Establishes a child care tax credit; applicable to child care expenses for children under thirteen years of age or who are disabled.
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, 2012.
STATE OF NEW YORK ________________________________________________________________________ 4087 2011-2012 Regular Sessions IN SENATE March 17, 2011 ___________Introduced by Sen. ADDABBO -- 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 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 (ss) to read as follows: (SS) 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, 2012.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03106-01-1