What's happening
This bill allows tax deductions for expenditures to acquire, construct, renovate, or remodel child care facilities in New York.
Why it matters
Encourages employers to offer on-site or employer-sponsored child care. by providing tax incentives specifically for facilities primarily serving employees’ children, potentially making workplaces more family-friendly and helping with employee retention.
Aims to increase the supply and quality of child care options. by making it financially easier for both for-profit operators and employers to create, upgrade, or expand child care facilities, which could help address shortages in many communities.
Provides accelerated tax benefits compared to standard depreciation. by allowing deductions over 24 or 60 months (depending on who the facility primarily serves), instead of spreading costs over much longer periods under federal tax rules—making the financial advantage more immediate and substantial.
Limits double-dipping on tax benefits. by specifying that these new deductions replace other depreciation allowances, ensuring the incentives are targeted and not duplicative, which may also simplify tax planning for eligible businesses.
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Who cares
Headline styles
Offer Tax Breaks for Childcare
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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.
Tax Breaks for Child Care
In Assembly Committee · Ways And Means · Sponsor Philip Ramos
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8202
IN SENATE
April 15, 2020
Introduced by Sen. PARKER -- 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 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.
(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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07464-01-9
S. 8202 2
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.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
Creates tax deductions for creation or improvements of childcare facili- ties.
Summary of specific provisions
Adds a new Section 188-a to the tax law to authorize a deduction from taxable income for any expenditures made to create or improve child care facilities. Adds new paragraphs (u) and (v) to section 208 of the tax law, and a new paragraphs (17) and (18) to section 612 of the tax law to deem eligible for deductions those taxpayers who operate a childcare facility for profit, or primarily for the children of the taxpayer's employees.
Justification
These tax deductions are an incentive to employers and childcare provid- ers to assist in meeting the demand for childcare in New York.
Legislative history
New Bill
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.