S T A T E O F N E W Y O R K
________________________________________________________________________
6764--B
2013-2014 Regular Sessions
I N A S S E M B L Y
April 18, 2013
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Introduced by M. of A. FARRELL -- read once and referred to the Commit-
tee on Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- recommitted
to the Committee on Ways and Means in accordance with Assembly Rule 3,
sec. 2 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the tax law, in relation to a credit against personal
income taxes imposed by certain cities for certain household and
dependent care services necessary for gainful employment
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1310 of the tax law is amended by adding a new
subsection (g) to read as follows:
(G) CREDIT FOR CERTAIN HOUSEHOLD AND DEPENDENT CARE SERVICES NECESSARY
FOR GAINFUL EMPLOYMENT. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW
TO THE CONTRARY, ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE,
ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS AUTHORIZED AND EMPOWERED
TO ADOPT AND AMEND LOCAL LAWS GRANTING IN SUCH CITY, ON OR AFTER TAXABLE
YEARS BEGINNING JANUARY FIRST, TWO THOUSAND FOURTEEN, A CREDIT AGAINST
THE CITY PERSONAL INCOME TAX EQUAL TO THE APPLICABLE PERCENTAGE OF THE
CREDIT ALLOWED UNDER PARAGRAPH TWO OF SUBSECTION (A) OF SECTION TWENTY-
ONE OF THE INTERNAL REVENUE CODE (WITHOUT REGARD TO WHETHER THE TAXPAYER
IN FACT CLAIMED THE CREDIT UNDER SUCH SECTION TWENTY-ONE FOR THE TAXABLE
YEAR), TO A TAXPAYER WHO CLAIMED A CREDIT PURSUANT TO SUBSECTION (C) OF
SECTION SIX HUNDRED SIX OF THIS CHAPTER FOR THE SAME TAXABLE YEAR, WITH
RESPECT TO QUALIFYING INDIVIDUALS AS DEFINED IN PARAGRAPH ONE OF
SUBSECTION (B) OF SECTION TWENTY-ONE OF THE INTERNAL REVENUE CODE (WITH-
OUT REGARD TO WHETHER THE TAXPAYER IN FACT CLAIMED THE CREDIT UNDER SUCH
SECTION TWENTY-ONE FOR THE TAXABLE YEAR) WHO ARE DEPENDENTS OF THE
TAXPAYER, AND WHO HAVE NOT ATTAINED THE AGE OF FOUR. THE APPLICABLE
PERCENTAGE SHALL BE DETERMINED AS FOLLOWS:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10246-03-4
A. 6764--B 2
(A) IF HOUSEHOLD GROSS INCOME AS DEFINED IN SUBPARAGRAPH (A) OF PARA-
GRAPH THREE OF SUBDIVISION (B) OF SECTION 11-1706 OF THE ADMINISTRATIVE
CODE OF THE CITY OF NEW YORK IS FORTY-FIVE THOUSAND DOLLARS OR LESS, THE
APPLICABLE PERCENTAGE SHALL BE NINETY PERCENT.
(B) IF SUCH HOUSEHOLD GROSS INCOME IS GREATER THAN FORTY-FIVE THOUSAND
DOLLARS BUT NOT GREATER THAN SIXTY THOUSAND DOLLARS, THE APPLICABLE
PERCENTAGE SHALL BE FIFTY PERCENT PLUS THE PRODUCT OF FORTY PERCENT
MULTIPLIED BY ONE MINUS A FRACTION, THE NUMERATOR OF WHICH IS SUCH
HOUSEHOLD GROSS INCOME LESS FORTY-FIVE THOUSAND DOLLARS AND THE DENOMI-
NATOR OF WHICH IS FIFTEEN THOUSAND DOLLARS.
(C) IF SUCH HOUSEHOLD GROSS INCOME IS GREATER THAN SIXTY THOUSAND
DOLLARS BUT NOT GREATER THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE
APPLICABLE PERCENTAGE SHALL BE FIFTY PERCENT.
