senate Bill S192A

Establishes an elder care tax credit

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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

  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / Jan / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / Jan / 2012
    • PRINT NUMBER 192A

Summary

Establishes an elder tax credit for taxpayers providing elder care and corporations providing elder care for their employees; defines qualified taxpayer as a single person with an income under 40 thousand dollars or a married couple with a joint income of less than 75 thousand dollars; provides that the elderly person be 65 years of age or older with an income under 13 thousand dollars.

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Bill Details

Versions:
S192
S192A
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง606 & 210, Tax L
Versions Introduced in 2009-2010 Legislative Cycle:
S2156

Sponsor Memo

BILL NUMBER:S192A

TITLE OF BILL:
An act to amend the tax law, in relation to establishing an elder care
tax credit

PURPOSE:
To provide those taking care of elderly relatives a tax credit and to
provide a tax credit to employers providing dependent care during work
hours to their employees' elderly relatives.

SUMMARY OF PROVISIONS:
Section 1. Adding a new subsection (uu) of section 606 of the tax law
to provide a tax credit in the amount of $1,000 to taxpayers caring
for elderly dependent relatives within the third degree of
consanguinity. The elderly dependent must be sixty-five years of age
or older and reside with the taxpayer for twelve months out of the
year. The individual receiving the credit must have an income of
$40,000 or less and married persons filing jointly must have an income
of $75,000 or less. The elderly individual receiving care must have an
income of $13,000 or less or $20,400 or less for married elderly
dependents.

Section 2. Section 210 of the tax law is amended to provide employers
a tax credit equal to twenty-five percent of total expenditures for
the provision of elder care services to elder dependents of employees.

JUSTIFICATION:
As of 1999, New York continues to lead the nation in per capita
spending on Medicaid at $1,352. As the percentage of the elderly
population grows, due to the acing baby boom generation, and advances
in medical technologies are made, the aging population will increase
at an exponential rate. Therefore, it is in the financial interest of
the state to develop and promote incentives to encourage cost
effective living arrangements.

One living arrangement option for the elderly, would be to reside with
a family member who can help provide for their needs. The family is an
important means of support for an elderly person, financially,
physically and emotionally. The support a family can provide to an
aging person could prevent and forestall the senior from needing to
reside in a costly residential setting. When a senior does need a
nursing home facility, the expense is often picked up by the state in
the form of Medicaid because the senior often spends down his/her
available funds. The $1,000 credit would act as an incentive to
facilitate the transition of the elderly into a family member's home
and aid the family for care expenses.

This bill would also provide an incentive to employers to provide
dependent care services, during working hours, to their employees who
care for elderly dependents by granting a tax credit for expenses paid
as a result of such care. The provision of dependent care services
would also create a climate in the work place that would attract and
retain employees. Persons caring for an elderly relative often
experience conflicts between work and attending to the needs of their
elderly parent, grandparent, aunt, or uncle. A tax credit would


encourage employers to develop on-site facilities for elder care
and/or assist employees in finding appropriate sites for their elder
loved one. This would benefit not only the employee and his/her
elderly loved one, but also the employer by reducing absenteeism and
distraction of the employee while at the job. The twenty-five percent
tax credit authorized under this legislation would be applied for the
cost of any contract executed by the employer for off-site elder care
or, if the employer elects to provide on-site adult day care, for
expenses of staffing, learning and recreational materials and
equipment, and the construction and maintenance of a facility.

Establishment of an elder care tax credit for family members and for
employers would provide needed incentives to encourage increased
options for our state's senior population when and if they reach a
stage in their life where it is no longer feasible to live entirely
independently.

LEGISLATIVE HISTORY:
S.2156 of 2009/10; Referred to Investigations & Government Operations
S.5468A of 1999/00; Referred to Investigations & Government Operations
S.2120 of 2001/02; Referred to Investigations & Government Operations
S.1514A of 2003/04; Referred to Investigations & Government Operations
S.206 of 2005/06; Referred to Investigations & Government Operations
S.1098 of 2007/08; Referred to Senate Investigations & Government
Operations

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply
to the taxable years beginning on or after January 1, 2014.

