What's happening
This bill allows tax deductions for expenditures related to acquiring, constructing, renovating, or remodeling child care facilities in New York.
Why it matters
Encourages employers to provide on-site or near-site child care. by making it financially advantageous for businesses to invest in facilities primarily serving their employees’ children, potentially expanding access to convenient child care options for working parents.
Distinguishes between for-profit child care providers and employer-sponsored care. , offering a faster (24 months) deduction period for facilities serving employees’ children, versus a longer (60 months) period for general for-profit child care businesses—potentially incentivizing employer-based solutions.
Streamlines and accelerates tax benefits compared to existing depreciation rules. , allowing qualifying expenditures to be deducted more quickly and in larger chunks, which can improve cash flow for businesses making substantial child care-related investments.
Eliminates double benefits by replacing other depreciation allowances. (such as federal depreciation or obsolescence deductions) with this specific deduction, clarifying the tax treatment and simplifying record-keeping for eligible expenses.
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Who cares
Headline styles
Tax Breaks for Child Care
Plain English, a few words. Used as the page title.
Sponsors
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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.
Offer Tax Breaks for Childcare
In Senate Committee · Budget And Revenue · Sponsor Kevin S. Parker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5227
2019-2020 Regular Sessions
IN ASSEMBLY
February 7, 2019
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.
LBD07464-01-9
A. 5227 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.