BILL NUMBER: S49
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend part LL of chapter 59 of the laws of 2018 amending the
state finance law relating to establishing the charitable gifts trust
fund and the health charitable account, and the elementary and secondary
education charitable account, in relation to increasing the contribution
cap to twenty million dollars
 
PURPOSE:
The purpose of this bill is to increase the cap for the SUNY Charitable
Tax Credit Program from $10 million to $20 million to meet the growing
demand for tax credits among donors and to expand financial support for
the State University of New York (SUNY) system.
 
SUMMARY OF PROVISIONS:
*Section 1: Amends Chapter 59 of the laws of 2018, Part LL, which refer-
ences Article 22 and Section 606 of the New York State tax law, increas-
ing the maximum total allowable tax credits for charitable contributions
made to the SUNY system from $10 million to $20 million annually.
*Section 2: Establishes reporting requirements for the State University
of New York (SUNY), mandating an annual report detailing contributions,
fund usage, and institutional impact.
*Section 3: Provides that the act shall take effect on the first of
January following its enactment.
 
JUSTIFICATION:
The SUNY Charitable Tax Credit Program, authorized in 2018, provides
significant tax incentives to donors who contribute to the SUNY Impact
Foundation. The program offers an 85% tax credit against New York State
income tax and a 15% deduction against federal income tax, making it
highly attractive to potential donors.
However, the current $10 million cap on allowable tax credits has been
reached, and applications for tax credits now exceed this limit. This
demand underscores the program's success and the potential for even
greater private investment in public higher education. In creasing the
cap to $20 million will enable the State University of New York to
secure additional funds that can be used for educational programs, scho-
larships, and other critical improvements across SUNY campuses. This
expansion is necessary to continue attracting private contributions that
support the quality and accessibility of public education in New York
State.
 
PRIOR LEGISLATIVE HISTORY:
New legislation
 
FISCAL IMPLICATIONS:
Increasing the cap from $10 million to $20 million will result in a
higher annual fiscal impact due to the expanded availability of tax
credits. However, the economic benefits from increased private donations
to SUNY institutions-funding scholarships, research, and facilities-are
expected to provide substantial returns to the state.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become law.