STATE OF NEW YORK ________________________________________________________________________ 5292 2019-2020 Regular Sessions IN ASSEMBLY February 8, 2019 ___________ Introduced by M. of A. CYMBROWITZ -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing business fran- chise and personal income tax credits for employers which provide care for the elderly dependents of their employees during work hours and establishing a personal income tax credit for the provision of care to the elderly dependent of a taxpayer during work hours The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 53 to read as follows: 3 53. Employee elderly dependent care credit. (a) Allowance of credit. 4 There shall be allowed as a credit against the tax imposed by this arti- 5 cle for the amount, not to exceed one thousand dollars for each employee 6 dependent for which adult day care services are provided, actually 7 expended by the taxpayer providing or paying another to provide depend- 8 ent care for the taxpayer's employees' dependents during the employees' 9 work hours, which care must be provided in an eligible facility, as 10 described in paragraph (c) of this subdivision. Credit is applied to 11 the cost of any contract executed by the taxpayer for another provider 12 of services to provide dependent care; or, if the taxpayer elects to 13 provide dependent care itself, to expenses incurred for: dependent care 14 staff, learning and recreational materials and equipment, and the 15 construction and maintenance of a facility. This cost is net of any 16 reimbursement. The credit shall not be allowed for any expenses which 17 are paid by an employee and serve as the basis for a personal income tax 18 credit. The credits allowed under this subdivision shall not be used by 19 any corporation other than the corporation actually qualifying for the 20 credits. 21 (b) Carryover. Credit may be carried forward for the five successive 22 years if the amount allowable as credit exceeds income tax liability in EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09354-01-9A. 5292 2 1 a tax year; however, thereafter, if the amount allowable as a credit 2 exceeds the tax liability, the amount of excess shall not be refundable 3 or carried forward to any other taxable year. 4 (c) Eligible facility. An eligible facility must have an average daily 5 enrollment for the taxable year of no less than six persons sixty years 6 of age or older and be licensed or certified according to the applicable 7 law or regulations; or must serve five or fewer persons age sixty or 8 older in a family child care/elder care home approved by the office of 9 children and family services for participation in the United States 10 department of agriculture child and adult nutrition program; or must 11 serve adult relatives of employees in either a community-based elder 12 care facility or a facility at the employment site; or must serve adult 13 dependents having physical, emotional, or mental disabilities in either 14 a community-based facility or a facility at the employment site. 15 (d) Certification. Taxpayers shall be certified as eligible for the 16 tax credit by the office of children and family services for programs 17 serving elderly adults and by the commissioner for programs serving 18 other adult dependents. 19 (e) Additional credit. In addition to the credit allowed pursuant to 20 paragraph (a) of this subdivision, there shall be allowed an additional 21 credit, subject to the provisions of paragraph (b) of this subdivision, 22 for additional eligible expenses assumed or incurred by the employer 23 which increase the quality, availability, and affordability of dependent 24 care in the community used by employees during the employees' work 25 hours. The commissioner shall promulgate rules and regulations defining 26 the eligibility of expenses and the amount of the credit allowable 27 therefor. The commissioner shall further provide an additional credit 28 for administrative costs incurred in complying with the foregoing 29 provisions. 30 § 2. Section 606 of the tax law is amended by adding a new subsection 31 (v) to read as follows: 32 (v) Dependent elderly care credit. (1) Employer. (A) Allowance of 33 credit. A taxpayer shall be allowed a credit against the tax imposed by 34 this article for the amount, not to exceed one thousand dollars for each 35 employee dependent for which adult day care services are provided, actu- 36 ally expended by the taxpayer providing or paying another to provide 37 dependent care for the taxpayer's employees' dependents during the 38 employees' work hours, which care must be provided in an eligible facil- 39 ity, as described in subparagraph (C) of this paragraph. Credit is 40 applied to the cost of any contract executed by the taxpayer for another 41 entity to provide dependent care; or, if the taxpayer elects to provide 42 dependent care itself, to expenses incurred for: dependent care staff, 43 learning and recreational materials and equipment, and the construction 44 and maintenance of a facility. This cost is net of any reimbursement. 