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A03707 Summary:

BILL NOA03707
 
SAME ASNo Same As
 
SPONSORCymbrowitz
 
COSPNSR
 
MLTSPNSR
 
Amd 210-B & 606, Tax L
 
Provides employers with a tax credit for expenditures to provide dependent care to adult dependents of employees of eligible expenditures for adults 60 or over or otherwise eligible; applies to corporate and noncorporate employers; also provides such a credit for employees or other taxpayers, to the extent not covered by the employer.
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A03707 Actions:

BILL NOA03707
 
01/30/2017referred to ways and means
01/03/2018referred to ways and means
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A03707 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3707
 
SPONSOR: Cymbrowitz
  TITLE OF BILL: 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   PURPOSE OR GENERAL IDEA OF BILL: Provides employers with a tax credit for care to adult dependents of employees and expenditures to provide dependent employees with a similar credit.   SUMMARY OF SPECIFIC PROVISIONS: Section 1: Amends Tax Law section 210-B to add a new subdivision 48 that creates a income tax credit of up to $1000 per adult care recipient to any employer who provides or pays for adult dependent care for the adult dependents of its employees during business hours. Section 2: Amends Tax Law Section 606 to add a new subsection (v) to allow a taxpayer credit against the tax imposed in an amount not in excess of $1000 for each adult day care recipient, which care must be provided in an eligible facility. Section 3 and 4 - The commissioners of taxation and finance and children and family services shall promulgate any and all rules and regulations and take any other measure necessary to implement this act on its effec- tive date.   JUSTIFICATION: An increasing number of New Yorkers are relying on adult care services to provide care for their adult dependents while they work outside the home. These services will become even more common as the number of senior citizens in New York continues to grow over the next several years. Just as child day care services have become an essential element of our state economy and help millions of New Yorkers to balance the needs of career and family, adult care services provide an equally important service to the growing population of New Yorkers who balance careers with caring for elderly or disabled relatives. This tax credit would help ease the financial burdens on caregivers and help ensure that dependent senior citizens receive the quality care and services they need. It would also encourage employers to offer adult care services to their employees. The bill amendment made to this bill in 2014 merely changes the subsections of law that need to be amended to conform with laws that were enacted in 2013.   PRIOR LEGISLATIVE HISTORY: 2005-06 A.2781 Ways & Means, No Senate 2007-08 A.5136 Ways & Means, No Senate 2009-10 A.4597 Ways & Means S.6222 Investigations & Government Operations 2011-12 A.4245.A Amend and recommit to Ways & Means Klein S.613-B Inves- tigations & Government Operations 2013-14 A.2170.A Ways & Means S.2263.A Investigations & Government Oper- ations 2015-16 A.1068 Referred to Ways & means S.3299 Referred to Investi- gations and Government Operations - Klein   EFFECTIVE DATE: This act shall take effect on the 1st of January next succeeding the date on which it shall have become a law and shall apply to taxable years commencing on and after such effective date; provided, however, that effective immediately, the commissioners of taxation and finance, and children and family services are authorized and directed to promul- gate any rules and regulations and take any other measures necessary to implement the provisions of this act on its effective date.
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A03707 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3707
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 30, 2017
                                       ___________
 
        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 49 to read as follows:
     3    49. 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.
                                                                   LBD06239-01-7

        A. 3707                             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  the

        A. 3707                             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  (xliii)  to  read  as
    54  follows:

        A. 3707                             4
 
     1  (xliii) Dependent elderly care       Amount of credit for
     2  credit under paragraph one of        employee elderly dependent care
     3  subsection (v)                       under subdivision forty-nine
     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; provided,
     8  however, that, effective immediately, the commissioners of taxation  and
     9  finance, and children and family services are authorized and directed to
    10  promulgate any rules and regulations, and take any other measures neces-
    11  sary to implement the provisions of this act on its effective date.
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