S T A T E O F N E W Y O R K
________________________________________________________________________
8984
I N S E N A T E
April 5, 2024
___________
Introduced by Sen. ROLISON -- read twice and ordered printed, and when
printed to be committed to the Committee on Children and Families
AN ACT to amend the social services and the tax law, in relation to
establishing the child care program capital improvement tax credit
program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Article 6 of the social services law is amended by adding a
new title 13 to read as follows:
TITLE 13
CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT PROGRAM
SECTION 458-P. SHORT TITLE.
458-Q. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION.
458-R. DEFINITIONS.
458-S. ELIGIBILITY CRITERIA.
458-T. APPLICATION AND APPROVAL PROCESS.
458-U. CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT.
458-V. POWERS AND DUTIES OF THE COMMISSIONER.
458-W. MAINTENANCE OF RECORDS.
458-X. REPORTING.
458-Y. CAP ON TAX CREDIT.
§ 458-P. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS
THE "CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT PROGRAM ACT".
§ 458-Q. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS
HEREBY FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF
PUBLIC POLICY, TO SUPPORT INCREASED ACCESS TO QUALITY CHILD CARE FOR NEW
YORK FAMILIES. THE CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT
PROGRAM IS CREATED TO PROVIDE FINANCIAL ASSISTANCE TO NEW YORK'S CHILD
CARE PROVIDERS TO FACILITATE THE ENHANCEMENT, EXPANSION, AND IMPROVEMENT
OF ACCESS TO QUALITY CHILD CARE.
§ 458-R. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE:
1. "CERTIFICATE OF TAX CREDIT" SHALL MEAN THE DOCUMENT ISSUED TO A
BUSINESS ENTITY BY THE OFFICE AFTER THE OFFICE HAS VERIFIED THAT THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13858-01-3
S. 8984 2
BUSINESS ENTITY HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS
TITLE. THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CREDIT
UNDER THIS TITLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT TO SECTION
FOUR HUNDRED FIFTY-EIGHT-U OF THIS TITLE.
2. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF THE OFFICE OF CHIL-
DREN AND FAMILY SERVICES.
3. "OFFICE" SHALL MEAN THE OFFICE OF CHILDREN AND FAMILY SERVICES.
4. "QUALIFIED CHILD CARE PROGRAM CAPITAL COSTS" SHALL MEAN COSTS
INCURRED FROM THE IMPROVEMENT, EXPANSION, ENHANCEMENT, OR TO GENERALLY
INCREASE THE SAFETY OF CHILD CARE PROGRAMS, INCLUDING COSTS FOR: (I)
MATERIALS REQUIRED FOR EXPANSION PROJECTS; (II) BUILDING CONSTRUCTION
AND RETROFITS; (III) INSTALLATION OF AIR PURIFYING EQUIPMENT; AND (IV)
OTHER COSTS AS DETERMINED BY THE OFFICE TO BE ELIGIBLE UNDER THIS TITLE.
§ 458-S. ELIGIBILITY CRITERIA. 1. TO BE ELIGIBLE FOR A TAX CREDIT
UNDER THE CHILD CARE CAPITAL IMPROVEMENT TAX CREDIT PROGRAM, A BUSINESS
ENTITY SHALL:
(A) BE A CHILD CARE PROGRAM FOR WHICH A LICENSE OR REGISTRATION TO
OPERATE SUCH PROGRAM HAS BEEN ISSUED BY THE OFFICE PURSUANT TO SECTION
THREE HUNDRED NINETY OF THIS ARTICLE; AND
(B) HAVE AT LEAST TWO THOUSAND DOLLARS IN QUALIFYING CHILD CARE
PROGRAM IMPROVEMENT CAPITAL COSTS.
2. A CHILD CARE PROGRAM SHALL BE IN SUBSTANTIAL COMPLIANCE WITH ANY
PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS RELATED TO THE
ENTITY'S BUSINESS SECTOR OR OTHER LAWS AND REGULATIONS AS DETERMINED BY
THE COMMISSIONER. IN ADDITION, A CHILD CARE PROGRAM MAY NOT OWE PAST DUE
STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE BUSINESS ENTITY IS MAKING
PAYMENTS AND COMPLYING WITH AN APPROVED BINDING PAYMENT AGREEMENT
ENTERED INTO WITH THE TAXING AUTHORITY.
§ 458-T. APPLICATION AND APPROVAL PROCESS. 1. A CHILD CARE PROGRAM
SHALL SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER.
