S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1341
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sens.  CARLUCCI,  AVELLA, KLEIN, SAVINO, VALESKY -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Investigations and Government Operations
 
 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-
 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.
              

                                                            LBD01823-01-7

 S. 1341                             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
 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
 SEVENTEEN,  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.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.