senate Bill S613B

Provides employers with a tax credit for expenditures to provide dependent care to adult dependents of employees and employees with a similar 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
  • 03 / Mar / 2011
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 03 / Mar / 2011
    • PRINT NUMBER 613A
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 17 / May / 2012
    • AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 17 / May / 2012
    • PRINT NUMBER 613B

Summary

Provides employers with a tax credit for expenditures to provide dependent care to adult dependents of employees of eligible expenditures for adults 60 or over or otherwise eligible; applies to corporate and noncorporate employers; also provides such a credit for employees or other taxpayers, to the extent not covered by the employer.

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Bill Details

See Assembly Version of this Bill:
A4245A
Versions:
S613
S613A
S613B
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S6222, A4597A
2007-2008: A5136

Sponsor Memo

BILL NUMBER:S613B

TITLE OF BILL:
An act to amend the tax law, in relation to establishing business fran-
chise and personal income tax credits for employers which provide care
for the elderly dependents of their employees during work hours and
establishing a personal income tax credit for the provision of care to
the elderly dependent of a taxpayer during work hours

PURPOSE OR GENERAL IDEA OF BILL:
Provides employers with a tax credit for care to adult dependents of
employees and expenditures to provide dependent employees with a similar
credit.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends Tax Law section 210 to add a new subdivision 45 that
creates a income tax credit of up to $1000 per adult care recipient to
any employer who provides or pays for adult dependent care for the adult
dependents of its employees during business hours.

Section 2: Amends Tax Law section 606 to add a new subsection (uu) to
allow a taxpayer credit against the tax. imposed in an amount not in
excess of $1000 for each adult day care recipient, which care must be
provided in an eligible facility.

Section 3 and 4: The commissioners of taxation and finance and children
and family services shall promulgate any and all rules and regulations
and take any other measure necessary to implement this act on its effec-
tive date.

JUSTIFICATION:
An increasing number of New Yorkers are relying on adult care services
to provide care for their adult dependents while they work outside the
home. These services will become even more common as the number of
senior citizens in New York continues to grow over the next several
years. Just as child day care services have become an essential element
of our state economy and help millions of New Yorkers to balance the
needs of career and family, adult care services provide an equally
important service to the growing population of New Yorkers who balance
careers with caring for elderly or disabled relatives. This tax credit
would help ease the financial burdens on caregivers and help ensure that
dependent senior citizens receive the quality care and services they
need. It would also encourage employers to offer adult care services to
their employees.

PRIOR LEGISLATIVE HISTORY:

2005-06: A.2781 Ways & Means
2007-08: A.5136 Ways & Means
2009-10: S.6222 Investigations & Government Operations

EFFECTIVE DATE:
This act shall take effect on the 1st of January next succeeding the
date on which it shall have become a law and shall apply to taxable
years commencing on and after such effective date; provided, however,
that effective immediately, the commissioners of taxation and
finance, and children and family services are authorized and directed
to promulgate any rules and regulations and take any other measures
necessary to implement the provisions of this act on its effective
date.

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

                                 613--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted  as amended and recommitted to said committee -- recommitted
  to the  Committee  on  Investigations  and  Government  Operations  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT to amend the tax law, in relation to establishing business fran-
  chise and personal income tax credits for employers which provide care
  for the elderly dependents of their employees during  work  hours  and
  establishing a personal income tax credit for the provision of care to
  the elderly dependent of a taxpayer during work hours

  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.  EMPLOYEE ELDERLY DEPENDENT CARE CREDIT.  (A) ALLOWANCE OF CREDIT.
THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE FOR THE AMOUNT, NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH EMPLOYEE
DEPENDENT FOR WHICH ADULT  DAY  CARE  SERVICES  ARE  PROVIDED,  ACTUALLY
EXPENDED  BY THE TAXPAYER PROVIDING OR PAYING ANOTHER TO PROVIDE DEPEND-
ENT CARE FOR THE TAXPAYER'S EMPLOYEES' DEPENDENTS DURING THE  EMPLOYEES'
WORK  HOURS,  WHICH  CARE  MUST  BE PROVIDED IN AN ELIGIBLE FACILITY, AS
DESCRIBED IN PARAGRAPH (C) OF THIS SUBDIVISION.   CREDIT IS  APPLIED  TO
THE  COST  OF ANY CONTRACT EXECUTED BY THE TAXPAYER FOR ANOTHER PROVIDER
OF SERVICES TO PROVIDE DEPENDENT CARE; OR, IF  THE  TAXPAYER  ELECTS  TO
PROVIDE DEPENDENT CARE ITSELF, TO EXPENSES INCURRED FOR:  DEPENDENT CARE
STAFF,  LEARNING  AND  RECREATIONAL  MATERIALS  AND  EQUIPMENT,  AND THE
CONSTRUCTION AND MAINTENANCE OF A FACILITY.   THIS COST IS  NET  OF  ANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04909-03-2

