S T A T E O F N E W Y O R K
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3434
2009-2010 Regular Sessions
I N A S S E M B L Y
January 27, 2009
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Introduced by M. of A. CLARK, JACOBS, JOHN -- Multi-Sponsored by -- M.
of A. ALFANO, BARRA, BRENNAN, GALEF, WEINSTEIN -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to authorizing a franchise tax
credit for providers of child care services in certain instances
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 21-b to read as follows:
21-B. CHILD CARE FACILITY CREDIT. (A) FOR THE PURPOSES OF THIS SUBDI-
VISION, "CHILD CARE INFORMATION AND REFERRAL PROGRAMS" SHALL BE THOSE
SERVICES DEFINED IN SECTION FOUR HUNDRED TEN-Q OF THE SOCIAL SERVICES
LAW.
(B) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE, OF THIRTY PERCENT OF: (1) START UP COSTS INCURRED IN
ESTABLISHING A CHILD CARE PROGRAM LICENSED OR REGISTERED IN ACCORDANCE
WITH SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW OR THE
ADMINISTRATIVE CODE OF THE CITY OF NEW YORK OR CONSTRUCTING A CHILD DAY
CARE FACILITY TO BE USED BY THE CHILDREN OF THE TAXPAYER'S EMPLOYEES AND
(2) CONTRIBUTIONS FOR THE TAXPAYER'S EMPLOYEES TO CHILD CARE INFORMATION
AND REFERRAL PROGRAMS.
(C) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN AN
AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE HIGHER OF THE
AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS
SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF CREDIT ALLOWABLE UNDER
THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,
ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH YEAR SHALL BE CARRIED OVER
TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S
TAX FOR SUCH YEAR OR YEARS.
S 2. Section 1456 of the tax law is amended by adding a new subsection
(e-1) to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05001-01-9
A. 3434 2
(E-1) CHILD CARE FACILITY CREDIT. (1) FOR THE PURPOSES OF THIS
SUBSECTION, "CHILD CARE INFORMATION AND REFERRAL PROGRAMS" SHALL BE
THOSE SERVICES DEFINED IN SECTION FOUR HUNDRED TEN-Q OF THE SOCIAL
SERVICES LAW.
(2) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE, OF THIRTY PERCENT
OF: (A) START UP COSTS INCURRED IN ESTABLISHING A CHILD CARE PROGRAM
LICENSED OR REGISTERED IN ACCORDANCE WITH SECTION THREE HUNDRED NINETY
OF THE SOCIAL SERVICES LAW OR THE ADMINISTRATIVE CODE OF THE CITY OF NEW
YORK OR CONSTRUCTING A CHILD DAY CARE FACILITY TO BE USED BY THE CHIL-
DREN OF THE TAXPAYER'S EMPLOYEES AND (B) CONTRIBUTIONS FOR THE TAXPAY-
ER'S EMPLOYEES TO CHILD CARE INFORMATION AND REFERRAL PROGRAMS.
(3) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN AN
AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE HIGHER OF THE
AMOUNTS PRESCRIBED IN SUBSECTIONS (A) AND (B) OF SECTION FOURTEEN
HUNDRED FIFTY-FIVE OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE
AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN
SUCH YEAR SHALL BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY
BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
S 3. Section 1511 of the tax law is amended by adding a new subdivi-
sion (h-1) to read as follows:
(H-1) CHILD CARE FACILITY CREDIT. (1) FOR THE PURPOSES OF THIS SUBDI-
VISION, "CHILD CARE INFORMATION AND REFERRAL PROGRAMS" SHALL BE THOSE
SERVICES DEFINED IN SECTION FOUR HUNDRED TEN-Q OF THE SOCIAL SERVICES
LAW.
(2) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE, OF THIRTY PERCENT OF: (A) START UP COSTS INCURRED IN
ESTABLISHING A CHILD CARE PROGRAM LICENSED OR REGISTERED IN ACCORDANCE
WITH SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW OR THE
ADMINISTRATIVE CODE OF THE CITY OF NEW YORK OR CONSTRUCTING A CHILD DAY
CARE FACILITY TO BE USED BY THE CHILDREN OF THE TAXPAYER'S EMPLOYEES AND
(B) CONTRIBUTIONS FOR THE TAXPAYER'S EMPLOYEES TO CHILD CARE INFORMATION
AND REFERRAL PROGRAMS.
(3) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN AN
AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM AMOUNT
FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
TWO OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF CREDIT
ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH YEAR SHALL BE
CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
S 4. This act shall take effect January 1, 2010 and shall apply to
taxable years commencing on and after such effective date.