  OF  CREDIT.  A
SECTION FORTY-FIVE OF THIS CHAPTER, AGAINST  THE  TAX  IMPOSED  BY  THIS
§ 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xlvi) to read as
(XLVI) EDUCATION AFFORDABILITY       AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (KKK)    SUBDIVISION FIFTY-FIVE OF SECTION
§ 6. Section 606  of  the  tax  law  is  amended  by  adding  two  new
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, A TAXPAYER
DEPARTMENT  FOR  USE  IN  NON-PUBLIC  HOME-BASED  EDUCATIONAL  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.
(2) SPOUSES 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.
YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND  TWENTY-ONE,  A
FORTY-THREE OF THIS CHAPTER, FOR AT LEAST NINE HUNDRED  HOURS  DURING  A
S. 8005                             7
COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF OF THE  TAX
§ 7. Section 606 of the tax law is amended by adding a new  subsection
(KKK)  EDUCATION  AFFORDABILITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A
FORTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
§ 8. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 10 to read as follows:
(10) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR  CONTRIBUTIONS  MADE  FOR
WHICH  A  TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (KKK) OF SECTION SIX
§ 9. Section 606 of the tax law is amended by adding a new  subsection
(lll) to read as follows:
(LLL)  HELPING  OPEN OPPORTUNITIES TO LEARN TAX CREDIT. (1) GENERAL. A
RESIDENT LOW AND MIDDLE INCOME TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST  THE
TAX  IMPOSED  BY  THIS  ARTICLE  FOR  THE QUALIFIED PRIMARY OR SECONDARY
EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
(2) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  TERMS
(A)  "RESIDENT  LOW  AND MIDDLE INCOME TAXPAYER" SHALL MEAN A TAXPAYER
WHO IS A FULL-YEAR RESIDENT OF THIS  STATE  AND  WHOSE  FEDERAL  TAXABLE
INCOME  IS  EQUAL  TO  OR  LESS THAN SEVEN HUNDRED TWENTY PERCENT OF THE
FEDERAL POVERTY GUIDELINES, AS PROMULGATED ANNUALLY BY THE UNITED STATES
DEPARTMENT OF HEALTH AND HUMAN SERVICES, FOR THE TAXABLE YEAR FOR  WHICH
THIS CREDIT IS CLAIMED.
(B)  "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" SHALL
MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF AN  ELIGI-
BLE  STUDENT AT A QUALIFIED SCHOOL, AS DEFINED IN SECTION FORTY-THREE OF
THIS CHAPTER. PROVIDED, HOWEVER, THAT ANY TUITION PAYMENTS MADE FOR SUCH
ELIGIBLE STUDENT PURSUANT TO THE RECEIPT OF FINANCIAL AID OR ONE OR MORE
SCHOLARSHIPS SHALL BE EXCLUDED FROM THE DEFINITION OF THE  TERM  "QUALI-
FIED  PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" FOR SUCH ELIGIBLE
(C) "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 WHO IS ENROLLED IN,
AND FOR WHOM QUALIFIED PRIMARY AND SECONDARY EDUCATION TUITION  EXPENSES
HAVE BEEN PAID FOR, KINDERGARTEN OR GRADE ONE THROUGH TWELVE IN A QUALI-
FIED SCHOOL.
(3)  AMOUNT  OF  CREDIT.  THE AMOUNT OF CREDIT THAT A RESIDENT LOW AND
MIDDLE INCOME TAXPAYER MAY CLAIM FOR THE QUALIFIED PRIMARY OR  SECONDARY
EDUCATION  TUITION  EXPENSES  PAID FOR EACH ELIGIBLE STUDENT SHALL EQUAL
THE LESSER OF TWELVE PERCENT OF THE TOTAL PER PUPIL STATE PUBLIC  SCHOOL
S. 8005                             8
EXPENDITURES  OR  FIFTEEN  PERCENT OF THE QUALIFIED PRIMARY OR SECONDARY
EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE  YEAR
FOR  SUCH  ELIGIBLE  STUDENT. THE TOTAL STATE PUBLIC SCHOOL EXPENDITURES
SHALL  EQUAL  THE  SCHOOL  AID,  AS REPORTED IN THE STATE ENACTED BUDGET
FINANCIAL PLAN FOR THE TAXABLE YEAR IN  WHICH  THE  SCHOOL  YEAR  BEGAN,
DIVIDED  BY  THE  TOTAL  NUMBER OF STUDENTS ENROLLED IN KINDERGARTEN AND
GRADES ONE THROUGH TWELVE AT PUBLIC SCHOOLS IN THIS STATE  AS  PUBLISHED
BY THE DEPARTMENT OF EDUCATION FOR SUCH TAXABLE YEAR.