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

                                 192--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  MAZIARZ,  DeFRANCISCO,  DIAZ, LANZA, RANZENHOFER,
  SALAND, YOUNG -- read twice and ordered printed, and when  printed  to
  be  committed  to the Committee on Investigations and Government Oper-
  ations -- recommitted to the Committee on Investigations  and  Govern-
  ment  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 establishing an  elder  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 (uu) to read as follows:
  (UU)  ELDER  CARE  CREDIT.  FOR  TAXABLE YEARS COMMENCING ON AND AFTER
JANUARY ONE, TWO  THOUSAND  FOURTEEN,  A  QUALIFIED  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT  AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT
EQUAL TO ONE THOUSAND DOLLARS. FOR THE PURPOSES  OF  THIS  SUBSECTION  A
"QUALIFIED  TAXPAYER" SHALL MEAN A SINGLE PERSON WITH AN INCOME OF FORTY
THOUSAND DOLLARS OR LESS OR  MARRIED  PERSONS  FILING  JOINTLY  WITH  AN
INCOME OF SEVENTY-FIVE THOUSAND DOLLARS OR LESS WHO CARES FOR AN ELDERLY
DEPENDENT  WHO  IS  SIXTY-FIVE  YEARS  OF  AGE  OR OLDER, RELATED TO THE
TAXPAYER WITHIN THE THIRD DEGREE OF CONSANGUINITY, WHO RESIDED WITH  THE
TAXPAYER  FOR  THE  TWELVE MONTHS IMMEDIATELY PRECEDING THE TAXABLE YEAR
FOR WHICH THE CREDIT IS CLAIMED AND WHOSE INCOME  IS  THIRTEEN  THOUSAND
DOLLARS  OR  LESS  FOR  A  SINGLE  ELDERLY  DEPENDENT OR TWENTY THOUSAND
DOLLARS OR LESS FOR MARRIED ELDERLY DEPENDENTS.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
14 to read as follows:
  14. ELDER CARE CREDIT.  (A) THERE SHALL BE ALLOWED AS A CREDIT AGAINST
THE TAX IMPOSED BY THIS ARTICLE FOR ANY TAXABLE YEAR AN AMOUNT EQUAL  TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01112-02-2

S. 192--A                           2

TWENTY-FIVE  PERCENT  OF  THE  AMOUNT EXPENDED BY ANY EMPLOYER PROVIDING
ELDER CARE FOR EMPLOYEES DURING THE EMPLOYEE'S WORK HOURS. CREDIT  SHALL
BE  APPLIED  TO  THE  COST  OF ANY CONTRACT EXECUTED BY THE EMPLOYER FOR
OFF-SITE  SERVICES  TO PROVIDE ELDER CARE; OR, IF THE EMPLOYER ELECTS TO
PROVIDE ELDER CARE ON-SITE, TO EXPENSES OF ELDER  CARE  STAFF,  LEARNING
AND RECREATIONAL MATERIALS AND EQUIPMENT, AND THE CONSTRUCTION AND MAIN-
TENANCE  OF  A  FACILITY.  A  CREDIT  PURSUANT TO THE PROVISIONS OF THIS
SUBDIVISION SHALL NOT BE ALLOWED FOR ANY EXPENSES  WHICH  SERVE  AS  THE
BASIS  FOR  A  PERSONAL  INCOME TAX CREDIT PURSUANT TO THE PROVISIONS OF
SUBSECTION (UU) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.  THE  CREDIT
ALLOWED  UNDER  THIS SUBDIVISION SHALL NOT BE USED BY ANY EMPLOYER OTHER
THAN AN ELIGIBLE EMPLOYER WITH AN OFF-SITE OR ON-SITE ENROLLMENT FOR THE
TAXABLE YEAR OF NO LESS THAN SIX PERSONS  SIXTY-FIVE  YEARS  OF  AGE  OR
OLDER  RECEIVING  ELDER  CARE.  FOR THE PURPOSES OF THIS SUBDIVISION, AN
"ELIGIBLE EMPLOYER" SHALL MEAN  AN  EMPLOYER  PROVIDING  ELDER  CARE  IN
ACCORDANCE  WITH  THE  PROVISIONS  OF  THIS  SUBDIVISION  WHICH HAS BEEN
LICENSED OR CERTIFIED IN ACCORDANCE WITH THE APPROPRIATE  PROVISIONS  OF
THE  PUBLIC HEALTH LAW AND SOCIAL SERVICES LAW AND HAS BEEN CERTIFIED BY
THE DEPARTMENT OF HEALTH AS ELIGIBLE TO RECEIVE THE CREDIT  PURSUANT  TO
THIS SUBDIVISION.
  (B)  CREDIT  MAY  BE CARRIED FORWARD FOR THREE SUCCESSIVE YEARS IF THE
AMOUNT ALLOWABLE AS CREDIT EXCEEDS INCOME TAX  LIABILITY  IN  A  TAXABLE
YEAR;  HOWEVER,  THEREAFTER, IF THE AMOUNT ALLOWABLE AS A CREDIT EXCEEDS
THE TAX LIABILITY, THE AMOUNT OF  EXCESS  SHALL  NOT  BE  REFUNDABLE  OR
CARRIED FORWARD TO ANY OTHER TAXABLE YEAR.
  S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xxxiv)  to  read  as
follows:

(XXXIV) ELDER CARE CREDIT UNDER      AMOUNT OF CREDIT UNDER
SUBSECTION (UU)                      SUBDIVISION FOURTEEN OF
                                     SECTION TWO HUNDRED TEN
  S  4.  The  commissioner  of taxation and finance, the commissioner of
health and the  commissioner  of  the  office  of  children  and  family
services shall promulgate any and all rules and regulations and take any
other measures necessary to implement this act on its effective date.
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2014.

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