Provides employers with a tax credit for expenditures to provide dependent care to adult dependents of employees of eligible expenditures for adults 60 or over or otherwise eligible; applies to corporate and noncorporate employers; also provides such a credit for employees or other taxpayers, to the extent not covered by the employer.

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S2263-2013 Actions

• Jan 15, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2263-2013 Memo

BILL NUMBER:S2263

TITLE OF BILL:  An act to amend the tax law, in relation to
establishing business franchise and personal income tax credits for
employers which provide care for the elderly dependents of their
employees during work hours and establishing a personal income tax
credit for the provision of care to the elderly dependent of a
taxpayer during work hours

PURPOSE OR GENERAL IDEA OF BILL:  Provides employers with a tax credit
for care to adult dependents of employees and expenditures to provide
dependent employees with a similar credit.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends Tax Law section 210 to add a new subdivision 46 that
creates a income tax credit of up to $1000 per adult care recipient to
any employer who provides or pays for adult dependent care for the
adult dependents of its employees during business hours.

Section 2: Amends Tax Law section 606 to add a new subsection (vv) to
allow a taxpayer credit against the tax. imposed in an amount not in
excess of $1000 for each adult day care recipient, which care must be
provided in an eligible facility.

Section 3 and 4: The commissioners of taxation and finance and
children and family services shall promulgate any and all rules and
regulations and take any other measure necessary to implement this act
on its effective date.

JUSTIFICATION:  An increasing number of New Yorkers are relying on
adult care services to provide care for their adult dependents while
they work outside the home. These services will become even more
common as the number of senior citizens in New York continues to grow
over the next several years. Just as child day care services have
become an essential element of our state economy and help millions of
New Yorkers to balance the needs of career and family, adult care
services provide an equally important service to the growing
population of New Yorkers who balance careers with caring for elderly
or disabled relatives. This tax credit would help ease the financial
burdens on caregivers and help ensure that dependent senior citizens
receive the quality care and services they need. It would also
encourage employers to offer adult care services to their employees.

PRIOR LEGISLATIVE HISTORY:  2005-06: A.2781 Ways & Means 2007-06:
A.5136 Ways & Means 2009-10: S.6222 Investigations & Government
Operations 2011-12: S. 613 Investigations & Government Operations

EFFECTIVE DATE:  This act shall take effect on the 1st of January next
succeeding the date on which it shall have become a law and shall
apply to taxable years commencing on and after such effective date;
provided, however, that effective immediately, the commissioners of
taxation and finance, and children and family services are authorized
and directed to promulgate any rules and regulations and take any
other measures necessary to implement the provisions of this act on
its effective date.

S2263-2013 Text

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

                                    2263

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 15, 2013
                                 ___________

  Introduced  by  Sens.  KLEIN, MAZIARZ -- read twice and ordered printed,
    and when printed to be committed to the  Committee  on  Investigations
    and Government Operations

  AN  ACT to amend the tax law, in relation to establishing business fran-
    chise and personal income tax credits for employers which provide care
    for the elderly dependents of their employees during  work  hours  and
    establishing a personal income tax credit for the provision of care to
    the elderly dependent of a taxpayer during work hours

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


    Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
  subdivision 46 to read as follows:

    46.  EMPLOYEE ELDERLY DEPENDENT CARE CREDIT.  (A) ALLOWANCE OF CREDIT.
  THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
  CLE FOR THE AMOUNT, NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH EMPLOYEE
  DEPENDENT FOR WHICH ADULT  DAY  CARE  SERVICES  ARE  PROVIDED,  ACTUALLY
  EXPENDED  BY THE TAXPAYER PROVIDING OR PAYING ANOTHER TO PROVIDE DEPEND-
  ENT CARE FOR THE TAXPAYER'S EMPLOYEES' DEPENDENTS DURING THE  EMPLOYEES'
  WORK  HOURS,  WHICH  CARE  MUST  BE PROVIDED IN AN ELIGIBLE FACILITY, AS
  DESCRIBED IN PARAGRAPH (C) OF THIS SUBDIVISION.   CREDIT IS  APPLIED  TO
  THE  COST  OF ANY CONTRACT EXECUTED BY THE TAXPAYER FOR ANOTHER PROVIDER
  OF SERVICES TO PROVIDE DEPENDENT CARE; OR, IF  THE  TAXPAYER  ELECTS  TO
  PROVIDE DEPENDENT CARE ITSELF, TO EXPENSES INCURRED FOR:  DEPENDENT CARE
  STAFF,  LEARNING  AND  RECREATIONAL  MATERIALS  AND  EQUIPMENT,  AND THE
  CONSTRUCTION AND MAINTENANCE OF A FACILITY.   THIS COST IS  NET  OF  ANY
  REIMBURSEMENT.  THE  CREDIT  SHALL NOT BE ALLOWED FOR ANY EXPENSES WHICH
  ARE PAID BY AN EMPLOYEE AND SERVE AS THE BASIS FOR A PERSONAL INCOME TAX
  CREDIT. THE CREDITS ALLOWED UNDER THIS SUBDIVISION SHALL NOT BE USED  BY
  ANY  CORPORATION  OTHER THAN THE CORPORATION ACTUALLY QUALIFYING FOR THE
  CREDITS.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD06015-01-3

