Establishes an elder tax credit for taxpayers providing elder care and corporations providing elder care for their employees; defines qualified taxpayer as a single person with an income under 40 thousand dollars or a married couple with a joint income of less than 75 thousand dollars; provides that the elderly person be 65 years of age or older with an income under 13 thousand dollars.
TITLE OF BILL: An act to amend the tax law, in relation to establishing an elder care tax credit
PURPOSE: To provide those taking care of elderly relatives a tax credit and to provide a tax credit to employers providing dependent care during work hours to their employees' elderly relatives.
SUMMARY OF PROVISIONS: Section 1. Adding a new subsection (uu) of section 606 of the tax law to provide a tax credit in the amount of $1,000 to taxpayers caring for elderly dependent relatives within the third degree of consanguinity. The elderly dependent must be sixty-five years of age or older and reside with the taxpayer for twelve months out of the year. The individual receiving the credit must have an income of $40,000 or less and married persons filing jointly must have an income of $75,000 or less. The elderly individual receiving care must have an income of $13,000 or less or $20,400 or less for married elderly dependents.
Section 2. Section 210 of the tax law is amended to provide employers a tax credit equal to twenty-five percent of total expenditures for the provision of elder care services to elder dependents of employees.
JUSTIFICATION: As of 1999, New York continues to lead the nation in per capita spending on Medicaid at $1,352. As the percentage of the elderly population grows, due to the acing baby boom generation, and advances in medical technologies are made, the aging population will increase at an exponential rate. Therefore, it is in the financial interest of the state to develop and promote incentives to encourage cost effective living arrangements.
One living arrangement option for the elderly, would be to reside with a family member who can help provide for their needs. The family is an important means of support for an elderly person, financially, physically and emotionally. The support a family can provide to an aging person could prevent and forestall the senior from needing to reside in a costly residential setting. When a senior does need a nursing home facility, the expense is often picked up by the state in the form of Medicaid because the senior often spends down his/her available funds. The $1,000 credit would act as an incentive to facilitate the transition of the elderly into a family member's home and aid the family for care expenses.
This bill would also provide an incentive to employers to provide dependent care services, during working hours, to their employees who care for elderly dependents by granting a tax credit for expenses paid as a result of such care. The provision of dependent care services would also create a climate in the work place that would attract and retain employees. Persons caring for an elderly relative often experience conflicts between work and attending to the needs of their elderly parent, grandparent, aunt, or uncle. A tax credit would
encourage employers to develop on-site facilities for elder care and/or assist employees in finding appropriate sites for their elder loved one. This would benefit not only the employee and his/her elderly loved one, but also the employer by reducing absenteeism and distraction of the employee while at the job. The twenty-five percent tax credit authorized under this legislation would be applied for the cost of any contract executed by the employer for off-site elder care or, if the employer elects to provide on-site adult day care, for expenses of staffing, learning and recreational materials and equipment, and the construction and maintenance of a facility.
Establishment of an elder care tax credit for family members and for employers would provide needed incentives to encourage increased options for our state's senior population when and if they reach a stage in their life where it is no longer feasible to live entirely independently.
