Establishes a child care tax credit; applicable to child care expenses for children under thirteen years of age or who are disabled.

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S4087A-2011 Actions

• Jan 9, 2012: PRINT NUMBER 4087A
• Jan 9, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Mar 17, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S4087A-2011 Memo

BILL NUMBER:S4087A

TITLE OF BILL:
An act
to amend the tax law, in relation to a child care tax credit

PURPOSE:
Establishes a child care tax credit for the purposes of alleviating
child care expenses that coexist with raising a child or children.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends section 606 of the tax law by adding a new subsection.

Section 2: Specifies effective date.

JUSTIFICATION:
This is essential in assisting low income or under-employed families
that pay for child care. The child care credit will allow for parents
or guardians to claim up to twenty-five percent of the expenses paid
toward caring for their child up to nineteen years of age. Having
this credit will allow those parents or guardians to continue in or
seek gainful employment, and to have the additional option to attend
school on either a part-time or full-time basis due to the financial
incentives gained from the proposed child care credit.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Shall take effect on or after January 1, 2013.

S4087A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   4087--A

                         2011-2012 Regular Sessions

                              I N  SENATE

                               March 17, 2011
                                 ___________

  Introduced  by Sens. ADDABBO, ESPAILLAT -- read twice and ordered print-
    ed, and when printed to be committed  to  the  Committee  on  Investi-
    gations  and  Government Operations -- recommitted to the Committee on
    Investigations and Government Operations  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 a child care tax credit

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  Section  606  of  the  tax law is amended by adding a new
  subsection (uu) to read as follows:

    (UU) CHILD CARE CREDIT. (1) ALLOWANCE OF CREDIT. A  RESIDENT  TAXPAYER
  SHALL  BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE FOR
  CHILD CARE EXPENSES.
    (2) CHILD CARE. CHILD CARE MEANS CARE PROVIDED TO A  QUALIFYING  CHILD
  OF THE TAXPAYER FOR THE PURPOSES OF ALLOWING THE TAXPAYER TO BE GAINFUL-
  LY  EMPLOYED,  TO  SEEK EMPLOYMENT OR TO ATTEND SCHOOL ON A FULL-TIME OR
  PART-TIME BASIS, EXCEPT THAT THE TERM DOES NOT INCLUDE CARE PROVIDED BY:

    (A) THE CHILD'S PARENT OR GUARDIAN, UNLESS THE CARE IS PROVIDED BY THE
  PARENT IN A CERTIFIED OR REGISTERED CHILD CARE FACILITY; OR  THE  PARENT
  OR GUARDIAN IS PHYSICALLY INCAPABLE OF CARING FOR THE CHILD; OR
    (B)  A  CHILD  OF  THE  TAXPAYER WHO HAS NOT YET ATTAINED AGE NINETEEN
  YEARS OF AGE AT THE CLOSE OF THE TAX YEAR.
    (3) CHILD CARE EXPENSES. CHILD CARE EXPENSES MEANS THE  COSTS  ASSOCI-
  ATED  WITH  PROVIDING  CHILD  CARE  TO  A QUALIFYING CHILD OF A RESIDENT
  TAXPAYER.
    (4) QUALIFYING CHILD. QUALIFYING CHILD MEANS A CHILD OF  THE  TAXPAYER
  WHO IS UNDER THIRTEEN YEARS OF AGE, OR WHO IS A DISABLED CHILD.
    (5)  AMOUNT  OF  CREDIT. A RESIDENT TAXPAYER SHALL BE ALLOWED A CREDIT
  AGAINST THE TAX IMPOSED BY THIS ARTICLE OF TWENTY-FIVE  PERCENT  OF  THE
  EXPENSES OF CHILD CARE.
    S 2. This act shall take effect immediately and shall apply to taxable
  years commencing on or after January 1, 2013.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD03106-02-2