 S. 2263                             2

    (B) CARRYOVER.  CREDIT MAY BE CARRIED FORWARD FOR THE FIVE  SUCCESSIVE
  YEARS  IF THE AMOUNT ALLOWABLE AS CREDIT EXCEEDS INCOME TAX LIABILITY IN
  A TAX 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.
    (C) ELIGIBLE FACILITY. AN ELIGIBLE FACILITY MUST HAVE AN AVERAGE DAILY
  ENROLLMENT  FOR THE TAXABLE YEAR OF NO LESS THAN SIX PERSONS SIXTY YEARS
  OF AGE OR OLDER AND BE LICENSED OR CERTIFIED ACCORDING TO THE APPLICABLE
  LAW OR REGULATIONS; OR MUST SERVE FIVE OR FEWER  PERSONS  AGE  SIXTY  OR
  OLDER  IN  A FAMILY CHILD CARE/ELDER CARE HOME APPROVED BY THE OFFICE OF
  CHILDREN AND FAMILY SERVICES FOR  PARTICIPATION  IN  THE  UNITED  STATES
  DEPARTMENT  OF  AGRICULTURE  CHILD  AND ADULT NUTRITION PROGRAM; OR MUST
  SERVE ADULT RELATIVES OF EMPLOYEES IN  EITHER  A  COMMUNITY-BASED  ELDER
  CARE  FACILITY OR A FACILITY AT THE EMPLOYMENT SITE; OR MUST SERVE ADULT
  DEPENDENTS HAVING PHYSICAL, EMOTIONAL, OR MENTAL DISABILITIES IN  EITHER
  A COMMUNITY-BASED FACILITY OR A FACILITY AT THE EMPLOYMENT SITE.
    (D)  CERTIFICATION. TAXPAYERS   SHALL BE CERTIFIED AS ELIGIBLE FOR THE
  TAX CREDIT BY THE OFFICE OF CHILDREN AND FAMILY  SERVICES  FOR  PROGRAMS
  SERVING  ELDERLY  ADULTS  AND  BY  THE COMMISSIONER FOR PROGRAMS SERVING
  OTHER ADULT DEPENDENTS.
    (E) ADDITIONAL CREDIT.  IN ADDITION TO THE CREDIT ALLOWED PURSUANT  TO
  PARAGRAPH  (A) OF THIS SUBDIVISION, THERE SHALL BE ALLOWED AN ADDITIONAL
  CREDIT, SUBJECT TO THE PROVISIONS OF PARAGRAPH (B) OF THIS  SUBDIVISION,
  FOR  ADDITIONAL  ELIGIBLE  EXPENSES  ASSUMED OR INCURRED BY THE EMPLOYER
  WHICH INCREASE THE QUALITY, AVAILABILITY, AND AFFORDABILITY OF DEPENDENT
  CARE IN THE COMMUNITY USED  BY  EMPLOYEES  DURING  THE  EMPLOYEES'  WORK
  HOURS.  THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS DEFINING
  THE  ELIGIBILITY  OF  EXPENSES  AND  THE  AMOUNT OF THE CREDIT ALLOWABLE
  THEREFOR. THE COMMISSIONER SHALL FURTHER PROVIDE  AN  ADDITIONAL  CREDIT
  FOR  ADMINISTRATIVE  COSTS  INCURRED  IN  COMPLYING  WITH  THE FOREGOING
  PROVISIONS.
    S 2. Section 606 of the tax law is amended by adding a new  subsection
  (vv) to read as follows:

