Bill Text: NY A02674 | 2025-2026 | General Assembly | Introduced

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Bill Title: Increases the child and dependent care tax credit to reflect increases in the cost of child and dependent care.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced) 2025-01-21 - referred to ways and means [A02674 Detail]

Download: New_York-2025-A02674-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2674

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                    January 21, 2025
                                       ___________

        Introduced  by M. of A. LUNSFORD, CLARK, GALLAGHER, McMAHON, ZINERMAN --
          read once and referred to the Committee on Ways and Means

        AN ACT to amend the tax law, in relation to  increasing  the  child  and
          dependent care tax credit

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

     1    Section 1. Paragraph 1-b of subsection (c) of section 606 of  the  tax
     2  law,  as added by section 2 of part T of chapter 59 of the laws of 2017,
     3  is amended to read as follows:
     4    (1-b) Notwithstanding anything in this subsection to the  contrary,  a
     5  taxpayer  shall be allowed a credit as provided in this subsection equal
     6  to the applicable percentage of the credit allowable under section twen-
     7  ty-one of the internal revenue code for the same taxable  year  (without
     8  regard  to  whether  the  taxpayer in fact claimed the credit under such
     9  section twenty-one for such taxable year) that would have  been  allowed
    10  absent the application of section 21(c) of such code [for taxpayers with
    11  more than two qualifying individuals], provided however, that the credit
    12  shall  be  calculated  as if the dollar limit on amount creditable shall
    13  not exceed:
    14    (i) seven thousand five hundred dollars if there are three  qualifying
    15  individuals, eight thousand five hundred dollars if there are four qual-
    16  ifying  individuals, and nine thousand dollars if there are five or more
    17  qualifying individuals for taxable years beginning in two thousand twen-
    18  ty-five; and
    19    (ii) six thousand dollars  if  there  is  one  qualifying  individual,
    20  twelve thousand dollars if there are two qualifying individuals, fifteen
    21  thousand  dollars  if  there are three qualifying individuals, seventeen
    22  thousand dollars if there are four qualifying individuals, and  eighteen
    23  thousand  dollars  if  there are five or more qualifying individuals for
    24  taxable years beginning in two thousand twenty-six.
    25    § 2. This act shall take effect immediately.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04247-01-5