What's happening
This bill creates a 20% tax credit for employers who provide licensed day care services to employees’ children in New York.
Why it matters
Expands employer options for providing child care. The bill allows employers to qualify for the tax credit whether they contract with external child care providers, reimburse employees for their child care expenses, or offer their own on-site or nearby facilities—potentially broadening the range of workplace benefits and flexibility for both employers and employees.
Promotes use of regulated, quality child care. Only day care services that are licensed and regulated by the appropriate state or city agencies qualify for the credit, helping ensure that children are cared for in safe, professionally overseen environments.
Includes anti-discrimination and targeted support provisions. Employers are barred from discriminatory practices in offering child care benefits, but may give preference to employees who need child care in order to work—potentially supporting workforce participation among parents and guardians who might otherwise be unable to remain employed.
Excludes school-age children during school hours. The tax credit does not apply if the day care facility admits children who are required by law to be in school during regular hours, ensuring the policy supports early childhood care rather than substituting for compulsory education.
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Who cares
Headline styles
Tax Credit for Employer Daycare
Plain English, a few words. Used as the page title.
Sponsors
4 Co-sponsors
2 Multi-sponsors
History
- Referred to ways and means
- Referred to ways and means
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.
Provides business tax credit for employer provided day care
In Senate Committee · Budget And Revenue · Sponsor Timothy M. Kennedy
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1506
2019-2020 Regular Sessions
IN ASSEMBLY
January 15, 2019
Introduced by M. of A. MAGNARELLI, COOK, ORTIZ, SCHIMMINGER -- Multi- Sponsored by -- M. of A. ABBATE, GUNTHER -- read once and referred to the Committee on Ways and Means
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Employer day care credit. (a) A taxpayer shall be allowed a credit against the tax imposed by this article to the extent of twenty percent of the expenses incurred during a taxable year by the taxpayer in making available day care services to the children and wards of employees and in training persons employed by the taxpayer or by a third party provider rendering such services. A taxpayer may make such services available as follows:
(1) pursuant to a written contract with a third party provider;
(2) by reimbursing an employee for expenses incurred by the employee for such services; or
(3) by providing on-site or near-site day care services.
In no event shall the amount of such credit exceed the amount of tax otherwise due pursuant to this article for any taxable year.
(b) (1) No such credit shall be allowed to a taxpayer who unfairly discriminates against any employee on the basis of race, creed, religion, sex, national origin, age, disability, or marital status in making available day care services.
(2) A taxpayer may give a preference to children or wards of employees for whom obtaining or maintaining gainful employment is contingent upon the availability of day care services for such children or wards, in providing services qualifying for a credit hereunder.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00652-01-9
A. 1506 2
(c) No such credit shall be allowed to a taxpayer unless the facility or program rendering day care services is licensed by and subject to the regulations of the department of family assistance or the human resources administration governing day care facilities in New York city.
(d) No such credit shall be allowed to a taxpayer if the facility or program rendering day care services admits, during regular school hours, children who are subject to the provisions of the education law with regard to compulsory school attendance.
§ 2. Section 1511 of the tax law is amended by adding a new subdivision (dd) to read as follows:
(dd) Employer day care credit. (1) A taxpayer shall be allowed a credit against the tax imposed by this article to the extent of twenty percent of the expenses incurred during the taxable year by the taxpayer in making available day care services to the children and wards of employees and in training persons employed by the taxpayer or by a third party provider rendering such services. A taxpayer may make such services available as follows:
(A) pursuant to a written contract with a third party provider;
(B) by reimbursing an employee for expenses incurred by the employee for such services; or
(C) by providing on-site or near-site day care services.
In no event shall the amount of such credit exceed the amount of tax otherwise due pursuant to this article for any taxable year.
(2) (A) No such credit shall be allowed to a taxpayer who unfairly discriminates against any employee on the basis of race, creed, religion, sex, national origin, age, disability or marital status in making available day care services.
(B) A taxpayer may give a preference to children or wards of day care dependent employees for whom obtaining or maintaining gainful employment is contingent upon the availability of day care services for such children or wards, in providing services qualifying for a credit hereunder.
(3) No such credit shall be allowed to a taxpayer unless the facility or program rendering day care services is licensed by and subject to the regulations of the department of family assistance or the human resources administration governing day care facilities in New York city.
(4) No such credit shall be allowed to a taxpayer if the facility or program rendering day care services admits, during regular school hours, children who are subject to the provisions of the education law with regard to compulsory school attendance.
§ 3. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Employer day care credit. (1) A taxpayer shall be allowed a credit against the tax imposed by section six hundred one of this part to the extent of twenty percent of expenses incurred during the taxable year by the taxpayer in making available day care services to the children and wards of employees and in training persons employed by the taxpayer or by a third party provider rendering such services. A taxpayer may make such services available as follows:
(A) pursuant to a written contract with a third party provider;
(B) by reimbursing an employee for expenses incurred by the employee for such services; or
(C) by providing on-site or near-site day care services.
In no event shall the amount of such credit exceed the amount of tax otherwise due pursuant to this article for any taxable year.
(2) (A) No such credit shall be allowed to a taxpayer who unfairly discriminates against any employee on the basis of race, creed, reli-
A. 1506 3
gion, sex, national origin, age, disability or marital status in making available day care services.
(B) A taxpayer may give a preference to children or wards of employees for whom obtaining or maintaining gainful employment is contingent upon the availability of day care services for such children or wards, in providing services qualifying for a credit hereunder.
(3) No such credit shall be allowed to a taxpayer unless the facility or program rendering day care services is licensed by and subject to the regulations of the department of family assistance or the human resources administration governing day care facilities in New York city.
(4) No such credit shall be allowed to a taxpayer if the facility or program rendering day care services admits, during regular school hours, children who are subject to the provisions of the education law with regard to compulsory school attendance.
§ 4. This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2021.
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.