    (VV)  DEPENDENT  ELDERLY  CARE  CREDIT. (1) EMPLOYER. (A) ALLOWANCE OF
  CREDIT.  A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
  THIS ARTICLE FOR THE AMOUNT, NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH
  EMPLOYEE DEPENDENT FOR WHICH ADULT DAY CARE SERVICES ARE PROVIDED, ACTU-
  ALLY EXPENDED BY THE TAXPAYER PROVIDING OR  PAYING  ANOTHER  TO  PROVIDE
  DEPENDENT  CARE  FOR  THE  TAXPAYER'S  EMPLOYEES'  DEPENDENTS DURING THE
  EMPLOYEES' WORK HOURS, WHICH CARE MUST BE PROVIDED IN AN ELIGIBLE FACIL-
  ITY, AS DESCRIBED IN SUBPARAGRAPH (C) OF  THIS  PARAGRAPH.    CREDIT  IS
  APPLIED TO THE COST OF ANY CONTRACT EXECUTED BY THE TAXPAYER FOR ANOTHER
  ENTITY  TO PROVIDE DEPENDENT CARE; OR, IF THE TAXPAYER ELECTS TO PROVIDE
  DEPENDENT CARE ITSELF, TO EXPENSES INCURRED FOR:  DEPENDENT CARE  STAFF,
  LEARNING  AND RECREATIONAL MATERIALS AND EQUIPMENT, AND THE CONSTRUCTION
  AND MAINTENANCE OF A FACILITY.  THIS COST IS NET OF  ANY  REIMBURSEMENT.
  THE  CREDIT  SHALL  NOT  BE  ALLOWED  FOR ANY EXPENSES WHICH ARE PAID BY
  EMPLOYEES AND SERVE AS THE BASIS FOR A PERSONAL INCOME TAX  CREDIT.  THE
  CREDITS  ALLOWED  UNDER THIS PARAGRAPH SHALL NOT BE USED BY ANY EMPLOYER
  OTHER THAN THE EMPLOYER ACTUALLY QUALIFYING FOR THE CREDITS.
    (B) CARRYOVER.  CREDIT MAY BE CARRIED FORWARD FOR THE FIVE  SUCCESSIVE
  YEARS  IF THE AMOUNT ALLOWABLE AS CREDIT EXCEEDS INCOME TAX LIABILITY IN
  A TAX 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. 2263                             3

