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

                                  3951

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 7, 2009
                               ___________

Introduced  by  Sen.  OPPENHEIMER -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN  ACT  to  amend the tax law, in relation to providing credits against
  the tax imposed upon employers providing certain day care services  to
  the children of its employees

  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 41 to read as follows:
  41. EMPLOYER DAY CARE CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST  THE TAX IMPOSED BY THIS ARTICLE TO THE EXTENT OF TWENTY PERCENT
OF THE EXPENSES INCURRED DURING A TAXABLE YEAR BY THE TAXPAYER IN MAKING
AVAILABLE DAY CARE SERVICES TO THE CHILDREN AND WARDS OF  EMPLOYEES  AND
IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD PARTY PROVID-
ER  RENDERING SUCH SERVICES. A TAXPAYER MAY MAKE SUCH SERVICES AVAILABLE
AS FOLLOWS:
  (1) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (2) BY REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY  THE  EMPLOYEE
FOR SUCH SERVICES; OR
  (3) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN  NO  EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT OF TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (B) (1) NO SUCH CREDIT SHALL BE ALLOWED TO  A  TAXPAYER  WHO  UNFAIRLY
DISCRIMINATES  AGAINST  ANY  EMPLOYEE ON THE BASIS OF RACE, CREED, RELI-
GION, SEX, NATIONAL ORIGIN, AGE, DISABILITY, OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (2) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT  UPON
THE  AVAILABILITY  OF  DAY  CARE SERVICES FOR SUCH CHILDREN OR WARDS, IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05488-01-9
              

S. 3951                             2

  (C) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE  FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (D)  NO  SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE FACILITY OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN WHO ARE SUBJECT TO THE PROVISIONS OF  THE  EDUCATION  LAW  WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 2. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST  THE TAX IMPOSED BY THIS ARTICLE TO THE EXTENT OF TWENTY PERCENT
OF THE EXPENSES INCURRED DURING THE TAXABLE  YEAR  BY  THE  TAXPAYER  IN
MAKING  AVAILABLE DAY CARE SERVICES TO THE CHILDREN AND WARDS OF EMPLOY-
EES AND IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD PARTY
PROVIDER RENDERING SUCH SERVICES. A  TAXPAYER  MAY  MAKE  SUCH  SERVICES
AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B)  BY  REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY THE EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN NO EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT  OF  TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (2)  (A)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-
GION,  SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (B) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT  UPON
THE  AVAILABILITY  OF  DAY  CARE SERVICES FOR SUCH CHILDREN OR WARDS, IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE  FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE  FACILITY  OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN  WHO  ARE  SUBJECT  TO THE PROVISIONS OF THE EDUCATION LAW WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 3. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (y) to read as follows:
  (Y) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST  THE TAX IMPOSED BY THIS ARTICLE TO THE EXTENT OF TWENTY PERCENT
OF THE EXPENSES INCURRED DURING THE TAXABLE  YEAR  BY  THE  TAXPAYER  IN
MAKING  AVAILABLE DAY CARE SERVICES TO THE CHILDREN AND WARDS OF EMPLOY-
EES AND IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD PARTY
PROVIDER RENDERING SUCH SERVICES. A  TAXPAYER  MAY  MAKE  SUCH  SERVICES
AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B)  BY  REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY THE EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN NO EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT  OF  TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (2)  (A)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-

S. 3951                             3

GION,  SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (B)  A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF DAY CARE
DEPENDENT EMPLOYEES FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT
IS CONTINGENT UPON THE AVAILABILITY OF DAY CARE SERVICES FOR SUCH  CHIL-
DREN OR WARDS, IN PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3)  NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4)  NO  SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE FACILITY OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN WHO ARE SUBJECT TO THE PROVISIONS OF  THE  EDUCATION  LAW  WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S  4. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
IT AGAINST THE TAX IMPOSED BY SECTION SIX HUNDRED ONE OF THIS ARTICLE TO
THE EXTENT OF TWENTY PERCENT OF EXPENSES  INCURRED  DURING  THE  TAXABLE
YEAR  BY THE TAXPAYER IN MAKING AVAILABLE DAY CARE SERVICES TO THE CHIL-
DREN AND WARDS OF EMPLOYEES AND IN  TRAINING  PERSONS  EMPLOYED  BY  THE
TAXPAYER OR BY A THIRD PARTY PROVIDER RENDERING SUCH SERVICES. A TAXPAY-
ER MAY MAKE SUCH SERVICES AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B)  BY  REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY THE EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN NO EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT  OF  TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (2)  (A)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-
GION,  SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (B) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT  UPON
THE  AVAILABILITY  OF  DAY  CARE SERVICES FOR SUCH CHILDREN OR WARDS, IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE  FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE  FACILITY  OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN  WHO  ARE  SUBJECT  TO THE PROVISIONS OF THE EDUCATION LAW WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 5. This act shall take effect immediately and shall apply to taxable
years commencing on and after January 1, 2010.