2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES AND A TIMEFRAME FOR
CHILD CARE FACILITIES TO SUBMIT APPLICATIONS. AS PART OF THE APPLICA-
TION, EACH CHILD CARE PROGRAM SHALL:
(A) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED BY THE COMMIS-
SIONER OF THEIR ELIGIBILITY;
(B) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE
CHILD CARE PROGRAM'S TAX INFORMATION WITH THE OFFICE; PROVIDED, HOWEVER,
THAT ANY INFORMATION SHARED AS A RESULT OF THIS PROGRAM SHALL NOT BE
AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFOR-
MATION LAW;
(C) ALLOW THE OFFICE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND
RECORDS THE OFFICE MAY REQUIRE TO MONITOR COMPLIANCE;
(D) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL
COMPLIANCE WITH ALL EMERGENCY ORDERS OR PUBLIC HEALTH REGULATIONS
CURRENTLY REQUIRED OF SUCH ENTITY, AND LOCAL, AND STATE TAX LAWS; AND
(E) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE OFFICE
RELEVANT TO THIS ARTICLE.
3. AFTER REVIEWING A CHILD CARE PROGRAM'S COMPLETED FINAL APPLICATION
AND DETERMINING THAT THE BUSINESS ENTITY MEETS THE ELIGIBILITY CRITERIA
AS SET FORTH IN THIS ARTICLE, THE OFFICE MAY ISSUE TO THAT CHILD CARE
PROGRAM A CERTIFICATE OF TAX CREDIT.
4. THE COMMISSIONER SHALL ESTABLISH AN ANNUAL APPLICATION DEADLINE AND
PROVIDE ALL APPLICABLE DEADLINE AND APPLICATION MATERIALS ON ITS
WEBSITE.
§ 458-U. CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT. 1. A BUSI-
NESS ENTITY IN THE CHILD CARE FACILITY CAPITAL IMPROVEMENT TAX CREDIT
S. 8984 3
PROGRAM THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SECTION FOUR HUNDRED
FIFTY-EIGHT-S OF THIS TITLE MAY BE ELIGIBLE TO CLAIM A CREDIT EQUAL TO
FIFTY PERCENT OF ITS QUALIFIED CHILD CARE PROGRAM CAPITAL COSTS AS
DEFINED IN SUBDIVISION FOUR OF SECTION FOUR HUNDRED FIFTY-EIGHT-R OF
THIS TITLE; PROVIDED, HOWEVER, THAT SUCH CREDIT SHALL NOT BE LESS THAN
ONE THOUSAND DOLLARS.
2. A BUSINESS ENTITY, INCLUDING A PARTNERSHIP, LIMITED LIABILITY
COMPANY AND SUBCHAPTER S CORPORATION, MAY NOT RECEIVE A CREDIT IN EXCESS
OF FIFTY THOUSAND DOLLARS UNDER THIS PROGRAM.
3. THE CREDIT SHALL BE ALLOWED AS PROVIDED IN SECTION FORTY-NINE,
SUBDIVISION SIXTY OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (PPP) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW.
4. A BUSINESS ENTITY MAY CLAIM THE TAX CREDIT IN THE TAXABLE YEAR THAT
INCLUDES THE DATE THE CERTIFICATE OF TAX CREDIT WAS ISSUED BY THE OFFICE
PURSUANT TO SUBDIVISION THREE OF SECTION FOUR HUNDRED FIFTY-EIGHT-T OF
THIS TITLE.
§ 458-V. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER
MAY PROMULGATE REGULATIONS ESTABLISHING AN APPLICATION PROCESS AND
ELIGIBILITY CRITERIA, THAT SHALL BE APPLIED CONSISTENT WITH THE PURPOSES
OF THIS TITLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET
FORTH IN SECTION FOUR HUNDRED FIFTY-EIGHT-Y OF THIS TITLE WHICH,
NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRA-
TIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS.
2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO ELIGIBLE BUSINESSES. SUCH CERTIFICATE
SHALL CONTAIN SUCH INFORMATION AS REQUIRED BY THE DEPARTMENT OF TAXATION
AND FINANCE.
3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY
APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY BUSI-
NESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SECTION FOUR HUNDRED FIFTY-EIGHT-S OF THIS TITLE OR FOR
FAILING TO MEET THE REQUIREMENTS SET FORTH IN SUBDIVISION ONE OF SECTION
FOUR HUNDRED FIFTY-EIGHT-T OF THIS TITLE.
§ 458-W. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN
THE PROGRAM SHALL KEEP ALL RELEVANT RECORDS FOR THEIR DURATION OF
PROGRAM PARTICIPATION FOR AT LEAST THREE YEARS.