(D) IF SUCH HOUSEHOLD GROSS INCOME IS GREATER THAN ONE HUNDRED FIFTY
THOUSAND DOLLARS BUT NOT GREATER THAN ONE HUNDRED SEVENTY-FIVE THOUSAND
DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE FIFTY PERCENT MULTIPLIED BY
ONE MINUS A FRACTION, THE NUMERATOR OF WHICH IS SUCH HOUSEHOLD GROSS
INCOME LESS ONE HUNDRED FIFTY THOUSAND DOLLARS AND THE DENOMINATOR OF
WHICH IS TWENTY-FIVE THOUSAND DOLLARS.
(E) IF SUCH HOUSEHOLD GROSS INCOME IS GREATER THAN ONE HUNDRED SEVEN-
TY-FIVE THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE ZERO.
(2) THE CREDIT UNDER THIS SUBSECTION SHALL BE ALLOWED AGAINST THE
TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE CREDITS PERMITTED BY THIS
ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED, THE TAXPAYER MAY
RECEIVE, AND THE STATE COMPTROLLER, SUBJECT TO THE CERTIFICATE OF THE
COMMISSIONER, SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST, THE AMOUNT
OF SUCH EXCESS, PROVIDED, HOWEVER, IN THE CASE OF A TAXPAYER WHO IS A
PART-YEAR RESIDENT OF THE CITY ANY SUCH OVERPAYMENT UNDER THIS PARAGRAPH
SHALL BE LIMITED TO THE AMOUNT OF SUCH EXCESS MULTIPLIED BY A FRACTION,
THE NUMERATOR OF WHICH IS FEDERAL ADJUSTED GROSS INCOME FOR THE PERIOD
OF RESIDENCE, COMPUTED AS IF THE TAXABLE YEAR FOR FEDERAL INCOME TAX
PURPOSES WERE LIMITED TO THE PERIOD OF RESIDENCE, AND THE DENOMINATOR OF
WHICH IS FEDERAL ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR.
(3) IN THE CASE OF A MARRIED COUPLE WHO FILED A JOINT FEDERAL RETURN,
BUT WHO ARE REQUIRED TO DETERMINE THEIR CITY TAXES SEPARATELY, THE CRED-
IT ALLOWED PURSUANT TO THIS SUBSECTION MAY ONLY BE APPLIED AGAINST THE
TAX IMPOSED ON THE SPOUSE WITH THE LOWER TAXABLE INCOME, COMPUTED WITH-
OUT REGARD TO SUCH CREDIT, PROVIDED, HOWEVER, IF THE SPOUSE WITH THE
LOWER TAXABLE INCOME IS A NONRESIDENT OF SUCH CITY, NO CREDIT SHALL BE
ALLOWED UNDER THIS SUBSECTION. IN THE CASE OF A MARRIED COUPLE WHO ARE
NOT REQUIRED TO FILE A FEDERAL RETURN, THE CREDIT UNDER THIS SUBSECTION
SHALL BE ALLOWED ONLY IF SUCH TAXPAYERS FILE A JOINT CITY INCOME TAX
RETURN.
(4) ANY LOCAL LAW ADOPTED PURSUANT TO THIS SUBSECTION MAY PROVIDE FOR
A CREDIT AS AUTHORIZED BY THIS SUBSECTION FOR A MAXIMUM OF THREE AND
ONE-HALF CONSECUTIVE CALENDAR YEARS; PROVIDED, HOWEVER, THAT ANY SUCH
CREDIT MAY NOT APPLY BEFORE JULY FIRST, TWO THOUSAND FOURTEEN OR AFTER
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGH-
TEEN; PROVIDED FURTHER, HOWEVER, THAT ANY CREDIT PERMITTED BY THIS
SUBSECTION TO A TAXPAYER IN THE TAXABLE YEAR BEGINNING ON JANUARY FIRST,
TWO THOUSAND FOURTEEN, SHALL BE PRORATED ON THE BASIS OF THE NUMBER OF
DAYS REMAINING IN THE CALENDAR YEAR OF SUCH TAXABLE YEAR.
S 2. This act shall take effect immediately.