Senate Bill S1051

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1051
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- 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  the  credit  for  certain
   household and dependent care services necessary for gainful employment
   known as the child and dependent care credit

   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-
 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

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

                                                            LBD04067-01-7

 S. 1051                             2
 
 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 denom-
 inator 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 nine-
 teen hundred ninety-eight, and  fifteen  thousand  dollars  for  taxable
 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)  fifteen thousand dollars or (ii) forty thousand 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,  HOWEVER,  FOR  TAXABLE  YEARS
 BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THE APPLI-
 CABLE PERCENTAGE SHALL BE ONE HUNDRED TEN PERCENT FOR ALL INCOMES UP  TO
 SIXTY-FIVE  THOUSAND  DOLLARS,  FIFTY  PERCENT  FOR  ALL INCOMES BETWEEN
 SIXTY-FIVE THOUSAND DOLLARS AND TWO HUNDRED THOUSAND DOLLARS, AND TWENTY
 PERCENT FOR ALL INCOMES ABOVE TWO HUNDRED  THOUSAND  DOLLARS.  Provided,
 further,  that  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,  administrative, statutory or regulatory changes,
 materially reduces or eliminates New  York  state's  allocation  of  the
 federal  temporary  assistance  for needy families block grant, or mate-
 rially 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.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.