S. 613--B                           2

REIMBURSEMENT.  THE  CREDIT  SHALL NOT BE ALLOWED FOR ANY EXPENSES WHICH
ARE PAID BY AN EMPLOYEE AND SERVE AS THE BASIS FOR A PERSONAL INCOME TAX
CREDIT. THE CREDITS ALLOWED UNDER THIS SUBDIVISION SHALL NOT BE USED  BY
ANY  CORPORATION  OTHER THAN THE CORPORATION ACTUALLY QUALIFYING FOR THE
CREDITS.
  (B) CARRYOVER.  CREDIT MAY BE CARRIED FORWARD FOR THE FIVE  SUCCESSIVE
YEARS  IF THE AMOUNT ALLOWABLE AS CREDIT EXCEEDS INCOME TAX LIABILITY IN
A TAX 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.
  (C) ELIGIBLE FACILITY. AN ELIGIBLE FACILITY MUST HAVE AN AVERAGE DAILY
ENROLLMENT FOR THE TAXABLE YEAR OF NO LESS THAN SIX PERSONS SIXTY  YEARS
OF AGE OR OLDER AND BE LICENSED OR CERTIFIED ACCORDING TO THE APPLICABLE
LAW  OR  REGULATIONS;  OR  MUST SERVE FIVE OR FEWER PERSONS AGE SIXTY OR
OLDER IN A FAMILY CHILD CARE/ELDER CARE HOME APPROVED BY THE  OFFICE  OF
CHILDREN  AND  FAMILY  SERVICES  FOR  PARTICIPATION IN THE UNITED STATES
DEPARTMENT OF AGRICULTURE CHILD AND ADULT  NUTRITION  PROGRAM;  OR  MUST
SERVE  ADULT  RELATIVES  OF  EMPLOYEES IN EITHER A COMMUNITY-BASED ELDER
CARE FACILITY OR A FACILITY AT THE EMPLOYMENT SITE; OR MUST SERVE  ADULT
DEPENDENTS  HAVING PHYSICAL, EMOTIONAL, OR MENTAL DISABILITIES IN EITHER
A COMMUNITY-BASED FACILITY OR A FACILITY AT THE EMPLOYMENT SITE.
  (D) CERTIFICATION. TAXPAYERS  SHALL BE CERTIFIED AS ELIGIBLE  FOR  THE
TAX  CREDIT  BY  THE OFFICE OF CHILDREN AND FAMILY SERVICES FOR PROGRAMS
SERVING ELDERLY ADULTS AND BY  THE  COMMISSIONER  FOR  PROGRAMS  SERVING
OTHER ADULT DEPENDENTS.
  (E)  ADDITIONAL CREDIT.  IN ADDITION TO THE CREDIT ALLOWED PURSUANT TO
PARAGRAPH (A) OF THIS SUBDIVISION, THERE SHALL BE ALLOWED AN  ADDITIONAL
CREDIT,  SUBJECT TO THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION,
FOR ADDITIONAL ELIGIBLE EXPENSES ASSUMED OR  INCURRED  BY  THE  EMPLOYER
WHICH INCREASE THE QUALITY, AVAILABILITY, AND AFFORDABILITY OF DEPENDENT
CARE  IN  THE  COMMUNITY  USED  BY  EMPLOYEES DURING THE EMPLOYEES' WORK
HOURS.  THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS DEFINING
THE ELIGIBILITY OF EXPENSES AND  THE  AMOUNT  OF  THE  CREDIT  ALLOWABLE
THEREFOR.  THE  COMMISSIONER  SHALL FURTHER PROVIDE AN ADDITIONAL CREDIT
FOR ADMINISTRATIVE  COSTS  INCURRED  IN  COMPLYING  WITH  THE  FOREGOING
PROVISIONS.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(uu) to read as follows:
  (UU) DEPENDENT ELDERLY CARE CREDIT. (1)  EMPLOYER.  (A)  ALLOWANCE  OF
CREDIT.  A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE FOR THE AMOUNT, NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH
EMPLOYEE DEPENDENT FOR WHICH ADULT DAY CARE SERVICES ARE PROVIDED, ACTU-
ALLY  EXPENDED  BY  THE  TAXPAYER PROVIDING OR PAYING ANOTHER TO PROVIDE
DEPENDENT CARE FOR  THE  TAXPAYER'S  EMPLOYEES'  DEPENDENTS  DURING  THE
EMPLOYEES' WORK HOURS, WHICH CARE MUST BE PROVIDED IN AN ELIGIBLE FACIL-
ITY,  AS  DESCRIBED  IN  SUBPARAGRAPH (C) OF THIS PARAGRAPH.   CREDIT IS
APPLIED TO THE COST OF ANY CONTRACT EXECUTED BY THE TAXPAYER FOR ANOTHER
ENTITY TO PROVIDE DEPENDENT CARE; OR, IF THE TAXPAYER ELECTS TO  PROVIDE
DEPENDENT  CARE ITSELF, TO EXPENSES INCURRED FOR:  DEPENDENT CARE STAFF,
LEARNING AND RECREATIONAL MATERIALS AND EQUIPMENT, AND THE  CONSTRUCTION
AND  MAINTENANCE  OF A FACILITY.  THIS COST IS NET OF ANY REIMBURSEMENT.
THE CREDIT SHALL NOT BE ALLOWED FOR  ANY  EXPENSES  WHICH  ARE  PAID  BY
EMPLOYEES  AND  SERVE AS THE BASIS FOR A PERSONAL INCOME TAX CREDIT. THE
CREDITS ALLOWED UNDER THIS PARAGRAPH SHALL NOT BE USED BY  ANY  EMPLOYER
OTHER THAN THE EMPLOYER ACTUALLY QUALIFYING FOR THE CREDITS.