LEGISLATIVE HISTORY: S.2156 of 2009/10; Referred to Investigations & Government Operations S.5468A of 1999/00; Referred to Investigations & Government Operations S.2120 of 2001/02; Referred to Investigations & Government Operations S.1514A of 2003/04; Referred to Investigations & Government Operations S.206 of 2005/06; Referred to Investigations & Government Operations S.1098 of 2007/08; Referred to Senate Investigations & Government Operations
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to the taxable years beginning on or after January 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 192--A 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sens. MAZIARZ, DeFRANCISCO, DIAZ, LANZA, RANZENHOFER, SALAND, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Oper- ations -- recommitted to the Committee on Investigations and Govern- ment 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 establishing an elder 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) ELDER CARE CREDIT. FOR TAXABLE YEARS COMMENCING ON AND AFTER JANUARY ONE, TWO THOUSAND FOURTEEN, A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO ONE THOUSAND DOLLARS. FOR THE PURPOSES OF THIS SUBSECTION A "QUALIFIED TAXPAYER" SHALL MEAN A SINGLE PERSON WITH AN INCOME OF FORTY THOUSAND DOLLARS OR LESS OR MARRIED PERSONS FILING JOINTLY WITH AN INCOME OF SEVENTY-FIVE THOUSAND DOLLARS OR LESS WHO CARES FOR AN ELDERLY DEPENDENT WHO IS SIXTY-FIVE YEARS OF AGE OR OLDER, RELATED TO THE TAXPAYER WITHIN THE THIRD DEGREE OF CONSANGUINITY, WHO RESIDED WITH THE TAXPAYER FOR THE TWELVE MONTHS IMMEDIATELY PRECEDING THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED AND WHOSE INCOME IS THIRTEEN THOUSAND DOLLARS OR LESS FOR A SINGLE ELDERLY DEPENDENT OR TWENTY THOUSAND DOLLARS OR LESS FOR MARRIED ELDERLY DEPENDENTS. S 2. Section 210 of the tax law is amended by adding a new subdivision 14 to read as follows: 14. ELDER CARE CREDIT. (A) THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR ANY TAXABLE YEAR AN AMOUNT EQUAL TOEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01112-02-2 S. 192--A 2
TWENTY-FIVE PERCENT OF THE AMOUNT EXPENDED BY ANY EMPLOYER PROVIDING ELDER CARE FOR EMPLOYEES DURING THE EMPLOYEE'S WORK HOURS. CREDIT SHALL BE APPLIED TO THE COST OF ANY CONTRACT EXECUTED BY THE EMPLOYER FOR OFF-SITE SERVICES TO PROVIDE ELDER CARE; OR, IF THE EMPLOYER ELECTS TO PROVIDE ELDER CARE ON-SITE, TO EXPENSES OF ELDER CARE STAFF, LEARNING AND RECREATIONAL MATERIALS AND EQUIPMENT, AND THE CONSTRUCTION AND MAIN- TENANCE OF A FACILITY. A CREDIT PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION SHALL NOT BE ALLOWED FOR ANY EXPENSES WHICH SERVE AS THE BASIS FOR A PERSONAL INCOME TAX CREDIT PURSUANT TO THE PROVISIONS OF SUBSECTION (UU) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL NOT BE USED BY ANY EMPLOYER OTHER THAN AN ELIGIBLE EMPLOYER WITH AN OFF-SITE OR ON-SITE ENROLLMENT FOR THE TAXABLE YEAR OF NO LESS THAN SIX PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER RECEIVING ELDER CARE. FOR THE PURPOSES OF THIS SUBDIVISION, AN "ELIGIBLE EMPLOYER" SHALL MEAN AN EMPLOYER PROVIDING ELDER CARE IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION WHICH HAS BEEN LICENSED OR CERTIFIED IN ACCORDANCE WITH THE APPROPRIATE PROVISIONS OF THE PUBLIC HEALTH LAW AND SOCIAL SERVICES LAW AND HAS BEEN CERTIFIED BY THE DEPARTMENT OF HEALTH AS ELIGIBLE TO RECEIVE THE CREDIT PURSUANT TO THIS SUBDIVISION. (B) CREDIT MAY BE CARRIED FORWARD FOR THREE SUCCESSIVE YEARS IF THE AMOUNT ALLOWABLE AS CREDIT EXCEEDS INCOME TAX LIABILITY IN A TAXABLE YEAR; HOWEVER, THEREAFTER, IF THE AMOUNT ALLOWABLE AS A CREDIT EXCEEDS THE TAX LIABILITY, THE AMOUNT OF EXCESS SHALL NOT BE REFUNDABLE OR CARRIED FORWARD TO ANY OTHER TAXABLE YEAR. S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxiv) to read as follows: (XXXIV) ELDER CARE CREDIT UNDER AMOUNT OF CREDIT UNDER SUBSECTION (UU) SUBDIVISION FOURTEEN OF SECTION TWO HUNDRED TEN S 4. The commissioner of taxation and finance, the commissioner of health and the commissioner of the office of children and family services shall promulgate any and all rules and regulations and take any other measures necessary to implement this act on its effective date. S 5. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2014.