What's happening
This bill increases the maximum child and dependent care tax credit amounts for New York taxpayers with multiple qualifying individuals.
Why it matters
Raises the maximum eligible expenses for the child and dependent care tax credit, especially benefiting families with multiple dependents. This means larger families can claim significantly more expenses, potentially leading to a much higher tax credit.
Updates the credit amounts for different tax years and number of qualifying individuals, providing clear step-ups for each additional dependent. For example, starting in 2020, families with two dependents can claim up to $12,000 in eligible expenses, while those with five or more can claim up to $18,000.
Aligns New York's tax credit framework more closely with federal standards but allows for higher expense limits, helping to offset the real (and rising) costs of child and dependent care. This could make child care more affordable and accessible for working families, particularly those with several children or dependents.
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Who cares
Taxpayers with one or two qualifying dependents
For tax years beginning in 2020, the bill would extend the special state credit calculation to them, using expense limits of $6,000 for one qualifying individual and $12,000 for two.
Taxpayers with three or more qualifying dependents
For tax years beginning in 2020, the bill would double the expense limits used to calculate their credit to $15,000 for three qualifying individuals, $17,000 for four and $18,000 for five or more.
New York State Department of Taxation and Finance
The agency would need to administer the revised child and dependent care credit calculation and its tax-year-specific expense limits.
Headline styles
Increase Child Care Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Print number 4458a
- Amend and recommit to budget and revenue
- Referred to budget and revenue
- Referred to budget and revenue
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.
Increase Child Care Tax Credit
In Assembly Committee · Ways And Means · Sponsor Ellen C. Jaffee
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4458--A
2019-2020 Regular Sessions
IN SENATE
March 12, 2019
Introduced by Sens. RANZENHOFER, CARLUCCI, FELDER, KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- recommitted to the Committee on Budget and Revenue in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to increasing the child and dependent care tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (1-b) of subsection (c) of section 606 of the tax law, as added by section 2 of part T of chapter 59 of the laws of 2017, is amended to read as follows:
(1-b) Notwithstanding anything in this subsection to the contrary, a taxpayer shall be allowed a credit as provided in this subsection equal to the applicable percentage of the credit allowable under section twenty-one 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) that would have been allowed absent the application of section 21(c) of such code [for taxpayers with more than two qualifying individuals], provided however, that the credit shall be calculated as if the dollar limit on amount creditable shall not exceed:
(i) seven thousand five hundred dollars if there are three qualifying individuals, eight thousand five hundred dollars if there are four qualifying individuals, and nine thousand dollars if there are five or more qualifying individuals for taxable years beginning in two thousand nineteen; and
(ii) six thousand dollars if there is one qualifying individual, twelve thousand dollars if there are two qualifying individuals, fifteen thousand dollars if there are three qualifying individuals, seventeen
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02782-03-0
S. 4458--A 2
thousand dollars if there are four qualifying individuals, and eighteen thousand dollars if there are five or more qualifying individuals for taxable years beginning in two thousand twenty.
§ 2. This act shall take effect immediately.
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 increasing the child and dependent care tax credit
Purpose
To increase the child and dependent care tax credit to reflect increases in the cost of child and dependent care.
Summary of provisions
Section 1 - amends paragraph (1-b) of subsection (c) of section 606 of the Tax Law to increase the maximum amount of child and dependent care costs that are subject to the child and dependent care tax credit commencing with tax year 2020.
Section 2 - Effective date.
Justification
Families with children or dependents who need care face the costs of paying for this care to preserve their jobs. However, these families are facing increased costs for these services. Families who have seen increases this year are already being warned that these increases will continue as providers face increased costs. Many families already find it difficult to cover current costs and may be faced with the quandary of whether it makes better economic sense in the short term for one parent to abandon his or her career to stay home to care for children or other dependents. This bill reflects the increasing costs of child and dependent care to bring the state tax credit in line with these cost increases.
Legislative history
2018 - S.7815/A.10265 - PASSED SENATE/Ways & Means
Fiscal implications
To be determined. Child and dependent care credits were approximately $183 million in 2014, and the increases passed in the SFY 2017-18 Budget were estimated to save families an additional $47 million. Based upon those figures, families would save an additional $230 million in 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.