    (C) ELIGIBLE FACILITY.   AN ELIGIBLE FACILITY  MUST  HAVE  AN  AVERAGE
  DAILY  ENROLLMENT FOR THE TAXABLE YEAR OF NO LESS THAN SIX PERSONS SIXTY
  YEARS OF AGE OR OLDER AND BE LICENSED  OR  CERTIFIED  ACCORDING  TO  THE
  APPLICABLE  LAW  OR REGULATIONS; OR MUST SERVE FIVE OR FEWER PERSONS AGE
  SIXTY  OR  OLDER  IN A FAMILY CHILD CARE/ELDER CARE HOME APPROVED BY THE
  OFFICE OF CHILDREN AND FAMILY SERVICES FOR PARTICIPATION IN  THE  UNITED
  STATES  DEPARTMENT  OF AGRICULTURE CHILD AND ADULT NUTRITION PROGRAM; OR
  MUST SERVE ADULT RELATIVES OF  EMPLOYEES  IN  EITHER  A  COMMUNITY-BASED
  ELDER  CARE FACILITY OR A FACILITY AT THE EMPLOYMENT SITE; OR MUST SERVE
  ADULT DEPENDENTS HAVING PHYSICAL, EMOTIONAL, OR MENTAL  DISABILITIES  IN
  EITHER A COMMUNITY-BASED FACILITY OR A FACILITY AT THE EMPLOYMENT SITE.
    (D)  CERTIFICATION.   TAXPAYERS SHALL BE CERTIFIED AS ELIGIBLE FOR THE
  TAX CREDIT BY THE OFFICE OF CHILDREN AND FAMILY  SERVICES  FOR  PROGRAMS
  SERVING  ELDERLY  ADULTS  AND  BY  THE COMMISSIONER FOR PROGRAMS SERVING
  OTHER ADULT DEPENDENTS.
    (E) ADDITIONAL CREDIT.  IN ADDITION TO THE CREDIT ALLOWED PURSUANT  TO
  SUBPARAGRAPH (A) OF THIS PARAGRAPH, THERE SHALL BE ALLOWED AN ADDITIONAL
  CREDIT, SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (B) OF THIS PARAGRAPH,
  FOR  ADDITIONAL  ELIGIBLE  EXPENSES  ASSUMED OR INCURRED BY THE EMPLOYER
  WHICH INCREASE THE QUALITY, AVAILABILITY, AND AFFORDABILITY OF DEPENDENT
  CARE IN THE COMMUNITY USED  BY  EMPLOYEES  DURING  THE  EMPLOYEES'  WORK
  HOURS.  THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS DEFINING
  THE  ELIGIBILITY  OF  EXPENSES  AND  THE  AMOUNT OF THE CREDIT ALLOWABLE
  THEREFOR.  THE COMMISSIONER SHALL FURTHER PROVIDE AN  ADDITIONAL  CREDIT
  FOR  ADMINISTRATIVE  COSTS  INCURRED  IN  COMPLYING  WITH  THE FOREGOING
  PROVISIONS.
    (2) INDIVIDUAL.  (A) ALLOWANCE OF CREDIT.  A TAXPAYER SHALL BE ALLOWED
  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE AMOUNT, NOT  TO
  EXCEED  ONE  THOUSAND DOLLARS FOR EACH ELDERLY DEPENDENT OF THE TAXPAYER
  FOR WHICH ADULT DAY CARE SERVICES ARE PROVIDED, ACTUALLY EXPENDED BY THE
  TAXPAYER AS PAYMENT TO AN ELIGIBLE FACILITY FOR PROVIDING DEPENDENT CARE
  DURING THE TAXPAYER'S WORK HOURS, WHICH CARE  MUST  BE  PROVIDED  IN  AN
  ELIGIBLE  FACILITY,  AS DESCRIBED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH.
  THIS COST IS NET OF ANY REIMBURSEMENT. THE CREDIT SHALL NOT  BE  ALLOWED
  FOR ANY EXPENSES WHICH ARE PAID BY AN EMPLOYER OF THE TAXPAYER AND SERVE
  AS  THE  BASIS  FOR A TAX CREDIT FOR SUCH EMPLOYER.  THE CREDITS ALLOWED
  UNDER THIS PARAGRAPH SHALL NOT BE USED BY ANY TAXPAYER  OTHER  THAN  THE
  TAXPAYER ACTUALLY QUALIFYING FOR THE CREDITS.
    (B)  CARRYOVER.  CREDIT MAY BE CARRIED FORWARD FOR THE FIVE SUCCESSIVE
  YEARS IF THE AMOUNT ALLOWABLE AS CREDIT EXCEEDS INCOME TAX LIABILITY  IN
  A  TAX  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.
    (C)  ELIGIBLE  FACILITY.    AN  ELIGIBLE FACILITY MUST HAVE AN AVERAGE
  DAILY ENROLLMENT FOR THE TAXABLE YEAR OF NO LESS THAN SIX PERSONS  SIXTY
  YEARS  OF  AGE  OR  OLDER  AND BE LICENSED OR CERTIFIED ACCORDING TO THE
  APPLICABLE LAW OR REGULATIONS; OR MUST SERVE FIVE OR FEWER  PERSONS  AGE
  SIXTY  OR  OLDER  IN A FAMILY CHILD CARE/ELDER CARE HOME APPROVED BY THE
  OFFICE OF CHILDREN AND FAMILY SERVICES FOR PARTICIPATION IN  THE  UNITED
  STATES  DEPARTMENT  OF AGRICULTURE CHILD AND ADULT NUTRITION PROGRAM; OR
  MUST SERVE ADULT RELATIVES OF  EMPLOYEES  IN  EITHER  A  COMMUNITY-BASED
  ELDER  CARE FACILITY OR A FACILITY AT THE EMPLOYMENT SITE; OR MUST SERVE
  ADULT DEPENDENTS HAVING PHYSICAL, EMOTIONAL, OR MENTAL  DISABILITIES  IN
  EITHER A COMMUNITY-BASED FACILITY OR A FACILITY AT THE EMPLOYMENT SITE.

 S. 2263                             4

    S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
  of the tax law is amended by adding a  new  clause  (xxxv)  to  read  as
  follows:


  (XXXV) DEPENDENT ELDERLY CARE        AMOUNT OF CREDIT FOR
  CREDIT UNDER PARAGRAPH ONE OF        EMPLOYEE ELDERLY DEPENDENT CARE
  SUBSECTION (VV)                      UNDER SUBDIVISION FORTY-SIX
                                       OF SECTION TWO HUNDRED TEN

    S  4. This act shall take effect on the first of January next succeed-
  ing the date on which it shall have become a  law  and  shall  apply  to
  taxable  years  commencing  on  and after such effective date; provided,
  however, that, effective immediately, the commissioners of taxation  and
  finance, and children and family services are authorized and directed to
  promulgate any rules and regulations, and take any other measures neces-
  sary to implement the provisions of this act on its effective date.