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Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Establishes a childcare advance which enables certain taxpayers to defer payment of a portion of their tax liability
In Assembly Committee · Ways And Means · Sponsor Daniel O'Donnell
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing a childcare advance which enables certain taxpayers to defer payment of a portion of their tax liability
Purpose
Establishes the Childcare Advance, a deferral of state taxes to help families afford the costs of childcare.
Summary of provisions
New section 608 establishes the Childcare Advance, a deferral of state taxes to help families afford the costs of childcare.
Section 608(a) permits resident taxpayers with eligible "employment-related" expenses, as defined in Internal Revenue Code ("IRC") Section 21(b) (2) for care of a dependent under age 5 to defer payment of their tax liability for that taxable year by the amount of those expenses, but not to exceed two thousand dollars.
Section 608(b) provides for repayment of deferrals over a ten year period commencing when the taxpayer is no longer taking the deferral, and in all cases requires repayment of each year's deferral over a ten-year period starting not later than five years after that deferral. Repayment is to be made without interest.
Section 608(c) provides for repayment in cases where a taxpayer moves to a residence outside New York which does not maintain tax reciprocity with New York.
Section 608(d) provides for notice from the Department to taxpayers who have taken the deferral established in Section (a) above of their deferred liability, tax year in which repayment will begin, and an estimate of the amount for which taxpayer will be liable once eligibility expires.
Section 608(f) directs regulations to permit the repayment of deferrals through tax withholding and to address repayment in cases of divorce.
Existing law
New
Justification
Childcare costs are one of the greatest expenses for families with young children in New York State. New York families face some of the highest childcare costs in the nation, including average annual costs from $10,140 to $14,144 per year for an infant and $9,776 to $11,700 for a four-year-old.
Childcare costs exceed housing costs for many families and consume a significant percentage of a family's income. And these costs come at a critical time for families, when the care provided to children has the greatest impact on their long-term development and when many young families are just starting out and working to make other investments.
At the same time, affordable childcare is critical for working families, and can have positive impacts on children's health and long-term development and women's participation in the workforce, among other benefits. By allowing families to defer up to $2,000 of their state tax liability each year while young children are in childcare, the "Childcare Advance" would make childcare substantially more affordable for thousands of New York families and result in millions per year in savings and financial returns.
Legislative history
New
Fiscal implications
To be determined.
Effective date
Tax year 2016.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.