S T A T E O F N E W Y O R K
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5339
2009-2010 Regular Sessions
I N A S S E M B L Y
February 13, 2009
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Introduced by M. of A. ERRIGO, BARRA, FINCH, GIGLIO, KOLB, SALADINO,
TOBACCO -- Multi-Sponsored by -- M. of A. ALFANO, BACALLES, BARCLAY,
BURLING, BUTLER, CALHOUN, CONTE, CORWIN, CROUCH, DUPREY, HAWLEY,
JORDAN, McDONOUGH, McKEVITT, MILLER, MOLINARO, OAKS, O'MARA, QUINN,
RABBITT, RAIA, SAYWARD, SPANO, TEDISCO, THIELE, WALKER -- read once
and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to child care credits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 1 of subsection (c) of section 606 of the tax
law, as amended by section 1 of part M of chapter 63 of the laws of
2000, is amended to read as follows:
(1) A taxpayer shall be allowed a credit as provided herein equal to
the applicable percentage of the credit allowable under section twenty-
one of the internal revenue code for the same taxable year (without
regard to whether the taxpayer in fact claimed the credit under such
section twenty-one for such taxable year). The applicable percentage
shall be the sum of (i) [twenty] THIRTY percent and (ii) a multiplier
multiplied by a fraction. For taxable years beginning in nineteen
hundred ninety-six and nineteen hundred ninety-seven, the numerator of
such fraction shall be the lesser of (i) four thousand dollars or (ii)
fourteen thousand dollars less the New York adjusted gross income for
the taxable year, provided, however, the numerator shall not be less
than zero. For the taxable year beginning in nineteen hundred ninety-
eight, the numerator of such fraction shall be the lesser of (i) thir-
teen thousand dollars or (ii) thirty thousand dollars less the New York
adjusted gross income for the taxable year, provided, however, the
numerator shall not be less than zero. For taxable years beginning in
nineteen hundred ninety-nine, the numerator of such fraction shall be
the lesser of (i) fifteen thousand dollars or (ii) fifty thousand
dollars less the New York adjusted gross income for the taxable year,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05827-01-9
A. 5339 2
provided, however, the numerator shall not be less than zero. For taxa-
ble years beginning after nineteen hundred ninety-nine, the numerator of
such fraction shall be the lesser of (i) fifteen thousand dollars or
(ii) sixty-five thousand dollars less the New York adjusted gross income
for the taxable year, provided, however, the numerator shall not be less
than zero. FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TEN, THE
NUMERATOR OF SUCH FRACTION SHALL BE THE LESSER OF (I) FIFTEEN THOUSAND
DOLLARS OR (II) SEVENTY-FIVE THOUSAND DOLLARS LESS THE NEW YORK ADJUSTED
GROSS INCOME FOR THE TAXABLE YEAR, PROVIDED, HOWEVER, THE NUMERATOR
SHALL NOT BE LESS THAN ZERO. The denominator of such fraction shall be
four thousand dollars for taxable years beginning in nineteen hundred
ninety-six and nineteen hundred ninety-seven, thirteen thousand dollars
for the taxable year beginning in nineteen hundred ninety-eight, and
fifteen thousand dollars for taxable years beginning after nineteen
hundred ninety-eight. The multiplier shall be ten percent for taxable
years beginning in nineteen hundred ninety-six, forty percent for taxa-
ble years beginning in nineteen hundred ninety-seven, [and] eighty
percent for taxable years beginning after nineteen hundred ninety-seven,
AND SEVENTY PERCENT FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND ELEVEN.
Provided, however, for taxable years beginning after nineteen hundred
ninety-nine, for a person whose New York adjusted gross income is less
than forty thousand dollars, such applicable percentage shall be equal
to (i) one hundred percent, plus (ii) ten percent multiplied by a frac-
tion whose numerator shall be the lesser of (i) fifteen thousand dollars
or (ii) forty thousand dollars less the New York adjusted gross income
for the taxable year, provided such numerator shall not be less than
zero, and whose denominator shall be fifteen thousand dollars. Provided,
further, that if the reversion event, as defined in this paragraph,
occurs, the applicable percentage shall, for taxable years ending on or
after the date on which the reversion event occurred, be determined
using the rules specified in this paragraph applicable to taxable years
beginning in nineteen hundred ninety-nine. The reversion event shall be
deemed to have occurred on the date on which federal action, including
but not limited to, administrative, statutory or regulatory changes,
materially reduces or eliminates New York state's allocation of the
federal temporary assistance for needy families block grant, or mate-
rially reduces the ability of the state to spend federal temporary
assistance for needy families block grant funds for the credit for
certain household and dependent care services necessary for gainful
employment or to apply state general fund spending on the credit for
certain household and dependent care services necessary for gainful
employment toward the temporary assistance for needy families block
grant maintenance of effort requirement, and the commissioner of the
office of temporary and disability assistance shall certify the date of
such event to the commissioner, the director of the division of the
budget, the speaker of the assembly and the temporary president of the
senate.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2011.