Establishes an elder care tax credit

Section 2. Section 210 of the tax law is amended to provide employers a tax credit equal to twenty-five percent of total expenditures for the provision of elder care services to elder dependents of employees.

Justification

As of 1999, New York continues to lead the nation in per capita spending on Medicaid at $1,352. As the percentage of the elderly population grows, due to the aging baby boom generation, and advances in medical technologies are made, the aging population will increase at an exponential rate. Therefore, it is in the financial interest of the state to develop and promote incentives to encourage cost effective living arrangements.

One living arrangement option for the elderly, would be to reside with a family member who can help provide for their needs. The family is an important means of support for an elderly person, financially, physically and emotionally. The support a family can provide to an aging person could prevent and forestall the senior from needing to reside in a costly residential setting. When a senior does need a nursing home facility, the expense is often picked up by the state in the form of Medicaid because the senior often spends down his/her available funds. The $1,000 credit would act as an incentive to facilitate the transition of the elderly into a family member's home and aid the family for care expenses.

This bill would also provide an incentive to employers to provide dependent care services, during working hours, to their employees who care for elderly dependents by granting a tax credit for expenses paid as a result of such care. The provision of dependent care services would also create a climate in the work place that would attract and retain employees. Persons caring for an elderly relative often experience conflicts between work and attending to the needs of their elderly parent, grandparent, aunt, or uncle. A tax credit would encourage employers to develop on-site facilities for elder care and/or assist employees in finding appropriate sites for their elder loved one. This would benefit not only the employee and his/her elderly loved one, but also the employer by reducing absenteeism and distraction of the employee while at the job. The twenty-five percent tax credit authorized under this legislation would be applied for the cost of any contract executed by the employer for off-site elder care or, if the employer elects to provide on-site adult day care, for expenses of staffing, learning and recreational materials and equipment, and the construction and maintenance of a facility. Establishment of an elder care tax credit for family members and for employers would provide needed incentives to encourage increased options for our state's senior population when and if they reach a stage in their life where it is no longer feasible to live entirely independently.

Legislative history

S.5468A of 1999/2000; Referred to Investigations and Government Operations S.2120 of 2001/2002; Referred to Investigations and Government Operations S.1514A of 2003/2004; Referred to Investigations and Government Operations S.206 of 2005/2006; Referred to Investigations and Government Operations S.1098 of 2007/2008; Referred to Senate Investigations and Government Operations

Fiscal implications

None.

Effective date

This act shall take effect immediately and shall apply to the taxable years beginning on or after January 1, 2011.