Senate Bill S1661A

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

                                 1661--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 13, 2015
                               ___________

Introduced  by  Sens.  CARLUCCI,  KLEIN, AVELLA, SAVINO, VALESKY -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on  Investigations and Government Operations -- recommitted
  to the  Committee  on  Investigations  and  Government  Operations  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to  amend  the  tax law, in relation to the personal income tax
  credit 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.  Paragraph  1  of subsection (c) of section 606 of the tax
law, as amended by section 1 of part M of chapter  63  of  the  laws  of
2000, is amended to read as follows:
  (1)  A  taxpayer shall be allowed a credit as provided herein equal to
the applicable percentage of the credit allowable under section  twenty-
one  of  the  internal  revenue  code for the same taxable year (without
regard to whether the taxpayer in fact claimed  the  credit  under  such
section  twenty-one  for  such  taxable year). The applicable percentage
shall be the sum of (i) twenty percent and (ii) a multiplier  multiplied
by  a  fraction. For taxable years beginning in nineteen hundred ninety-
six and nineteen hundred ninety-seven, the numerator  of  such  fraction
shall  be the lesser of (i) four thousand dollars or (ii) fourteen thou-
sand dollars less the New York adjusted gross  income  for  the  taxable
year,  provided, however, the numerator shall not be less than zero. For
the taxable year beginning in nineteen hundred ninety-eight, the numera-
tor of such fraction shall  be  the  lesser  of  (i)  thirteen  thousand
dollars or (ii) thirty thousand dollars less the New York adjusted gross
income  for the taxable year, provided, however, the numerator shall not
be less than zero. For taxable years beginning in nineteen hundred nine-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02046-02-6
              

S. 1661--A                          2

ty-nine, the numerator of such fraction  shall  be  the  lesser  of  (i)
fifteen  thousand  dollars  or  (ii) fifty thousand dollars less the New
York adjusted gross income for the taxable year, provided, however,  the
numerator shall not be less than zero. For taxable years beginning after
nineteen  hundred  ninety-nine,  the numerator of such fraction shall be
the lesser of (i) fifteen thousand dollars or (ii)  sixty-five  thousand
dollars  less  the  New York adjusted gross income for the taxable year,
provided, however, the numerator shall not  be  less  than  zero.    The
denominator  of such fraction shall be four thousand dollars for taxable
years beginning in nineteen  hundred  ninety-six  and  nineteen  hundred
ninety-seven,  thirteen  thousand dollars for the taxable year beginning
in nineteen hundred ninety-eight, and fifteen thousand dollars for taxa-
ble years beginning after nineteen hundred ninety-eight. The  multiplier
shall  be  ten  percent  for taxable years beginning in nineteen hundred
ninety-six, forty  percent  for  taxable  years  beginning  in  nineteen
hundred  ninety-seven,  and  eighty  percent for taxable years beginning
after nineteen hundred  ninety-seven.  Provided,  however,  for  taxable
years  beginning  after nineteen hundred ninety-nine, for a person whose
New York adjusted gross income is less than forty thousand dollars, such
applicable percentage shall be equal to (i) one  hundred  percent,  plus
(ii)  ten  percent multiplied by a fraction whose numerator shall be the
lesser of [(i)] (A) fifteen thousand dollars or [(ii)] (B)  forty  thou-
sand  dollars  less  the  New York adjusted gross income for the taxable
year, provided such numerator shall not be less  than  zero,  and  whose
denominator  shall  be fifteen thousand dollars. Provided, further, that
[if] FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
SIXTEEN, THE AMOUNT OF CREDIT CALCULATED  PURSUANT  TO  THIS  SUBSECTION
SHALL  BE  INCREASED  BY AN ADDITIONAL FIFTY PERCENT; PROVIDED, HOWEVER,
THAT THE CREDIT PROVIDED FOR IN THIS SUBSECTION SHALL NOT  BE  AVAILABLE
TO  TAXPAYERS  WHO FILE JOINTLY WITH ADJUSTED GROSS INCOMES IN EXCESS OF
THREE HUNDRED FIFTY THOUSAND DOLLARS, TO TAXPAYERS WHO FILE AS HEADS  OF
HOUSEHOLDS  WITH ADJUSTED GROSS INCOMES IN EXCESS OF THREE HUNDRED THOU-
SAND DOLLARS, AND TO TAXPAYERS  WHO  FILE  SINGLY  WITH  ADJUSTED  GROSS
INCOMES  IN  EXCESS OF ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS. IF the
reversion event, as defined in this paragraph,  occurs,  the  applicable
percentage shall, for taxable years ending on or after the date on which
the reversion event occurred, be determined using the rules specified in
this paragraph applicable to taxable years beginning in nineteen hundred
ninety-nine. The reversion event shall be deemed to have occurred on the
date  on which federal action, including but not limited to, administra-
tive, statutory or regulatory changes, materially reduces or  eliminates
New  York  state's  allocation  of  the federal temporary assistance for
needy families block grant, or materially reduces  the  ability  of  the
state  to  spend  federal  temporary assistance for needy families block
grant funds for the credit for  certain  household  and  dependent  care
services necessary for gainful employment or to apply state general fund
spending on the credit for certain household and dependent care services
necessary  for  gainful  employment  toward the temporary assistance for
needy families block grant maintenance of effort  requirement,  and  the
commissioner  of the office of temporary and disability assistance shall
certify the date of such event to the commissioner, the director of  the
division  of  the  budget, the speaker of the assembly and the temporary
president of the senate.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.