The Bill

Education Investment Tax Credit Legislation

Gov. Andrew Cuomo proposed a version of the Education Tax Credit in his 2015-16 Executive Budget, which is due to be adopted in its final form by April 1, 2015. Of the proposed $100 million in tax credits, at least half would be set aside to increase donations to public schools and their teachers.

A State Senate version of the Education Investment Tax Credit was passed in January 2015 by a wide bi-partisan majority.

The State Assembly also has proposed the Education Investment Tax Credit, which has a majority of the Assembly members as co-sponsors. The new Assembly Speaker Carl E. Heastie was a co-sponsor of the bill for the last three years.

Of the proposed $300 million in tax credits in the Senate and Assembly versions of the bill, at least half would be set aside to increase donations to public schools and their teachers.

Comparison of Key Provisions

A side-by-side comparison of key provisions of the current Education Investment Tax Credit bills proposed in Gov. Cuomo's Executive Budget and in the Assembly and Senate is available here.

Education Tax Credit Bill Text

Gov. Cuomo's Executive Budget Bill No. S.2006 / A.3006

Senate Bill No. S.1976

Assembly Bill No. A.2551

Summary

The Education Investment Tax Credit would provide a state tax credit for:

1. Classroom Supplies

Reimburse teachers up to $200 for their out-of-pocket expenses for classroom supplies (Assembly & Senate versions).

2. Classroom Projects

Increase donations for teacher-selected classroom projects through DonorsChoose and similar nonprofit organizations.

3. Arts, Music, and Sports

Increase donations to nonprofits to provide arts, music, history, after-school, and other academic programming.

4. Scholarships

Increase donations for nonprofit scholarship organizations to provide scholarships to students attending pre-K through 12th grade, including public and private schools.

The Education Investment Tax Credit would increase the investment in education by encouraging more charitable donations – donations that benefit all students regardless of what type of school they attend.