S T A T E   O F   N E W   Y O R K
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                                  6579

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 22, 2011
                               ___________

Introduced by M. of A. MARKEY -- Multi-Sponsored by -- M. of A. LATIMER,
  V. LOPEZ, PHEFFER, WEISENBERG -- read once and referred to the Commit-
  tee on Ways and Means

AN  ACT  to  amend the tax law, in relation to establishing a tax credit
  for each qualifying child of an at-home parent

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (u) to read as follows:
  (U) AT-HOME PARENT CREDIT. (1) FOR  TAXABLE  YEARS  COMMENCING  ON  OR
AFTER  JANUARY  FIRST,  TWO THOUSAND TWELVE, A TAXPAYER MAY CLAIM ON THE
TAXPAYER'S INDIVIDUAL INCOME TAX RETURN A NONREFUNDABLE  CREDIT  OF  ONE
THOUSAND  DOLLARS FOR EACH QUALIFYING CHILD UNTIL SAID CHILD REACHES THE
AGE OF FIVE YEARS IF:
  (A) THE TAXPAYER OR ANOTHER TAXPAYER FILING A JOINT INDIVIDUAL  INCOME
TAX RETURN WITH THE TAXPAYER IS AN AT-HOME PARENT; AND
  (B)  THE  FEDERAL ADJUSTED GROSS INCOME OF ALL OF THE TAXPAYERS FILING
THE INDIVIDUAL INCOME TAX RETURN IS LESS THAN OR EQUAL TO FIFTY THOUSAND
DOLLARS.
  (2) FOR THE PURPOSES OF THIS  SUBSECTION,  "AT-HOME  PARENT"  MEANS  A
PARENT  WHO PROVIDES FULL-TIME CARE AT THE PARENT'S RESIDENCE FOR ONE OR
MORE OF THE PARENT'S OWN QUALIFYING CHILDREN AND WHO CLAIMS THE QUALIFY-
ING CHILD AS A DEPENDENT ON THE PARENT'S INDIVIDUAL  INCOME  TAX  RETURN
FOR  THE  TAXABLE YEAR FOR WHICH THE PARENT CLAIMS THE CREDIT AND IF THE
SUM OF THE FOLLOWING AMOUNTS ARE THREE THOUSAND DOLLARS OR LESS FOR  THE
TAXABLE YEAR FOR WHICH THE PARENT CLAIMS THE CREDIT:
  (A) THE TOTAL WAGES, TIPS, AND OTHER COMPENSATION LISTED ON ALL OF THE
PARENT'S FEDERAL FORMS W-2; AND
  (B) THE GROSS INCOME LISTED ON THE PARENT'S FEDERAL FORM 1040 SCHEDULE
C, PROFIT OR LOSS FROM BUSINESS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09704-01-1

              

A. 6579                             2

  (3)  FOR THE PURPOSES OF THIS SUBSECTION, "PARENT" MEANS AN INDIVIDUAL
WHO:
  (A) IS THE BIOLOGICAL MOTHER OR FATHER OF A QUALIFYING CHILD; OR
  (B) IS THE STEPFATHER OR STEPMOTHER OF A QUALIFYING CHILD; OR
  (C)  LEGALLY  ADOPTS  A  QUALIFYING  CHILD;  OR HAS A QUALIFYING CHILD
PLACED IN THE INDIVIDUAL'S HOME:
  (I) BY A CHILD PLACING AGENCY
  (II) FOR THE PURPOSE OF LEGALLY ADOPTING THE CHILD; OR
  (D) IS A FOSTER PARENT OF A QUALIFYING CHILD; OR
  (E) IS A LEGAL GUARDIAN OF A QUALIFYING CHILD.
  (4) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFYING  CHILD"  MEANS  A
CHILD WHO IS NO MORE THAN FIVE YEARS OF AGE ON THE LAST DAY OF THE TAXA-
BLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
  (5)  A  TAXPAYER  MAY  NOT  CARRY FORWARD OR CARRY BACK THE CREDIT SET
FORTH IN THIS SUBSECTION.
  (6) AN APPROPRIATION SHALL BE MADE FROM THE GENERAL FUND SUFFICIENT TO
REPLACE EDUCATION REVENUES EXPENDED IN PROVIDING FOR THE CREDIT IN  THIS
SUBSECTION.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2012.