45 The credit shall not be allowed for any expenses which are paid by 46 employees and serve as the basis for a personal income tax credit. The 47 credits allowed under this paragraph shall not be used by any employer 48 other than the employer actually qualifying for the credits. 49 (B) Carryover. Credit may be carried forward for the five successive 50 years if the amount allowable as credit exceeds income tax liability in 51 a tax year; however, thereafter, if the amount allowable as a credit 52 exceeds the tax liability, the amount of excess shall not be refundable 53 or carried forward to any other taxable year. 54 (C) Eligible facility. An eligible facility must have an average 55 daily enrollment for the taxable year of no less than six persons sixty 56 years of age or older and be licensed or certified according to theA. 5292 3 1 applicable law or regulations; or must serve five or fewer persons age 2 sixty or older in a family child care/elder care home approved by the 3 office of children and family services for participation in the United 4 States department of agriculture child and adult nutrition program; or 5 must serve adult relatives of employees in either a community-based 6 elder care facility or a facility at the employment site; or must serve 7 adult dependents having physical, emotional, or mental disabilities in 8 either a community-based facility or a facility at the employment site. 9 (D) Certification. Taxpayers shall be certified as eligible for the 10 tax credit by the office of children and family services for programs 11 serving elderly adults and by the commissioner for programs serving 12 other adult dependents. 13 (E) Additional credit. In addition to the credit allowed pursuant to 14 subparagraph (A) of this paragraph, there shall be allowed an additional 15 credit, subject to the provisions of subparagraph (B) of this paragraph, 16 for additional eligible expenses assumed or incurred by the employer 17 which increase the quality, availability, and affordability of dependent 18 care in the community used by employees during the employees' work 19 hours. The commissioner shall promulgate rules and regulations defining 20 the eligibility of expenses and the amount of the credit allowable 21 therefor. The commissioner shall further provide an additional credit 22 for administrative costs incurred in complying with the foregoing 23 provisions. 24 (2) Individual. (A) Allowance of credit. A taxpayer shall be allowed 25 a credit against the tax imposed by this article for the amount, not to 26 exceed one thousand dollars for each elderly dependent of the taxpayer 27 for which adult day care services are provided, actually expended by the 28 taxpayer as payment to an eligible facility for providing dependent care 29 during the taxpayer's work hours, which care must be provided in an 30 eligible facility, as described in subparagraph (C) of this paragraph. 31 This cost is net of any reimbursement. The credit shall not be allowed 32 for any expenses which are paid by an employer of the taxpayer and serve 33 as the basis for a tax credit for such employer. The credits allowed 34 under this paragraph shall not be used by any taxpayer other than the 35 taxpayer actually qualifying for the credits. 36 (B) Carryover. Credit may be carried forward for the five successive 37 years if the amount allowable as credit exceeds income tax liability in 38 a tax year; however, thereafter, if the amount allowable as a credit 39 exceeds the tax liability, the amount of excess shall not be refundable 40 or carried forward to any other taxable year. 41 (C) Eligible facility. An eligible facility must have an average 42 daily enrollment for the taxable year of no less than six persons sixty 43 years of age or older and be licensed or certified according to the 44 applicable law or regulations; or must serve five or fewer persons age 45 sixty or older in a family child care/elder care home approved by the 46 office of children and family services for participation in the United 47 States department of agriculture child and adult nutrition program; or 48 must serve adult relatives of employees in either a community-based 49 elder care facility or a facility at the employment site; or must serve 50 adult dependents having physical, emotional, or mental disabilities in 51 either a community-based facility or a facility at the employment site. 52 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 53 of the tax law is amended by adding a new clause (xliv) to read as 54 follows:A. 5292 4 1 (xliv) Dependent elderly care Amount of credit for 2 credit under paragraph one of employee elderly dependent care 3 subsection (v) under subdivision fifty-three 4 of section two hundred ten-B 5 § 4. This act shall take effect on the first of January next succeed- 6 ing the date on which it shall have become a law and shall apply to 7 taxable years commencing on and after such effective date. Effective 8 immediately, the addition, amendment and/or repeal of any rule or regu- 9 lation necessary for the implementation of this act on its effective 10 date are authorized to be made and completed on or before such effective 11 date.