S. 613--B                           3

  (B)  CARRYOVER.  CREDIT MAY BE CARRIED FORWARD FOR THE FIVE SUCCESSIVE
YEARS IF THE AMOUNT ALLOWABLE AS CREDIT EXCEEDS INCOME TAX LIABILITY  IN
A  TAX  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.
  (C)  ELIGIBLE  FACILITY.    AN  ELIGIBLE FACILITY MUST HAVE AN AVERAGE
DAILY ENROLLMENT FOR THE TAXABLE YEAR OF NO LESS THAN SIX PERSONS  SIXTY
YEARS  OF  AGE  OR  OLDER  AND BE LICENSED OR CERTIFIED ACCORDING TO THE
APPLICABLE LAW OR REGULATIONS; OR MUST SERVE FIVE OR FEWER  PERSONS  AGE
SIXTY  OR  OLDER  IN A FAMILY CHILD CARE/ELDER CARE HOME APPROVED BY THE
OFFICE OF CHILDREN AND FAMILY SERVICES FOR PARTICIPATION IN  THE  UNITED
STATES  DEPARTMENT  OF AGRICULTURE CHILD AND ADULT NUTRITION PROGRAM; OR
MUST SERVE ADULT RELATIVES OF  EMPLOYEES  IN  EITHER  A  COMMUNITY-BASED
ELDER  CARE FACILITY OR A FACILITY AT THE EMPLOYMENT SITE; OR MUST SERVE
ADULT DEPENDENTS HAVING PHYSICAL, EMOTIONAL, OR MENTAL  DISABILITIES  IN
EITHER A COMMUNITY-BASED FACILITY OR A FACILITY AT THE EMPLOYMENT SITE.
  (D)  CERTIFICATION.   TAXPAYERS SHALL BE CERTIFIED AS ELIGIBLE FOR THE
TAX CREDIT BY THE OFFICE OF CHILDREN AND FAMILY  SERVICES  FOR  PROGRAMS
SERVING  ELDERLY  ADULTS  AND  BY  THE COMMISSIONER FOR PROGRAMS SERVING
OTHER ADULT DEPENDENTS.
  (E) ADDITIONAL CREDIT.  IN ADDITION TO THE CREDIT ALLOWED PURSUANT  TO
SUBPARAGRAPH (A) OF THIS PARAGRAPH, THERE SHALL BE ALLOWED AN ADDITIONAL
CREDIT, SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (B) OF THIS PARAGRAPH,
FOR  ADDITIONAL  ELIGIBLE  EXPENSES  ASSUMED OR INCURRED BY THE EMPLOYER
WHICH INCREASE THE QUALITY, AVAILABILITY, AND AFFORDABILITY OF DEPENDENT
CARE IN THE COMMUNITY USED  BY  EMPLOYEES  DURING  THE  EMPLOYEES'  WORK
HOURS.  THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS DEFINING
THE  ELIGIBILITY  OF  EXPENSES  AND  THE  AMOUNT OF THE CREDIT ALLOWABLE
THEREFOR.  THE COMMISSIONER SHALL FURTHER PROVIDE AN  ADDITIONAL  CREDIT
FOR  ADMINISTRATIVE  COSTS  INCURRED  IN  COMPLYING  WITH  THE FOREGOING
PROVISIONS.
  (2) INDIVIDUAL.  (A) ALLOWANCE OF CREDIT.  A TAXPAYER SHALL BE ALLOWED
A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE AMOUNT, NOT  TO
EXCEED  ONE  THOUSAND DOLLARS FOR EACH ELDERLY DEPENDENT OF THE TAXPAYER
FOR WHICH ADULT DAY CARE SERVICES ARE PROVIDED, ACTUALLY EXPENDED BY THE
TAXPAYER AS PAYMENT TO AN ELIGIBLE FACILITY FOR PROVIDING DEPENDENT CARE
