Bill Text: NY A01434 | 2021-2022 | General Assembly | Amended


Bill Title: Provides employers with a tax credit in an amount not to exceed 20% of expenses incurred in providing day care services to the children and wards of its employees and in training persons employed by the taxpayer or a third party provider rendering such services; provides that to receive such credit the facility or program rendering day care services must be licensed.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A01434 Detail]

Download: New_York-2021-A01434-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         1434--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 11, 2021
                                       ___________

        Introduced  by M. of A. MAGNARELLI, COOK, REYES -- Multi-Sponsored by --
          M. of A.  ABBATE, GUNTHER -- read once and referred to  the  Committee
          on  Ways  and  Means -- reported and referred to the Committee on Ways
          and Means -- committee discharged, bill amended, ordered reprinted  as
          amended and recommitted to said committee

        AN  ACT  to  amend the tax law, in relation to providing credits against
          the tax imposed upon employers providing certain day care services  to
          the children of its employees

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

     1    Section 1.  Section 210-B of the tax law is amended by  adding  a  new
     2  subdivision 55 to read as follows:
     3    55. Employer day care credit. (a) A taxpayer shall be allowed a credit
     4  against  the tax imposed by this article to the extent of twenty percent
     5  of the expenses incurred during a taxable year by the taxpayer in making
     6  available day care services to the children and wards of  employees  and
     7  in training persons employed by the taxpayer or by a third party provid-
     8  er  rendering such services. A taxpayer may make such services available
     9  as follows:
    10    (1) pursuant to a written contract with a third party provider;
    11    (2) by reimbursing an employee for expenses incurred by  the  employee
    12  for such services; or
    13    (3) by providing on-site or near-site day care services.
    14    In  no  event shall the amount of such credit exceed the amount of tax
    15  otherwise due pursuant to this article for any taxable year.
    16    (b) (1) No such credit shall be allowed to  a  taxpayer  who  unfairly
    17  discriminates  against  any  employee on the basis of race, creed, reli-
    18  gion, sex, national origin, age, disability, or marital status in making
    19  available day care services.
    20    (2) A taxpayer may give a preference to children or wards of employees
    21  for whom obtaining or maintaining gainful employment is contingent  upon

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01713-03-1

        A. 1434--A                          2

     1  the  availability  of  day  care services for such children or wards, in
     2  providing services qualifying for a credit hereunder.
     3    (c)  No such credit shall be allowed to a taxpayer unless the facility
     4  or program rendering day care services is licensed by and subject to the
     5  regulations  of  the  department  of  family  assistance  or  the  human
     6  resources administration governing day care facilities in New York city.
     7    (d)  No  such credit shall be allowed to a taxpayer if the facility or
     8  program rendering day care services admits, during regular school hours,
     9  children who are subject to the provisions of  the  education  law  with
    10  regard to compulsory school attendance.
    11    §  2.  Section 1511 of the tax law is amended by adding a new subdivi-
    12  sion (ee) to read as follows:
    13    (ee) Employer day care credit. (1) A taxpayer shall be allowed a cred-
    14  it against the tax imposed by this  article  to  the  extent  of  twenty
    15  percent of the expenses incurred during the taxable year by the taxpayer
    16  in  making  available  day  care  services  to the children and wards of
    17  employees and in training persons employed by the taxpayer or by a third
    18  party provider  rendering  such  services.  A  taxpayer  may  make  such
    19  services available as follows:
    20    (A) pursuant to a written contract with a third party provider;
    21    (B)  by  reimbursing an employee for expenses incurred by the employee
    22  for such services; or
    23    (C) by providing on-site or near-site day care services.
    24    In no event shall the amount of such credit exceed the amount  of  tax
    25  otherwise due pursuant to this article for any taxable year.
    26    (2)  (A)  No  such  credit shall be allowed to a taxpayer who unfairly
    27  discriminates against any employee on the basis of  race,  creed,  reli-
    28  gion,  sex, national origin, age, disability or marital status in making
    29  available day care services.
    30    (B) A taxpayer may give a preference to children or wards of day  care
    31  dependent employees for whom obtaining or maintaining gainful employment
    32  is  contingent upon the availability of day care services for such chil-
    33  dren or wards, in providing services qualifying for a credit hereunder.
    34    (3) No such credit shall be allowed to a taxpayer unless the  facility
    35  or program rendering day care services is licensed by and subject to the
    36  regulations  of  the  department  of  family  assistance  or  the  human
    37  resources administration governing day care facilities in New York city.
    38    (4) No such credit shall be allowed to a taxpayer if the  facility  or
    39  program rendering day care services admits, during regular school hours,
    40  children  who  are  subject  to the provisions of the education law with
    41  regard to compulsory school attendance.
    42    § 3. Section 606 of the tax law is amended by adding a new  subsection
    43  (lll) to read as follows:
    44    (lll)  Employer  day  care  credit.  (1) A taxpayer shall be allowed a
    45  credit against the tax imposed by section six hundred one of  this  part
    46  to  the extent of twenty percent of expenses incurred during the taxable
    47  year by the taxpayer in making available day care services to the  chil-
    48  dren  and  wards  of  employees  and in training persons employed by the
    49  taxpayer or by a third party provider rendering such services. A taxpay-
    50  er may make such services available as follows:
    51    (A) pursuant to a written contract with a third party provider;
    52    (B) by reimbursing an employee for expenses incurred by  the  employee
    53  for such services; or
    54    (C) by providing on-site or near-site day care services.
    55    In  no  event shall the amount of such credit exceed the amount of tax
    56  otherwise due pursuant to this article for any taxable year.

        A. 1434--A                          3

     1    (2) (A) No such credit shall be allowed to  a  taxpayer  who  unfairly
     2  discriminates  against  any  employee on the basis of race, creed, reli-
     3  gion, sex, national origin, age, disability or marital status in  making
     4  available day care services.
     5    (B) A taxpayer may give a preference to children or wards of employees
     6  for  whom obtaining or maintaining gainful employment is contingent upon
     7  the availability of day care services for such  children  or  wards,  in
     8  providing services qualifying for a credit hereunder.
     9    (3)  No such credit shall be allowed to a taxpayer unless the facility
    10  or program rendering day care services is licensed by and subject to the
    11  regulations  of  the  department  of  family  assistance  or  the  human
    12  resources administration governing day care facilities in New York city.
    13    (4)  No  such credit shall be allowed to a taxpayer if the facility or
    14  program rendering day care services admits, during regular school hours,
    15  children who are subject to the provisions of  the  education  law  with
    16  regard to compulsory school attendance.
    17    § 4. This act shall take effect immediately and shall apply to taxable
    18  years commencing on and after January 1, 2023.
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