senate Bill S484

2013-2014 Legislative Session

Provides business tax credit for employer provided day care

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

S484 - Bill Details

See Assembly Version of this Bill:
A394
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210, 1456, 1511 & 606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1845A, A6246A
2009-2010: S3951, A3204

S484 - Bill Texts

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Provides employers with a tax credit in an amount not to exceed 20% of expenses incurred in providing day care services to the children and wards of its employees and in training persons employed by the taxpayer or a third party provider rendering such services; provides that to receive such credit the facility or program rendering day care services must be licensed.

view sponsor memo
BILL NUMBER:S484

TITLE OF BILL:
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

PURPOSE:
This legislation creates a tax incentive program for
employer-supported day care services for the pre-school and primary
school-age children of its employees.

SUMMARY OF PROVISIONS:
Section 210, 1456, 1511 and 606 are amended with the addition of new
subsections.

JUSTIFICATION:
These changes in the Tax Law establish a twenty percent tax credit
program for employers who provide certain day care services to their
employees. The tax credit will be provided for day care services for
pre-school and primary school-age children, including:

1. employer contracts with third party day care providers;

2. employer provision of direct reimbursement to employees for child
care expenses;

3. operational costs of employer provided on-site or near site day
care services; or

4. expenditures incurred for the training of employees of third party
providers who render day care services to their employees.

In order to meet the guidelines of this tax program, all of the day
care services utilized must meet the governing standards of the State
Department of Social Services and the Human Resources Administration
for New York City. In addition, this bill provides that no credit
will be given to
employers who discriminate against their employees on the basis of
race, creed, religion, sex, or national origin, as a determining
factor in making day care services available. This legislation will
encourage employers to provide day care services for their employees,
which will undoubtedly encourage individuals to enter the work force.
These aforementioned propensities will subsequently contribute to the
enhancement of the New York State economy.

LEGISLATIVE HISTORY:
2009-10: S.3951 Referred to Investigations & Government Operations
2011-12: S.1845 Referred to Investigations & Government Operations

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:


This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2014.

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

                                   484

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment 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 46 to read as follows:
  46. 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02050-01-3

S. 484                              2

THE AVAILABILITY OF DAY CARE SERVICES FOR SUCH  CHILDREN  OR  WARDS,  IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (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
(z) to read as follows:
  (Z) 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 (cc) to read as follows:
  (CC) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
IT  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
EMPLOYEES 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.

S. 484                              3

  (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 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
(vv) to read as follows:
  (VV) 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, 2014.

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