Senate Bill S6222

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

                                  6222

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            October 14, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in relation to providing  employers  a  tax
  credit  for  senior dependent care provided to employees and providing
  taxpayers with a credit for their own payments for such care

  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. (A) THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED  BY
THIS  ARTICLE  FOR ANY TAXABLE YEAR AN AMOUNT NOT IN EXCESS OF ONE THOU-
SAND DOLLARS, FOR EACH ADULT CARE  RECIPIENT,  OF  THE  AMOUNT  ACTUALLY
EXPENDED  BY ANY EMPLOYER PROVIDING OR PAYING ANOTHER TO PROVIDE DEPEND-
ENT CARE FOR EMPLOYEES 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 EMPLOYER FOR ANOTHER PROVIDER  OF  SERVICES  TO  PROVIDE
DEPENDENT  CARE;  OR,  IF  THE EMPLOYER ELECTS TO PROVIDE DEPENDENT CARE
ITSELF, TO EXPENSES INCURRED FOR:   DEPENDENT CARE STAFF,  LEARNING  AND
RECREATIONAL  MATERIALS  AND EQUIPMENT, AND THE CONSTRUCTION AND MAINTE-
NANCE 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 ANY CORPORATION  OTHER  THAN
THE CORPORATION ACTUALLY QUALIFYING FOR THE CREDITS.
  (B) 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) 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

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02635-06-9

S. 6222                             2

CARE/ELDER  CARE  HOME  APPROVED  BY  THE  OFFICE OF CHILDREN AND FAMILY
SERVICES FOR PARTICIPATION IN THE UNITED STATES DEPARTMENT  OF  AGRICUL-
TURE 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) EMPLOYERS 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 DEPEN-
DENTS.
  (E) 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 COMMU-
NITY  USED  BY  EMPLOYEES DURING THE EMPLOYEES' WORK HOURS.  THE COMMIS-
SIONER SHALL PROMULGATE RULES AND REGULATIONS DEFINING  THE  ELIGIBILITY
OF EXPENSES AND THE AMOUNT OF THE CREDIT ALLOWABLE THEREFOR. THE COMMIS-
SIONER  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
(qq) to read as follows:
  (QQ)  DEPENDENT  ELDERLY  CARE  CREDIT.  (1)  (A)  A TAXPAYER SHALL BE
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE  IN  AN  AMOUNT
NOT  IN  EXCESS OF ONE THOUSAND DOLLARS, FOR EACH ADULT DAY CARE RECIPI-
ENT, OF THE AMOUNT ACTUALLY EXPENDED BY AN EMPLOYER PROVIDING OR  PAYING
ANOTHER  TO  PROVIDE  DEPENDENT CARE FOR EMPLOYEES DURING THE EMPLOYEES'
WORK HOURS, WHICH CARE MUST BE PROVIDED  IN  AN  ELIGIBLE  FACILITY,  AS
DESCRIBED  IN  SUBPARAGRAPH (C) OF THIS PARAGRAPH.  CREDIT IS APPLIED TO
THE COST OF ANY CONTRACT EXECUTED BY THE EMPLOYER FOR ANOTHER ENTITY  TO
PROVIDE  DEPENDENT CARE; OR, IF THE EMPLOYER ELECTS TO PROVIDE DEPENDENT
CARE ITSELF, TO EXPENSES INCURRED FOR:  DEPENDENT CARE  STAFF,  LEARNING
AND RECREATIONAL MATERIALS AND EQUIPMENT, AND THE CONSTRUCTION AND MAIN-
TENANCE OF A FACILITY.  THIS COST IS NET OF ANY REIMBURSEMENT. THE CRED-
IT 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) 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) 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 AGRICUL-
TURE 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. 6222                             3

  (D) EMPLOYERS 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  DEPEN-
DENTS.
  (E)  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 COMMU-
NITY USED BY EMPLOYEES DURING THE EMPLOYEES' WORK HOURS.    THE  COMMIS-
SIONER  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 ADMINISTRA-
TIVE COSTS INCURRED IN COMPLYING WITH THE FOREGOING PROVISIONS.
  (2) (A) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED
BY  THIS ARTICLE IN AN AMOUNT NOT IN EXCESS OF ONE THOUSAND DOLLARS, FOR
EACH ADULT DAY CARE RECIPIENT, OF THE AMOUNT 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 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) 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) 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  AGRICUL-
TURE 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 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:

(XXXI) DEPENDENT ELDERLY CARE CREDIT AMOUNT OF CREDIT FOR
UNDER SUBSECTION (QQ)                DEPENDENT ELDERLY CARE
                                     UNDER SUBDIVISION FORTY-ONE
                                     OF SECTION TWO HUNDRED TEN

  S 4. The commissioners of taxation and finance and children and family
services shall promulgate any and all rules and regulations and take any
other measures necessary to implement this act on its effective date.
  S 5. This act shall take effect on January first 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.