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Tax Credit for Employer Daycare
In Assembly Committee · Ways And Means · Sponsor William Magnarelli
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5154
2019-2020 Regular Sessions
IN SENATE
April 11, 2019
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
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
S. 5154 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-
S. 5154 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.
Sponsor's memo
Title of bill
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
Purpose of the bill
To provide tax incentives for the establishment of child care services.
Summary of specific provisions
This legislation creates a tax incentive-program for employer-supported day care services for the preschool and primary school-age children of its employees.
Section 1 amends Section 210 of the Tax Law by adding a new subdivision 52 by adding employer day care credit.
Section 2 amends Section 1511 of the Tax Law by adding a new subdivision (dd) by adding employer day care credit.
Section 3 amends Section 606 of the Tax Law by adding a new subsection
(ccc) by adding employer day care credit.
Section 4 establishes the effective date.
Justification
These changes in the tax law establish a twenty percent tax credit program for employers who provide certain day care services to their employees. The tax credit will be provided for day care services for preschool and primary school-age children, including:
1. Employer contracts with third party day care providers;
2. Employer provision of direct reimbursement to employees for child care expenses;
3. Operational costs of employer provided on-site or near site day care services; or
4. Expenditures incurred for the training of employees of third party providers who render day care services to their employees.
In order to meet the guidelines of this tax program, all of the day care services utilized must meet the governing standards of the State Depart- ment of Social Services and the Human Resources Administration for New York City. In addition, this bill provides that no credit will be given to employers who discriminate against their employees on the basis of race, creed, religion, sex, or national origin, as a determining factor in making day care services for their employees, which will undoubtedly encourage individuals to enter the work-force.
These aforementioned propensities will subsequently contribute to the enhancement of the New York State economy.
Prior legislative history
2017-2018: S.1805
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2021.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.