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

                                 2263--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 15, 2013
                               ___________

Introduced  by  Sens.  KLEIN,  BALL,  MAZIARZ  -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations -- 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 committee

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 48 to read as follows:
  48.  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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06015-02-4
              

S. 2263--A                          2

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
(u) to read as follows:
  (U)  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.
  (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

S. 2263--A                          3

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
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. 2263--A                          4

  S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause  (xxxvii)  to  read  as
follows:

(XXXVII) DEPENDENT ELDERLY CARE      AMOUNT OF CREDIT FOR
CREDIT UNDER PARAGRAPH ONE OF        EMPLOYEE ELDERLY DEPENDENT CARE
SUBSECTION (U)                       UNDER SUBDIVISION FORTY-EIGHT
                                     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.