What is the Education Investment Incentives (EIIA) Act? The EIIA is designed to provide much needed relief for tuition paying parents, while also enhancing our public schools system Once passed into law the EIIA will provide millions of dollars in new aid for both public and private schools. Schools can then access this new funding through various organizations, in the form of grants and tuition scholarships The EIIA would not affect the amount of state aid for public schools; it will create a new fund of additional monies

How the Education Investment Incentives Will Work The EIIA will be funded by donations from businesses and individuals Donations will then be distributed to qualified organizations, based on the donor’s request These organizations will be in charge of awarding grants and scholarships to approved schools, with 50% of the total funds going to public schools and 50% going to private schools Total donations are capped at $150M in 2016, $225M in 2017 and finally $300M in 2018 and thereafter

Donations At the start of a new year businesses and individuals will be able to apply for a contribution authorization certificate from the Department of Tax and Finance (DTF). This certificate if a approved will detail how much they may donate and if their chosen organization is approved Once an approved certificate is received by the tax payer, a donation may be made to the qualified organization of their choice, in exchange for a credit that is the lesser of 90% of the amount contributed or $1 million After making a timely and authorized contribution taxpayers will receive a certificate of receipt. This receipt is needed to claim the credit, and is important to save because the credit is non-refundable and may be carried forward for 5 years

Public Education Entity Public School or Public School District Automatically approved by the State Dept of Education to issue Certificates of Receipt Educational Scholarship Organization Provides scholarships for students to attend no less than one of three non-public schools Can provide scholarships to public schools Must be approved by the State Dept of Education Local Education Fund Supports at least one Public School or Public School District Must be approved by the State Dept of Education Eligible Organizations School Improvement Organization Assists Public Schools or Public School Districts in the provision of educational programs Must be approved by the State Dept of Education

Educational Scholarship Organization A Charitable organization that: Is tax Exempt under Internal Revenue Code section 501(c)(3) Commits at least 90% of the qualified contributions received during the year for use as educational scholarships Must provide scholarships to at least three different non- public schools Provides tuition scholarships for eligible pupils to attend qualified schools in an amount not to exceed the tuition charged to attend such school The scholarship will be the full price of tuition less any other educational scholarship received by the pupil Is approved by the State Department of Education to issue Certificates of Receipt

Educational Scholarship Organization (Cont.) Applications for approval to issue certificates of receipt Each educational scholarship organization will need to submit an application to the board of regents for approval to issue certificates of receipt Application must include: – (1) Documentation that the educational scholarship organization is tax exempt under Internal Revenue Code section 501(c)(3) – (2) The most recent annual financial audit by a certified public accountant, and a list of names and addresses of all members of the governing board of the educational scholarship organization – (3) Criteria for the awarding of scholarships to eligible students

Eligible Pupil A child who: Is a New York resident Is school-aged or 4 years old as of 12/1 of the year when the child starts pre-k Attends or is about to attend a public or nonpublic school in NY Resides in a household with Federal Adjusted Gross Income that is $500,000 or less. For households with 3 or more dependent children, this amount is increased by $10,000 per dependent child for each additional child past 2 children (so, child 3, 4, 5). The maximum amount of FAGI is $550,000

Eligible Private School A school that is On the State Education Department’s (SED) list of approved institutions (SED will maintain an on-line list of approved entities) Designated by at least one Educational Scholarship Organization to receive scholarships

Other Credits Available to Individual Taxpayers Home-Based Instructional Materials Credit Credit amount is the lesser of amount spent or $200. Credit is for amounts expended for instructional materials approved by the Board of Regents for use by home-based educational programs Refundable Credit Instructional Materials and Supplies Credit Credit amount is the lesser of amount spent or $200. Credit is for amounts expended for instructional materials or supplies that are purchased by a teacher or instructor at a public or non-public school Refundable Credit