senate Bill S1845A

Provides business tax credit for employer provided day care

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 13 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 13 / Jan / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 13 / Jan / 2012
    • PRINT NUMBER 1845A
  • 12 / Mar / 2012
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 12 / Mar / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES

Summary

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.

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Bill Details

Versions:
S1845
S1845A
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210, 1456, 1511 & 606, Tax L
Versions Introduced in 2009-2010 Legislative Cycle:
S3951

Sponsor Memo

BILL NUMBER:S1845A

TITLE OF BILL:
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

PURPOSE:
This legislation creates a tax incentive program for
employer-supported day care services for the pre-school and primary
school-age children of its employees.

SUMMARY OF PROVISIONS:
Section 210, 1456, 1511 and 606 are amended with the addition of new
subsections.

JUSTIFICATION:
These changes in the Tax Law establish a twenty percent tax credit
program for employers who provide certain day care services to their
employees. The tax credit will be provided for day care services for
pre-school and primary school-age children, including:

1. employer contracts with third party day care providers;

2. employer provision of direct reimbursement to employees for child
care expenses;

3. operational costs of employer provided on-site or near site day
care services; or

4. expenditures incurred for the training of employees of third party
providers who render day care services to their employees.

In order to meet the guidelines of this tax program, all of the day
care services utilized must meet the governing standards of the State
Department of social Services and the Human Resources Administration
for New York city. In addition, this bill provides that no credit
will be given to employers who discriminate against their employees
on the basis of race, creed, religion, sex, or national origin, as a
determining factor in making day care services available. This
legislation will encourage employers to provide day care services for
their employees, which will undoubtedly encourage individuals to
enter the work force. These aforementioned propensities will
subsequently contribute to the enhancement of the New York State
economy.

LEGISLATIVE HISTORY:

04/07/09 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/06/10 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2013.

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

                                 1845--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 13, 2011
                               ___________

Introduced by Sens. OPPENHEIMER, DIAZ -- read twice and ordered printed,
  and  when  printed  to be committed to the Committee on Investigations
  and Government Operations -- recommitted to the Committee on  Investi-
  gations  and  Government  Operations in accordance with Senate Rule 6,
  sec. 8 -- 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:

  Section 1.  Section 210 of the tax law is  amended  by  adding  a  new
subdivision 45 to read as follows:
  45. EMPLOYER DAY CARE CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST  THE TAX IMPOSED BY THIS ARTICLE TO THE EXTENT OF TWENTY PERCENT
OF THE EXPENSES INCURRED DURING A TAXABLE YEAR BY THE TAXPAYER IN MAKING
AVAILABLE DAY CARE SERVICES TO THE CHILDREN AND WARDS OF  EMPLOYEES  AND
IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD PARTY PROVID-
ER  RENDERING SUCH SERVICES. A TAXPAYER MAY MAKE SUCH SERVICES AVAILABLE
AS FOLLOWS:
  (1) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (2) BY REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY  THE  EMPLOYEE
FOR SUCH SERVICES; OR
  (3) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN  NO  EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT OF TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (B) (1) NO SUCH CREDIT SHALL BE ALLOWED TO  A  TAXPAYER  WHO  UNFAIRLY
DISCRIMINATES  AGAINST  ANY  EMPLOYEE ON THE BASIS OF RACE, CREED, RELI-
GION, SEX, NATIONAL ORIGIN, AGE, DISABILITY, OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04151-04-2

S. 1845--A                          2

  (2) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT  UPON
THE  AVAILABILITY  OF  DAY  CARE SERVICES FOR SUCH CHILDREN OR WARDS, IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (C)  NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (D)  NO  SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE FACILITY OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN WHO ARE SUBJECT TO THE PROVISIONS OF  THE  EDUCATION  LAW  WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 2. Section 1456 of the tax law is amended by adding a new subsection
(z) to read as follows:
  (Z) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST  THE TAX IMPOSED BY THIS ARTICLE TO THE EXTENT OF TWENTY PERCENT
OF THE EXPENSES INCURRED DURING THE TAXABLE  YEAR  BY  THE  TAXPAYER  IN
MAKING  AVAILABLE DAY CARE SERVICES TO THE CHILDREN AND WARDS OF EMPLOY-
EES AND IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD PARTY
PROVIDER RENDERING SUCH SERVICES. A  TAXPAYER  MAY  MAKE  SUCH  SERVICES
AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B)  BY  REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY THE EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN NO EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT  OF  TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (2)  (A)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-
GION,  SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (B) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT  UPON
THE  AVAILABILITY  OF  DAY  CARE SERVICES FOR SUCH CHILDREN OR WARDS, IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE  FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE  FACILITY  OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN  WHO  ARE  SUBJECT  TO THE PROVISIONS OF THE EDUCATION LAW WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 3. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (cc) to read as follows:
  (CC) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
IT  AGAINST  THE  TAX  IMPOSED  BY  THIS ARTICLE TO THE EXTENT OF TWENTY
PERCENT OF THE EXPENSES INCURRED DURING THE TAXABLE YEAR BY THE TAXPAYER
IN MAKING AVAILABLE DAY CARE SERVICES  TO  THE  CHILDREN  AND  WARDS  OF
EMPLOYEES AND IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD
PARTY  PROVIDER  RENDERING  SUCH  SERVICES.  A  TAXPAYER  MAY  MAKE SUCH
SERVICES AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B) BY REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY  THE  EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.

S. 1845--A                          3

  IN  NO  EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT OF TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (2)  (A)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-
GION,  SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (B) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF DAY  CARE
DEPENDENT EMPLOYEES FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT
IS  CONTINGENT UPON THE AVAILABILITY OF DAY CARE SERVICES FOR SUCH CHIL-
DREN OR WARDS, IN PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE  FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE  FACILITY  OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN  WHO  ARE  SUBJECT  TO THE PROVISIONS OF THE EDUCATION LAW WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(uu) to read as follows:
  (UU) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
IT AGAINST THE TAX IMPOSED BY SECTION SIX HUNDRED ONE OF THIS ARTICLE TO
THE  EXTENT  OF  TWENTY  PERCENT OF EXPENSES INCURRED DURING THE TAXABLE
YEAR BY THE TAXPAYER IN MAKING AVAILABLE DAY CARE SERVICES TO THE  CHIL-
DREN  AND  WARDS  OF  EMPLOYEES  AND IN TRAINING PERSONS EMPLOYED BY THE
TAXPAYER OR BY A THIRD PARTY PROVIDER RENDERING SUCH SERVICES. A TAXPAY-
ER MAY MAKE SUCH SERVICES AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B) BY REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY  THE  EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN  NO  EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT OF TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (2) (A) NO SUCH CREDIT SHALL BE ALLOWED TO  A  TAXPAYER  WHO  UNFAIRLY
DISCRIMINATES  AGAINST  ANY  EMPLOYEE ON THE BASIS OF RACE, CREED, RELI-
GION, SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN  MAKING
AVAILABLE DAY CARE SERVICES.
  (B) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR  WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT UPON
THE AVAILABILITY OF DAY CARE SERVICES FOR SUCH  CHILDREN  OR  WARDS,  IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3)  NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4)  NO  SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE FACILITY OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN WHO ARE SUBJECT TO THE PROVISIONS OF  THE  EDUCATION  LAW  WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 5. This act shall take effect immediately and shall apply to taxable
years commencing on and after January 1, 2013.

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