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A07209 Summary:

COSPNSRJacobson, Stirpe, D'Urso, Stern, Rosenthal D, Reyes, Weprin, Pichardo, DeStefano, Ashby, Lentol, Ramos, Woerner, Dickens, Cusick, Cruz, Lavine, Hunter, Miller ML, Romeo, Barron, Epstein, Brabenec, Joyner, Hevesi, Rosenthal L, Finch, Simon
Amd §606, Tax L
Provides a tax credit for qualified caregiving expenses.
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A07209 Actions:

04/12/2019referred to ways and means
01/08/2020referred to ways and means
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A07209 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Bronson
  TITLE OF BILL: An act to amend the tax law, in relation to providing a tax credit for qualified caregiving expenses; and to provide for the repeal of such provisions upon the expiration thereof   PURPOSE OR GENERAL IDEA OF BILL: This amends section 606 of the tax law by adding a new section (jjj) that provides a tax credit to qualified caregivers.   SUMMARY OF PROVISIONS: Section one defines taxable year; Section 2 defines qualified caregiving expense, qualified family member, qualified caregiver; Section 3 establishes taxable year and qualified expense; Section 4 establishes un-used portion of credit; Section 5 defines application process and approval; Section 6 defines aggregate amount of total credit and disbursement; Section 7 establishes any additional proofs; Section 8 provides for promulgation of regulations; Section 9 departmental reporting requirements Effective date.   JUSTIFICATION: A state caregiver tax credit would help more New Yorkers age in their communities by providing support through badly needed financial relief to unpaid family caregivers. While respite is essential to providing caregivers relief from their duties, caregivers also need help with the financial toll of caring for their loved ones. Caregiving expenses could include payments made by the caregiver for goods and services such as home health aides, adult day care, personal care attendants, homemaker services, respite care, health care equip- ment, home modifications, and transportation - all of which help aging adults to continue living independently in their home. This legislation will provide for a middle class family caregiver tax credit. The tax credit will be claimed by an individual with a gross annual income of $75,000 or less and a couple with a gross annual income of $150,000 or less. The credit proposed would not exceed $3,500, or fifty percent, of the total amount expended. This modest but well-de- served tax break for the middle class would save all New York taxpayers money in the long run by keeping older adults out of taxpayer-funded institutions across the state.   PRIOR LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: $35 million   EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2010.
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A07209 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     April 12, 2019
        Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
          tee on Ways and Means
        AN ACT to amend the tax law, in relation to providing a tax  credit  for
          qualified  caregiving  expenses; and to provide for the repeal of such
          provisions upon the expiration thereof

