New York S 1143: Provides affordable and accessible dependent care options for working families

Bill Text

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S01143 Summary:

BILL NOS01143 

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SAME ASSAME AS A00598

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SPONSORGOUNARDES

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COSPNSR

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MLTSPNSR

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Amd §44, Tax L

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Provides affordable and accessible dependent care options for working families by including qualified in-home and backup care expenditures paid or incurred with respect to the taxpayer's employees working in the state in the employer- provided child care credit criteria; makes technical corrections to make such credit independent of the federal employer-provided child care credit.

Go to top S01143 Actions:

BILL NOS01143 

&nbsp

01/08/2025REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

01/07/2026REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Go to topS01143 Committee&nbspVotes:

Go to topS01143 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS01143 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1143

 2025-2026 Regular Sessions

 IN SENATE

 January 8, 2025
 ___________

 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern-
 ment Operations

 AN ACT to amend the tax law, in relation to employer-provided child care
 credits

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Section 44 of the tax law, as added by section 1 of part L
 2 of chapter 59 of the laws of 2019 and subdivision (a) as amended by
 3 section 5 of part D of chapter 59 of the laws of 2021, is amended to
 4 read as follows:
 5 § 44. Employer-provided child care credit. (a) General. A taxpayer
 6 subject to tax under article nine-A, twenty-two, or thirty-three of this
 7 chapter shall be allowed a credit against such tax in an amount equal to
 8 [two hundred percent of the portion of the credit that is allowed to the
 9 taxpayer under section 45F of the internal revenue code] the sum of
 10 fifty percent of the qualified child care expenditures and twenty
 11 percent of the qualified child care resource and referral expenditures
 12 for the taxpayer for such taxable year, that is attributable to (i)
 13 qualified child care expenditures paid or incurred with respect to a
 14 qualified child care facility with a situs in the state, [and to] (ii)
 15 qualified child care resource and referral expenditures paid or incurred
 16 with respect to the taxpayer's employees working in the state, (iii)
 17 qualified in-home care expenditures paid or incurred with respect to the
 18 taxpayer's employees working in the state, and (iv) qualified backup
 19 care expenditures paid or incurred with respect to the taxpayer's
 20 employees working in the state. The credit allowable under this subdivi-
 21 sion for any taxable year shall not exceed five hundred thousand
 22 dollars. If the entity operating the qualified child care facility is a
 23 partnership or a New York S corporation, then such cap shall be applied
 24 at the entity level, so the aggregate credit allowed to all the partners

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01352-01-5

 S. 1143 2

 1 or shareholders of such entity in a taxable year does not exceed five
 2 hundred thousand dollars.
 3 (b) Credit recapture. (i) If there is a cessation of operation or
 4 change in ownership[, as defined by section 45F of the internal revenue
 5 code] relating to a qualified child care facility with a situs in the
 6 state, the taxpayer shall add back the applicable recapture percentage
 7 of the credit allowed under this section, in accordance with the recap-
 8 ture provisions of [section 45F of the internal revenue code, but the
 9 recapture amount shall be limited to the credit allowed under this
 10 section] this subdivision.
 11 (ii) If, as of the close of any taxable year, there is a recapture
 12 event with respect to any qualified child care facility of the taxpayer,
 13 then the tax of the taxpayer under this chapter for such taxable year
 14 shall be increased by an amount equal to the product of:
 15 (A) the applicable recapture percentage; and
 16 (B) the aggregate decrease in the credits allowed under section 38 of
 17 the internal revenue code for all prior taxa