Provides business tax credit for employer provided day care

1 Co-sponsor

• Ruben Diaz

BILL NUMBER:S1845A

Title of bill

An act to amend the tax law, in relation to providing credits against the tax imposed upon employers providing certain day care services to the children of its employees

Purpose

This legislation creates a tax incentive program for employer-supported day care services for the pre-school and primary school-age children of its employees.

Summary of provisions

Section 210, 1456, 1511 and 606 are amended with the addition of new subsections.

Justification

These changes in the Tax Law establish a twenty percent tax credit program for employers who provide certain day care services to their employees. The tax credit will be provided for day care services for pre-school and primary school-age children, including:

1. employer contracts with third party day care providers;

2. employer provision of direct reimbursement to employees for child care expenses;

3. operational costs of employer provided on-site or near site day care services; or

4. expenditures incurred for the training of employees of third party providers who render day care services to their employees.

In order to meet the guidelines of this tax program, all of the day care services utilized must meet the governing standards of the State Department of social Services and the Human Resources Administration for New York city. In addition, this bill provides that no credit will be given to employers who discriminate against their employees on the basis of race, creed, religion, sex, or national origin, as a determining factor in making day care services available. This legislation will encourage employers to provide day care services for their employees, which will undoubtedly encourage individuals to enter the work force. These aforementioned propensities will subsequently contribute to the enhancement of the New York State economy.

Legislative history

04/07/09 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS 01/06/10 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Fiscal implications

None.

Effective date

This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2013.