What's happening
This bill increases the New York personal income tax credit for household and dependent care services and sets new income eligibility limits.
Why it matters
Expands the household and dependent care tax credit. by increasing the credit amount by 50% for eligible taxpayers, making the support more substantial for families who rely on these services to work.
Sets clear income caps for eligibility. , excluding higher-income households (joint filers over $350,000, heads of household over $300,000, and single filers over $175,000) to target the benefit toward low- and middle-income New Yorkers.
Indexes eligibility and benefit calculations to adjusted gross income. , which means the size of the credit phases out as income rises, helping to ensure that the most robust support goes to those with the greatest financial need.
May encourage workforce participation, especially among caregivers. , by reducing the net cost of dependent care and making it easier for parents or guardians to afford to remain employed.
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Who cares
Headline styles
Increase Child Care Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to investigations and government operations
- 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.
Boost Child Care Tax Credit
In Assembly Committee · Ways And Means · Sponsor Aileen Gunther
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1341
2017-2018 Regular Sessions
IN SENATE
January 9, 2017
Introduced by Sens. CARLUCCI, AVELLA, KLEIN, SAVINO, VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to the personal income tax credit for certain household and dependent care services necessary for gainful employment
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 1 of subsection (c) of section 606 of the tax law, as amended by section 1 of part M of chapter 63 of the laws of 2000, is amended to read as follows:
(1) A taxpayer shall be allowed a credit as provided herein equal to the applicable percentage of the credit allowable under section twentyone of the internal revenue code for the same taxable year (without regard to whether the taxpayer in fact claimed the credit under such section twenty-one for such taxable year). The applicable percentage shall be the sum of (i) twenty percent and (ii) a multiplier multiplied by a fraction. For taxable years beginning in nineteen hundred ninetysix and nineteen hundred ninety-seven, the numerator of such fraction shall be the lesser of (i) four thousand dollars or (ii) fourteen thousand dollars less the New York adjusted gross income for the taxable year, provided, however, the numerator shall not be less than zero. For the taxable year beginning in nineteen hundred ninety-eight, the numerator of such fraction shall be the lesser of (i) thirteen thousand dollars or (ii) thirty thousand dollars less the New York adjusted gross income for the taxable year, provided, however, the numerator shall not be less than zero. For taxable years beginning in nineteen hundred ninety-nine, the numerator of such fraction shall be the lesser of (i) fifteen thousand dollars or (ii) fifty thousand dollars less the New York adjusted gross income for the taxable year, provided, however, the numerator shall not be less than zero. For taxable years beginning after
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01823-01-7
S. 1341 2
nineteen hundred ninety-nine, the numerator of such fraction shall be the lesser of (i) fifteen thousand dollars or (ii) sixty-five thousand dollars less the New York adjusted gross income for the taxable year, provided, however, the numerator shall not be less than zero. The denominator of such fraction shall be four thousand dollars for taxable years beginning in nineteen hundred ninety-six and nineteen hundred ninety-seven, thirteen thousand dollars for the taxable year beginning in nineteen hundred ninety-eight, and fifteen thousand dollars for taxable years beginning after nineteen hundred ninety-eight. The multiplier shall be ten percent for taxable years beginning in nineteen hundred ninety-six, forty percent for taxable years beginning in nineteen hundred ninety-seven, and eighty percent for taxable years beginning after nineteen hundred ninety-seven. Provided, however, for taxable years beginning after nineteen hundred ninety-nine, for a person whose New York adjusted gross income is less than forty thousand dollars, such applicable percentage shall be equal to (i) one hundred percent, plus (ii) ten percent multiplied by a fraction whose numerator shall be the lesser of [(i)] (A) fifteen thousand dollars or [(ii)] (B) forty thousand dollars less the New York adjusted gross income for the taxable year, provided such numerator shall not be less than zero, and whose denominator shall be fifteen thousand dollars. Provided, further, that [if] for taxable years beginning on or after January first, two thousand seventeen, the amount of credit calculated pursuant to this subsection shall be increased by an additional fifty percent; provided, however, that the credit provided for in this subsection shall not be available to taxpayers who file jointly with adjusted gross incomes in excess of three hundred fifty thousand dollars, to taxpayers who file as heads of households with adjusted gross incomes in excess of three hundred thousand dollars, and to taxpayers who file singly with adjusted gross incomes in excess of one hundred seventy-five thousand dollars. If the reversion event, as defined in this paragraph, occurs, the applicable percentage shall, for taxable years ending on or after the date on which the reversion event occurred, be determined using the rules specified in this paragraph applicable to taxable years beginning in nineteen hundred ninety-nine. The reversion event shall be deemed to have occurred on the date on which federal action, including but not limited to, administrative, statutory or regulatory changes, materially reduces or eliminates New York state's allocation of the federal temporary assistance for needy families block grant, or materially reduces the ability of the state to spend federal temporary assistance for needy families block grant funds for the credit for certain household and dependent care services necessary for gainful employment or to apply state general fund spending on the credit for certain household and dependent care services necessary for gainful employment toward the temporary assistance for needy families block grant maintenance of effort requirement, and the commissioner of the office of temporary and disability assistance shall certify the date of such event to the commissioner, the director of the division of the budget, the speaker of the assembly and the temporary president of the senate.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to the personal income tax credit for certain household and dependent care services necessary for gainful employment
Purpose
This bill increases the Child and Dependent Care Credit by 50 percent on average for all qualifying taxpayers in New York State. The credit has not been increased since 1999.
Summary of provisions
Section 1. Amends paragraph 1 of subsection (c) of section 606 of the tax law to provide for a fifty percent increase in the Child and Dependent Care Credit. The credit is limited to taxpayers who file jointly with adjusted gross incomes (AGI) under $350,000; taxpayers who file as heads of households with AGI under $300,000; or taxpayers who file singly with AGI under $175,000.
Section 2. Effective date.
Justification
Today's economy requires both parents to work to make ends meet. In addition, many single parents also work to support their families. Critical to these working people is affordable child care. The State does offer a Child and Dependent Care Credit to aid in recovering the costs of child care for working families. However, the value of the credit has not been increased since 1999. During this time period, many more parents are entering the workforce and the cost of child care has increased. This bill would continue the State's effort to aid these families in the cost of child care by increasing the Child and Dependent Care Credit by an average of 50 percent.
Legislative history
2015-16: S1661A/A1882 - Investigations & Government Operations/Ways & Means 2013-14: S5451-B/A7815-B - Investigations & Government Operations/Ways & Means
Fiscal implications
This bill will save taxpayers $100 million.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.