(4)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
(5)  SPOUSES.  IN THE CASE OF SPOUSES WHO FILE A JOINT FEDERAL RETURN,
BUT WHO ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES  SEPARATELY,  THE
CREDIT  ALLOWED  PURSUANT  TO THIS SUBSECTION MAY BE APPLIED AGAINST THE
TAX IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
§ 10. The education law is amended by adding a new article 25 to  read
EDUCATION AFFORDABILITY PROGRAM
§ 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "EDUCATION AFFORDABILITY PROGRAM".
§  1210.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
S. 8005                             9
FIED  CONTRIBUTIONS  IN  AN  ACCOUNT THAT IS SEPARATE FROM THE ORGANIZA-
TION'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS  OR
INCOME  ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO ELIGIBLE
(B) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION  THIRTY-
DECEMBER  FIRST  OF THE YEAR IN WHICH THEY ARE ENROLLED IN A PRE-KINDER-
GARTEN 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  HOUSE-
HOLDS  WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL BE
INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS OF  TWO,
6.  "LOCAL  EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A) IS
7.   "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
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
9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR  SECONDARY  SCHOOL  IN
THIS  STATE  GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION OR CHARTER
A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZA-
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
S. 8005                            10
11. "QUALIFIED EDUCATOR" MEANS AN  INDIVIDUAL  WHO  IS  A  TEACHER  OR
§  1211.  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS
OR  INCOME  ARE  WITHDRAWN  FOR USE, OR (B) THE COMMISSIONER HAS REVOKED
§ 1212. APPLICATIONS FOR APPROVAL TO ISSUE  CERTIFICATES  OF  RECEIPT.
TION, AND LOCAL EDUCATION  FUND  SHALL  SUBMIT  AN  APPLICATION  TO  THE
S. 8005                            11
COMMISSIONER  FOR  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM
AND MANNER PRESCRIBED BY THE COMMISSIONER; PROVIDED THAT  SUCH  APPLICA-
TION  SHALL  INCLUDE:  (A)  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; (B) 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 (C) AN EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION SHALL PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE
STUDENTS. NEITHER THE COMMISSIONER OR THE DEPARTMENT SHALL  REQUIRE  ANY
ARTICLE OR BY SECTION FORTY-THREE OF THE TAX LAW.
§ 1213. APPLICATION  APPROVAL.  THE  COMMISSIONER  SHALL  REVIEW  EACH
APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE WITHIN SIXTY DAYS  OF
RECEIPT OF SUCH APPLICATION.
§  1214.  REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
COMMISSIONER, IN CONSULTATION WITH  THE  COMMISSIONER  OF  TAXATION  AND
VIOLATED THIS ARTICLE OR SECTION  FORTY-THREE  OF  THE  TAX  LAW.  THESE
(A) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE OR  SECTION  FORTY-
THREE  OF  THE  TAX  LAW,  (B) THE FAILURE TO MAINTAIN FULL AND ADEQUATE
FAILURE  TO SUPPLY SUCH RECORDS TO THE COMMISSIONER OR THE DEPARTMENT OF
TAXATION AND FINANCE WHEN REQUESTED BY THE DEPARTMENT OR THE  DEPARTMENT
OF  TAXATION  AND  FINANCE,  OR (D) THE FAILURE TO PROVIDE NOTICE TO THE
DEPARTMENT OF TAXATION AND FINANCE OF THE  ISSUANCE  OR  NONISSUANCE  OF
CERTIFICATES  OF RECEIPT PURSUANT TO SECTION FORTY-THREE OF THE TAX LAW;
PROVIDED HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSU-
ANT 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 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 AND TO THE DEPARTMENT OF
§ 1215. RECORDKEEPING. EACH SCHOOL  IMPROVEMENT  ORGANIZATION,  EDUCA-
S. 8005                            12
ARTICLE AND THE APPROVAL ISSUED BY THE COMMISSIONER, AND (H)  ANY  OTHER
INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMISSIONER.
§  1216.  JOINT  ANNUAL  REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
SUBDIVISION (K) OF SECTION FORTY-THREE OF THE TAX LAW.
§ 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
§  11.  The education law is amended by adding a new section 1503-a to
§ 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
§  12.  Severability. If any provision of this section or the applica-
§  13. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2020.