Bill Text: NY A09264 | 2023-2024 | General Assembly | Introduced


Bill Title: Establishes a child care program capital improvement tax credit program for child care programs to provide financial assistance to New York's child care providers to facilitate the enhancement, expansion, and improvement of access to quality child care.

Spectrum: Partisan Bill (Republican 32-0)

Status: (Introduced) 2024-02-22 - referred to ways and means [A09264 Detail]

Download: New_York-2023-A09264-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9264

                   IN ASSEMBLY

                                    February 22, 2024
                                       ___________

        Introduced  by M. of A. RA, JENSEN, GANDOLFO, MAHER, SLATER -- read once
          and referred to the Committee on Ways and Means

        AN ACT to amend the social services and the  tax  law,  in  relation  to
          establishing  the  child  care  program capital improvement tax credit
          program

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

     1    Section 1. Article 6 of the social services law is amended by adding a
     2  new title 13 to read as follows:

     3                                  TITLE 13
     4          CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT PROGRAM
     5  Section 458-p. Short title.
     6          458-q. Statement of legislative findings and declaration.
     7          458-r. Definitions.
     8          458-s. Eligibility criteria.
     9          458-t. Application and approval process.
    10          458-u. Child care program capital improvement tax credit.
    11          458-v. Powers and duties of the commissioner.
    12          458-w. Maintenance of records.
    13          458-x. Reporting.
    14          458-y. Cap on tax credit.
    15    §  458-p.  Short  title. This title shall be known and may be cited as
    16  the "child care program capital improvement tax credit program act".
    17    § 458-q. Statement of legislative  findings  and  declaration.  It  is
    18  hereby  found  and  declared  that  New York state needs, as a matter of
    19  public policy, to support increased access to quality child care for New
    20  York families. The child care program  capital  improvement  tax  credit
    21  program  is  created to provide financial assistance to New York's child
    22  care providers to facilitate the enhancement, expansion, and improvement
    23  of access to quality child care.
    24    § 458-r. Definitions. For the purposes of this title:
    25    1. "Certificate of tax credit" shall mean the  document  issued  to  a
    26  business  entity  by  the  office after the office has verified that the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13858-01-3

        A. 9264                             2

     1  business entity has met all  applicable  eligibility  criteria  in  this
     2  title.  The certificate shall specify the exact amount of the tax credit
     3  under this title that a business entity may claim, pursuant  to  section
     4  four hundred fifty-eight-u of this title.
     5    2.  "Commissioner"  shall mean the commissioner of the office of chil-
     6  dren and family services.
     7    3. "Office" shall mean the office of children and family services.
     8    4. "Qualified child care  program  capital  costs"  shall  mean  costs
     9  incurred  from  the improvement, expansion, enhancement, or to generally
    10  increase the safety of child care programs,  including  costs  for:  (i)
    11  materials  required  for  expansion projects; (ii) building construction
    12  and retrofits; (iii) installation of air purifying equipment;  and  (iv)
    13  other costs as determined by the office to be eligible under this title.
    14    §  458-s.  Eligibility  criteria.  1.  To be eligible for a tax credit
    15  under the child care capital improvement tax credit program, a  business
    16  entity shall:
    17    (a)  be  a  child  care program for which a license or registration to
    18  operate such program has been issued by the office pursuant  to  section
    19  three hundred ninety of this article; and
    20    (b)  have  at  least  two  thousand  dollars  in qualifying child care
    21  program improvement capital costs.
    22    2. A child care program shall be in substantial  compliance  with  any
    23  public  health  or  other emergency orders or regulations related to the
    24  entity's business sector or other laws and regulations as determined  by
    25  the commissioner. In addition, a child care program may not owe past due
    26  state taxes or local property taxes unless the business entity is making
    27  payments  and  complying  with  an  approved  binding  payment agreement
    28  entered into with the taxing authority.
    29    § 458-t. Application and approval process. 1.  A  child  care  program
    30  shall submit a complete application as prescribed by the commissioner.
    31    2.  The  commissioner  shall  establish procedures and a timeframe for
    32  child care facilities to submit applications. As part  of  the  applica-
    33  tion, each child care program shall:
    34    (a)  provide  evidence  in a form and manner prescribed by the commis-
    35  sioner of their eligibility;
    36    (b) agree to allow the department of taxation and finance to share the
    37  child care program's tax information with the office; provided, however,
    38  that any information shared as a result of this  program  shall  not  be
    39  available for disclosure or inspection under the state freedom of infor-
    40  mation law;
    41    (c)  allow  the  office and its agents access to any and all books and
    42  records the office may require to monitor compliance;
    43    (d) certify, under penalty of  perjury,  that  it  is  in  substantial
    44  compliance  with  all  emergency  orders  or  public  health regulations
    45  currently required of such entity, and local, and state tax laws; and
    46    (e) agree to provide any additional information required by the office
    47  relevant to this article.
    48    3. After reviewing a child care program's completed final  application
    49  and  determining that the business entity meets the eligibility criteria
    50  as set forth in this article, the office may issue to  that  child  care
    51  program a certificate of tax credit.
    52    4. The commissioner shall establish an annual application deadline and
    53  provide  all  applicable  deadline  and  application  materials  on  its
    54  website.
    55    § 458-u. Child care program capital improvement tax credit. 1. A busi-
    56  ness entity in the child care facility capital  improvement  tax  credit