DURING THE TAXPAYER'S WORK HOURS, WHICH CARE  MUST  BE  PROVIDED  IN  AN
ELIGIBLE  FACILITY,  AS DESCRIBED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH.
THIS COST IS NET OF ANY REIMBURSEMENT. THE CREDIT SHALL NOT  BE  ALLOWED
FOR ANY EXPENSES WHICH ARE PAID BY AN EMPLOYER OF THE TAXPAYER AND SERVE
AS  THE  BASIS  FOR A TAX CREDIT FOR SUCH EMPLOYER.  THE CREDITS ALLOWED
UNDER THIS PARAGRAPH SHALL NOT BE USED BY ANY TAXPAYER  OTHER  THAN  THE
TAXPAYER ACTUALLY QUALIFYING FOR THE CREDITS.
  (B)  CARRYOVER.  CREDIT MAY BE CARRIED FORWARD FOR THE FIVE SUCCESSIVE
YEARS IF THE AMOUNT ALLOWABLE AS CREDIT EXCEEDS INCOME TAX LIABILITY  IN
A  TAX  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.
  (C)  ELIGIBLE  FACILITY.    AN  ELIGIBLE FACILITY MUST HAVE AN AVERAGE
DAILY ENROLLMENT FOR THE TAXABLE YEAR OF NO LESS THAN SIX PERSONS  SIXTY
YEARS  OF  AGE  OR  OLDER  AND BE LICENSED OR CERTIFIED ACCORDING TO THE
APPLICABLE LAW OR REGULATIONS; OR MUST SERVE FIVE OR FEWER  PERSONS  AGE
SIXTY  OR  OLDER  IN A FAMILY CHILD CARE/ELDER CARE HOME APPROVED BY THE
OFFICE OF CHILDREN AND FAMILY SERVICES FOR PARTICIPATION IN  THE  UNITED
STATES  DEPARTMENT  OF AGRICULTURE CHILD AND ADULT NUTRITION PROGRAM; OR
MUST SERVE ADULT RELATIVES OF  EMPLOYEES  IN  EITHER  A  COMMUNITY-BASED

S. 613--B                           4

ELDER  CARE FACILITY OR A FACILITY AT THE EMPLOYMENT SITE; OR MUST SERVE
ADULT DEPENDENTS HAVING PHYSICAL, EMOTIONAL, OR MENTAL  DISABILITIES  IN
EITHER A COMMUNITY-BASED FACILITY OR A FACILITY AT THE EMPLOYMENT SITE.
  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) DEPENDENT ELDERLY CARE       AMOUNT OF CREDIT FOR
CREDIT UNDER PARAGRAPH ONE OF        EMPLOYEE ELDERLY DEPENDENT CARE
SUBSECTION (UU)                      UNDER SUBDIVISION FORTY-FIVE
                                     OF SECTION TWO HUNDRED TEN

  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a  law  and  shall  apply  to
taxable  years  commencing  on  and after such effective date; provided,
however, that, effective immediately, the commissioners of taxation  and
finance, and children and family services are authorized and directed to
promulgate any rules and regulations, and take any other measures neces-
sary to implement the provisions of this act on its effective date.

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