What's happening
This bill allows tax deductions for expenditures to acquire, construct, renovate, or remodel child care facilities and related equipment.
Why it matters
Encourages employer-supported child care. By allowing tax deductions for businesses that create or improve child care facilities for their employees, the bill incentivizes employers to offer on-site or employer-affiliated child care, potentially making it easier for working parents to remain in the workforce.
Distinguishes between for-profit and employer-based facilities. The deduction period is shorter (24 months) for facilities primarily serving employees’ children, versus a longer (60 months) for-profit facilities, signaling a policy preference for workplace child care and providing a more immediate financial incentive to employers.
Streamlines tax treatment compared to standard depreciation. The deduction replaces the usual federal depreciation schedule, giving businesses a faster and potentially larger upfront tax benefit for qualifying child care facility investments, which could accelerate investment decisions.
Potentially increases child care capacity and quality. By reducing the cost of expanding or upgrading child care facilities and equipment, the bill may help address shortages or quality issues in child care, supporting broader workforce participation and child development outcomes.
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Who cares
Headline styles
Tax Breaks for Child Care
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4764
2017-2018 Regular Sessions
IN ASSEMBLY
February 3, 2017
Introduced by M. of A. RAMOS -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing tax deductions for expenditures made to purchase, construct, renovate or remodel child care facilities
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 188-a to read as follows:
§ 188-a. Deduction for creation or improvement of child care facilities. A taxpayer operating a child care facility within the state primarily for the children of such taxpayer's employees, shall be allowed a deduction from taxable income for any expenditure made to acquire, construct, renovate or remodel such child care facility or the equipment therein. The deduction created by this section shall be deducted over twenty-four months commencing in the month in which such acquisition, construction, renovation or remodeling is put into service. The deduction provided by this section shall be in lieu of any other allowance for the exhaustion of such property used in a trade or business held for the production of income, including a reasonable allowance for obsolescence pursuant to section one hundred sixty-seven or one hundred eighty-eight of the internal revenue code.
§ 2. Subdivision 9 of section 208 of the tax law is amended by adding two new paragraphs (u) and (v) to read as follows:
(u) A taxpayer operating a child care facility for profit, shall be allowed a deduction from entire net income for any expenditure made to acquire, construct, renovate or remodel such child care facility or the equipment therein. The deduction created by this paragraph shall be deducted over sixty months commencing in the month in which such acquisition, construction, renovation or remodeling is put into service.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08777-01-7
A. 4764 2
(v) A taxpayer operating a child care facility within the state primarily for the children of such taxpayer's employees, shall be allowed a deduction from the entire net income for any expenditure made to acquire, construct, renovate or remodel such child care facility or the equipment therein. The deduction created by this paragraph shall be deducted over twenty-four months commencing in the month in which such acquisition, construction, renovation or remodeling is put into service. The deduction provided by this paragraph shall be in lieu of any other allowance for the exhaustion of such property used in a trade or business held for the production of income, including a reasonable allowance for obsolescence pursuant to section one hundred sixty-seven or one hundred eighty-eight of the internal revenue code.
§ 3. Subsection (c) of section 612 of the tax law is amended by adding two new paragraphs 17 and 18 to read as follows:
(17) Any expenditure made by a taxpayer operating a child care facility for profit, to acquire, construct, renovate or remodel such child care facility or the equipment therein. The deduction created by this paragraph shall be deducted over sixty months commencing in the month in which such acquisition, construction, renovation or remodeling is put into service.
(18) Any expenditure made by a taxpayer operating a child care facility within the state primarily for the children of such taxpayer's employees, to acquire, construct, renovate or remodel such child care facility or the equipment therein. The deduction created by this paragraph shall be deducted over twenty-four months commencing in the month in which such acquisition, construction, renovation or remodeling is put into service. The deduction provided by this paragraph shall be in lieu of any other allowance for the exhaustion of such property used in a trade or business held for the production of income, including a reasonable allowance for obsolescence pursuant to section one hundred sixtyseven or one hundred eighty-eight of the internal revenue code.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.