        A. 9264                             3

     1  program  that meets the eligibility requirements of section four hundred
     2  fifty-eight-s of this title may be eligible to claim a credit  equal  to
     3  fifty  percent  of  its  qualified  child  care program capital costs as
     4  defined  in  subdivision  four  of section four hundred fifty-eight-r of
     5  this title; provided, however, that such credit shall not be  less  than
     6  one thousand dollars.
     7    2.  A  business  entity,  including  a  partnership, limited liability
     8  company and subchapter S corporation, may not receive a credit in excess
     9  of fifty thousand dollars under this program.
    10    3. The credit shall be allowed  as  provided  in  section  forty-nine,
    11  subdivision  sixty  of section two hundred ten-B and subsection (ppp) of
    12  section six hundred six of the tax law.
    13    4. A business entity may claim the tax credit in the taxable year that
    14  includes the date the certificate of tax credit was issued by the office
    15  pursuant to subdivision three of section four hundred  fifty-eight-t  of
    16  this title.
    17    §  458-v.  Powers  and duties of the commissioner. 1. The commissioner
    18  may promulgate  regulations  establishing  an  application  process  and
    19  eligibility criteria, that shall be applied consistent with the purposes
    20  of  this  title,  so  as not to exceed the annual cap on tax credits set
    21  forth in  section  four  hundred  fifty-eight-y  of  this  title  which,
    22  notwithstanding  any provisions to the contrary in the state administra-
    23  tive procedure act, may be adopted on an emergency basis.
    24    2. The commissioner shall, in  consultation  with  the  department  of
    25  taxation  and finance, develop a certificate of tax credit that shall be
    26  issued by the commissioner  to  eligible  businesses.  Such  certificate
    27  shall contain such information as required by the department of taxation
    28  and finance.
    29    3.  The  commissioner  shall  solely  determine the eligibility of any
    30  applicant applying for entry into the program and shall remove any busi-
    31  ness entity from the program for failing to meet any of the requirements
    32  set forth in section four hundred fifty-eight-s of  this  title  or  for
    33  failing to meet the requirements set forth in subdivision one of section
    34  four hundred fifty-eight-t of this title.
    35    § 458-w. Maintenance of records. Each business entity participating in
    36  the  program  shall  keep  all  relevant  records  for their duration of
    37  program participation for at least three years.
    38    § 458-x. Reporting. Each business entity participating in this program
    39  shall submit a performance report to the office at a time prescribed  in
    40  regulations  by  the commissioner.  The commissioner shall, on or before
    41  April first, two thousand twenty-four and every quarter thereafter until
    42  program funds are fully expended, submit a report to the  governor,  the
    43  temporary  president  of  the  senate,  the speaker of the assembly, the
    44  chair of the senate finance committee, and the  chair  of  the  assembly
    45  ways and means committee, setting forth the activities undertaken by the
    46  program.  Such  report shall include, but not necessarily be limited to,
    47  the following in each reporting period to the extent such information is
    48  available: the total number of participants approved and the  region  in
    49  which  the  business  is located; the total amount of payments disbursed
    50  and tax credits claimed, and the average amount  of  payments  disbursed
    51  and tax credits claimed; the names of payment recipients and tax credits
    52  claimed;  and  such  other  information  as  the commissioner determines
    53  necessary and appropriate to effectuate the purpose of the program. Such
    54  reports shall, at the same time, be included on the office's website.