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  606  of  the  tax law is amended by adding a new
     2  subsection (jjj) to read as follows:
     3    (jjj) Caregiving tax credit. (1) For taxable  years  beginning  on  or
     4  after January first, two thousand twenty, a qualified caregiver shall be
     5  allowed  a  credit against the tax imposed by this article for a portion
     6  of the total purchase price paid for a qualified caregiving  expense  by
     7  such  a qualified caregiver for performing caregiving duties provided to
     8  a qualified family member that resided within this state.
     9    (2) For purposes of this section (A)  "qualified  caregiving  expense"
    10  means  payments  made  by the qualified caregiver for goods and services
    11  which are provided to or for the benefit of the qualifying family member
    12  or to assist the qualified caregiver in caring for the qualifying family
    13  member. Such expenses include, but are not limited to, home health agen-
    14  cy services, adult  day  care,  companionship  services,  personal  care
    15  attendant services, homemaker services, respite care, health care equip-
    16  ment, assistive devices and supplies, home modification, transportation,
    17  legal or financial services, and assistive technology.
    18    (B) "qualified family member" means an individual who is: (i) at least
    19  eighteen years of age during a taxable year; (ii) a resident of New York
    20  state;  (iii)  requires  assistance  with at least one activity of daily
    21  living (ADL), as certified by a licensed health care  practitioner;  and
    22  (iv)  is  an  individual  who qualifies as a dependent, spouse, domestic
    23  partner as defined by section four of  the  workers'  compensation  law,
    24  sibling, partner, parent or other relation by blood or marriage, includ-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 7209                             2
     1  ing an in-law, grandparent, grandchild, step-parent, aunt, uncle, niece,
     2  or nephew of the qualified caregiver.
     3    (C)  "qualified caregiver" means an individual who is a New York state
     4  resident taxpayer for the taxable year. In the case of a  joint  return,
     5  the term includes the individual and the individual's spouse. The quali-
     6  fied  caregiver  claiming  the credit must have a federal adjusted gross
     7  income of seventy-five thousand dollars or less for  an  individual  and
     8  one  hundred  fifty  thousand  dollars  or  less for a couple, and incur
     9  uncompensated expenses directly related to the care of a qualified fami-
    10  ly member. In addition, qualified caregivers must provide care to one or
    11  more eligible qualified family members during the taxable year,  and  be
    12  eligible  to  receive  a credit against the family caregiver's state tax
    13  liability for the taxable year.
    14    (3) The credit  established  pursuant  to  this  subsection  shall  be
    15  allowed  for  the taxable year in which the qualified caregiver incurred
    16  the qualified caregiving expense.  The  credit  established  under  this
    17  subsection  shall not exceed fifty percent of the total amount expended,
    18  and shall not exceed three thousand five hundred dollars.
    19    (4) If the allowable amount of the credit exceeds the taxes  otherwise
    20  due  under  this  article for the taxable year, the unused amount of the
    21  credit is waived, and may not be refunded, carried forward or  otherwise
    22  used to offset taxes.
    23    (5)  Eligible  qualified caregivers shall apply for the credit through
    24  the department. The commissioner, in consultation with the  commissioner
    25  of  the  department  of  health  and  the director of the office for the
    26  aging, shall issue a certification for an approved  application  to  the
    27  taxpayer  that states the amount of the credit allocated to the taxpayer
    28  and the allocation year.
    29    (6) The aggregate amount  of  tax  credits  allowed  pursuant  to  the
    30  authority  of  this subsection shall be thirty-five million dollars each
    31  year during the period two thousand twenty through two thousand  twenty-
    32  two.  Such aggregate amount of credits shall be allocated by the depart-
    33  ment on a first come first serve basis in order of priority  based  upon
    34  the  date  of  filing  an  application for allocation of credit with the
    35  department. Once the credits allocated exceed the limit  established  in
    36  this  subsection,  the  commissioner shall cease to allocate and certify
    37  tax credits to taxpayers.
    38    (7) The commissioner may require a qualified taxpayer to  furnish  the
    39  following  information  in  support of his or her claim for credit under
    40  this subsection: household adjusted gross income, the name of the eligi-
    41  ble family member and  his  or  her  identifying  information  including
    42  social security numbers, and all other information which may be required
    43  by the commissioner to determine the credit.
    44    (8)  The  commissioner,  after consulting with the commissioner of the
    45  department of health and the director of the office for the aging, shall
    46  by October thirty-first, two thousand  nineteen  promulgate  regulations
    47  necessary  and appropriate to carry out the purposes of this subsection.
    48  Notwithstanding any other provisions to the contrary in the state admin-
    49  istrative procedure act, such rules and regulations may be adopted on an
    50  emergency basis if necessary to  meet  such  October  thirty-first,  two
    51  thousand nineteen deadline.
    52    (9)  The department shall submit to the governor, the temporary presi-
    53  dent of the senate, and the speaker of the assembly an annual report  by
    54  February first of each year evaluating the effectiveness of the caregiv-
    55  ing  tax  credit provided by this subsection. Such report shall be based
    56  on data available from the application filed with the department for any

        A. 7209                             3
     1  caregiving credits. Notwithstanding any provision of law to the  contra-
     2  ry, the information contained in the report shall be public information.
     3  The  report shall include recommendations for changes in the calculation
     4  or administration of the credit proposed by the department, in consulta-
     5  tion  with  the  department of health and the office for the aging, that
     6  are deemed useful and appropriate.
     7    § 2. This act shall take effect immediately and shall apply to taxable
     8  years commencing on  and  after  January  1,  2020;  provided  that  the
     9  provisions  of  this act shall expire and be deemed repealed on December
    10  31, 2022.
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