§ 458-X. REPORTING. EACH BUSINESS ENTITY PARTICIPATING IN THIS PROGRAM
SHALL SUBMIT A PERFORMANCE REPORT TO THE OFFICE AT A TIME PRESCRIBED IN
REGULATIONS BY THE COMMISSIONER. THE COMMISSIONER SHALL, ON OR BEFORE
APRIL FIRST, TWO THOUSAND TWENTY-FOUR AND EVERY QUARTER THEREAFTER UNTIL
PROGRAM FUNDS ARE FULLY EXPENDED, SUBMIT A REPORT TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE
CHAIR OF THE SENATE FINANCE COMMITTEE, AND THE CHAIR OF THE ASSEMBLY
WAYS AND MEANS COMMITTEE, SETTING FORTH THE ACTIVITIES UNDERTAKEN BY THE
PROGRAM. SUCH REPORT SHALL INCLUDE, BUT NOT NECESSARILY BE LIMITED TO,
THE FOLLOWING IN EACH REPORTING PERIOD TO THE EXTENT SUCH INFORMATION IS
AVAILABLE: THE TOTAL NUMBER OF PARTICIPANTS APPROVED AND THE REGION IN
WHICH THE BUSINESS IS LOCATED; THE TOTAL AMOUNT OF PAYMENTS DISBURSED
AND TAX CREDITS CLAIMED, AND THE AVERAGE AMOUNT OF PAYMENTS DISBURSED
AND TAX CREDITS CLAIMED; THE NAMES OF PAYMENT RECIPIENTS AND TAX CREDITS
CLAIMED; AND SUCH OTHER INFORMATION AS THE COMMISSIONER DETERMINES
NECESSARY AND APPROPRIATE TO EFFECTUATE THE PURPOSE OF THE PROGRAM. SUCH
REPORTS SHALL, AT THE SAME TIME, BE INCLUDED ON THE OFFICE'S WEBSITE.
S. 8984 4
§ 458-Y. CAP ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER PURSUANT TO THIS
TITLE MAY NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS.
§ 2. The tax law is amended by adding a new section 49 to read as
follows:
§ 49. CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO
OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO
THE PROVISIONS REFERENCED IN SUBDIVISION (F) OF THIS SECTION. THE AMOUNT
OF THE CREDIT IS EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SECTION FOUR
HUNDRED FIFTY-EIGHT-U OF THE SOCIAL SERVICES LAW. NO COST OR EXPENSE
PAID OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCU-
LATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED
UNDER THIS CHAPTER.
(B) ELIGIBILITY. TO BE ELIGIBLE FOR THE CHILD CARE PROGRAM CAPITAL
IMPROVEMENT TAX CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIF-
ICATE OF TAX CREDIT BY THE OFFICE OF CHILDREN AND FAMILY SERVICES PURSU-
ANT TO SUBDIVISION THREE OF SECTION FOUR HUNDRED FIFTY-EIGHT-S OF THE
SOCIAL SERVICES LAW, WHICH CERTIFICATE SHALL SET FORTH THE AMOUNT OF THE
CREDIT THAT MAY BE CLAIMED FOR THE TAXABLE YEAR. THE TAXPAYER SHALL BE
ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT
FOR THAT TAXABLE YEAR. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP,
MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S
CORPORATION THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT SHALL BE
ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP,
LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION.
(C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF
RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
THE OFFICE OF CHILDREN AND FAMILY SERVICES.
(D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP-
TER, EMPLOYEES OF THE OFFICE OF CHILDREN AND FAMILY SERVICES AND THE
DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE:
(1) INFORMATION DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT
TO A TAXPAYER'S ELIGIBILITY TO PARTICIPATE IN THE CHILD CARE PROGRAM
CAPITAL IMPROVEMENT TAX CREDIT PROGRAM;
(2) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED OR CLAIMED
PURSUANT TO THIS SECTION AND TAXPAYERS THAT ARE APPLYING FOR THE CREDIT
OR THAT ARE CLAIMING THE CREDIT; AND
(3) INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM FORMS
SUBMITTED TO THE OFFICE AND APPLICATIONS FOR ADMISSION INTO THE CHILD
CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT PROGRAM. EXCEPT AS PROVIDED
IN PARAGRAPH TWO OF THIS SUBDIVISION, ALL INFORMATION EXCHANGED BETWEEN
THE OFFICE OF CHILDREN AND FAMILY SERVICES AND THE DEPARTMENT SHALL NOT
BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM OF
INFORMATION LAW.
(E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE
OFFICE OF CHILDREN AND FAMILY SERVICES UNDER TITLE THIRTEEN OF THE
SOCIAL SERVICES LAW IS REVOKED BY SUCH OFFICE, THE AMOUNT OF CREDIT
DESCRIBED IN THIS SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT
REVOCATION SHALL BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY
SUCH REVOCATION BECOMES FINAL.
(F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 60;
(2) ARTICLE 22: SECTION 606, SUBSECTION (PPP).
S. 8984 5
§ 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 60 to read as follows:
60. CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION FORTY-NINE OF THIS CHAPTER, AGAINST THE TAXES
IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR THE TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
§ 4. Section 606 of the tax law is amended by adding a new subsection
(ppp) to read as follows:
(PPP) CHILD CARE PROGRAM CAPITAL IMPROVEMENT TAX CREDIT. (1) ALLOWANCE
OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION FORTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED
BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
PAID THEREON.
§ 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (li) to read as
follows:
(LI) CHILD CARE PROGRAM AMOUNT OF CREDIT UNDER
CAPITAL UNDER IMPROVEMENT SUBDIVISION SIXTY OF SECTION TWO
SUBSECTION (PPP) HUNDRED TEN-B
§ 6. This act shall take effect immediately.