        A. 9264                             4

     1    § 458-y. Cap on tax credit. The total amount of tax credits listed  on
     2  certificates  of  tax credit issued by the commissioner pursuant to this
     3  title may not exceed two hundred fifty million dollars.
     4    §  2.  The  tax  law  is amended by adding a new section 49 to read as
     5  follows:
     6    § 49. Child care program capital improvement tax credit. (a) Allowance
     7  of credit.  A taxpayer subject to tax under article nine-A or twenty-two
     8  of this chapter shall be allowed a credit against such tax, pursuant  to
     9  the provisions referenced in subdivision (f) of this section. The amount
    10  of the credit is equal to the amount determined pursuant to section four
    11  hundred  fifty-eight-u  of  the  social services law. No cost or expense
    12  paid or incurred by the taxpayer which is included as part of the calcu-
    13  lation of this credit shall be the basis of any other tax credit allowed
    14  under this chapter.
    15    (b) Eligibility. To be eligible for the  child  care  program  capital
    16  improvement  tax  credit,  the taxpayer shall have been issued a certif-
    17  icate of tax credit by the office of children and family services pursu-
    18  ant to subdivision three of section four hundred  fifty-eight-s  of  the
    19  social services law, which certificate shall set forth the amount of the
    20  credit  that  may be claimed for the taxable year. The taxpayer shall be
    21  allowed to claim only the amount listed on the certificate of tax credit
    22  for that taxable year.  A taxpayer that is a partner in  a  partnership,
    23  member  of  a limited liability company or shareholder in a subchapter S
    24  corporation that has received a  certificate  of  tax  credit  shall  be
    25  allowed  its  pro  rata  share  of the credit earned by the partnership,
    26  limited liability company or subchapter S corporation.
    27    (c) Tax return requirement. The taxpayer shall be required  to  attach
    28  to  its  tax return in the form prescribed by the commissioner, proof of
    29  receipt of its certificate of tax credit issued by the  commissioner  of
    30  the office of children and family services.
    31    (d)  Information  sharing. Notwithstanding any provision of this chap-
    32  ter, employees of the office of children and  family  services  and  the
    33  department shall be allowed and are directed to share and exchange:
    34    (1)  information  derived from tax returns or reports that is relevant
    35  to a taxpayer's eligibility to participate in  the  child  care  program
    36  capital improvement tax credit program;
    37    (2)  information  regarding the credit applied for, allowed or claimed
    38  pursuant to this section and taxpayers that are applying for the  credit
    39  or that are claiming the credit; and
    40    (3)  information  contained  in  or  derived  from  credit claim forms
    41  submitted to the office and applications for admission  into  the  child
    42  care  program capital improvement tax credit program. Except as provided
    43  in paragraph two of this subdivision, all information exchanged  between
    44  the  office of children and family services and the department shall not
    45  be subject to disclosure or inspection  under  the  state's  freedom  of
    46  information law.
    47    (e)  Credit  recapture.  If  a certificate of tax credit issued by the
    48  office of children and family  services  under  title  thirteen  of  the
    49  social  services  law  is  revoked  by such office, the amount of credit
    50  described in this section and claimed by  the  taxpayer  prior  to  that
    51  revocation  shall  be added back to tax in the taxable year in which any
    52  such revocation becomes final.
    53    (f) Cross references. For application of the credit  provided  for  in
    54  this section, see the following provisions of this chapter:
    55    (1) article 9-A: section 210-B, subdivision 60;
    56    (2) article 22: section 606, subsection (ppp).

        A. 9264                             5

     1    §  3. Section 210-B of the tax law is amended by adding a new subdivi-
     2  sion 60 to read as follows:
     3    60.  Child  care program capital improvement tax credit. (a) Allowance
     4  of credit.  A taxpayer shall be allowed a  credit,  to  be  computed  as
     5  provided  in  section  forty-nine  of  this  chapter,  against the taxes
     6  imposed by this article.
     7    (b) Application of credit. The credit allowed under  this  subdivision
     8  for  the taxable year shall not reduce the tax due for such year to less
     9  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
    10  section two hundred ten of this article. However, if the amount of cred-
    11  it  allowed  under this subdivision for the taxable year reduces the tax
    12  to such amount or if the taxpayer otherwise pays tax based on the  fixed
    13  dollar  minimum amount, any amount of credit thus not deductible in such
    14  taxable year shall be treated as an overpayment of tax to be credited or
    15  refunded in accordance with  the  provisions  of  section  one  thousand
    16  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    17  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    18  notwithstanding, no interest will be paid thereon.
    19    §  4. Section 606 of the tax law is amended by adding a new subsection
    20  (ppp) to read as follows:
    21    (ppp) Child care program capital improvement tax credit. (1) Allowance
    22  of credit.  A taxpayer shall be allowed a  credit,  to  be  computed  as
    23  provided  in section forty-nine of this chapter, against the tax imposed
    24  by this article.
    25    (2) Application of credit. If the amount of the credit  allowed  under
    26  this subsection for the taxable year exceeds the taxpayer's tax for such
    27  year, the excess shall be treated as an overpayment of tax to be credit-
    28  ed  or refunded in accordance with the provisions of section six hundred
    29  eighty-six of this article, provided, however, that no interest will  be
    30  paid thereon.
    31    §  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    32  of the tax law is amended by  adding  a  new  clause  (li)  to  read  as
    33  follows:
    34  (li) Child care program              Amount of credit under
    35  capital under improvement            subdivision sixty of section two
    36  subsection (ppp)                     hundred ten-B
    37    § 6. This act shall take effect immediately.
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