S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    523
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by Sens. CARLUCCI, SAVINO -- 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00886-01-9

 S. 523                              2
 
 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
 NINETEEN, 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, 2019.