S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3204

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 23, 2009
                               ___________

Introduced  by  M. of A. CHRISTENSEN, COOK, ORTIZ, SCHIMMINGER -- Multi-
  Sponsored by -- M. of A. ABBATE, CLARK, GUNTHER, JACOBS,  JOHN,  PHEF-
  FER,  SWEENEY  --  read once and referred to the Committee on Ways and
  Means

AN ACT to amend the tax law, in relation to  providing  credits  against
  the  tax imposed upon employers providing certain day care services to
  the children of its employees

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Section  210  of the tax law is amended by adding a new
subdivision 41 to read as follows:
  41. EMPLOYER DAY CARE CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY THIS ARTICLE TO THE EXTENT OF TWENTY  PERCENT
OF THE EXPENSES INCURRED DURING A TAXABLE YEAR BY THE TAXPAYER IN MAKING
AVAILABLE  DAY  CARE SERVICES TO THE CHILDREN AND WARDS OF EMPLOYEES AND
IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD PARTY PROVID-
ER RENDERING SUCH SERVICES. A TAXPAYER MAY MAKE SUCH SERVICES  AVAILABLE
AS FOLLOWS:
  (1) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (2)  BY  REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY THE EMPLOYEE
FOR SUCH SERVICES; OR
  (3) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN NO EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT  OF  TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (B)  (1)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-
GION, SEX, NATIONAL ORIGIN, AGE, DISABILITY, OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (2) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR  WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT UPON

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05488-01-9

              

A. 3204                             2

THE AVAILABILITY OF DAY CARE SERVICES FOR SUCH  CHILDREN  OR  WARDS,  IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (C)  NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (D)  NO  SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE FACILITY OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN WHO ARE SUBJECT TO THE PROVISIONS OF  THE  EDUCATION  LAW  WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 2. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST  THE TAX IMPOSED BY THIS ARTICLE TO THE EXTENT OF TWENTY PERCENT
OF THE EXPENSES INCURRED DURING THE TAXABLE  YEAR  BY  THE  TAXPAYER  IN
MAKING  AVAILABLE DAY CARE SERVICES TO THE CHILDREN AND WARDS OF EMPLOY-
EES AND IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD PARTY
PROVIDER RENDERING SUCH SERVICES. A  TAXPAYER  MAY  MAKE  SUCH  SERVICES
AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B)  BY  REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY THE EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN NO EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT  OF  TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (2)  (A)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-
GION,  SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (B) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT  UPON
THE  AVAILABILITY  OF  DAY  CARE SERVICES FOR SUCH CHILDREN OR WARDS, IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE  FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE  FACILITY  OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN  WHO  ARE  SUBJECT  TO THE PROVISIONS OF THE EDUCATION LAW WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 3. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (y) to read as follows:
  (Y) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST  THE TAX IMPOSED BY THIS ARTICLE TO THE EXTENT OF TWENTY PERCENT
OF THE EXPENSES INCURRED DURING THE TAXABLE  YEAR  BY  THE  TAXPAYER  IN
MAKING  AVAILABLE DAY CARE SERVICES TO THE CHILDREN AND WARDS OF EMPLOY-
EES AND IN TRAINING PERSONS EMPLOYED BY THE TAXPAYER OR BY A THIRD PARTY
PROVIDER RENDERING SUCH SERVICES. A  TAXPAYER  MAY  MAKE  SUCH  SERVICES
AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B)  BY  REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY THE EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN NO EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT  OF  TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.

A. 3204                             3

  (2)  (A)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-
GION,  SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (B)  A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF DAY CARE
DEPENDENT EMPLOYEES FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT
IS CONTINGENT UPON THE AVAILABILITY OF DAY CARE SERVICES FOR SUCH  CHIL-
DREN OR WARDS, IN PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3)  NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4)  NO  SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE FACILITY OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN WHO ARE SUBJECT TO THE PROVISIONS OF  THE  EDUCATION  LAW  WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S  4. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
IT AGAINST THE TAX IMPOSED BY SECTION SIX HUNDRED ONE OF THIS ARTICLE TO
THE EXTENT OF TWENTY PERCENT OF EXPENSES  INCURRED  DURING  THE  TAXABLE
YEAR  BY THE TAXPAYER IN MAKING AVAILABLE DAY CARE SERVICES TO THE CHIL-
DREN AND WARDS OF EMPLOYEES AND IN  TRAINING  PERSONS  EMPLOYED  BY  THE
TAXPAYER OR BY A THIRD PARTY PROVIDER RENDERING SUCH SERVICES. A TAXPAY-
ER MAY MAKE SUCH SERVICES AVAILABLE AS FOLLOWS:
  (A) PURSUANT TO A WRITTEN CONTRACT WITH A THIRD PARTY PROVIDER;
  (B)  BY  REIMBURSING AN EMPLOYEE FOR EXPENSES INCURRED BY THE EMPLOYEE
FOR SUCH SERVICES; OR
  (C) BY PROVIDING ON-SITE OR NEAR-SITE DAY CARE SERVICES.
  IN NO EVENT SHALL THE AMOUNT OF SUCH CREDIT EXCEED THE AMOUNT  OF  TAX
OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY TAXABLE YEAR.
  (2)  (A)  NO  SUCH  CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO UNFAIRLY
DISCRIMINATES AGAINST ANY EMPLOYEE ON THE BASIS OF  RACE,  CREED,  RELI-
GION,  SEX, NATIONAL ORIGIN, AGE, DISABILITY OR MARITAL STATUS IN MAKING
AVAILABLE DAY CARE SERVICES.
  (B) A TAXPAYER MAY GIVE A PREFERENCE TO CHILDREN OR WARDS OF EMPLOYEES
FOR WHOM OBTAINING OR MAINTAINING GAINFUL EMPLOYMENT IS CONTINGENT  UPON
THE  AVAILABILITY  OF  DAY  CARE SERVICES FOR SUCH CHILDREN OR WARDS, IN
PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
  (3) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER UNLESS THE  FACILITY
OR PROGRAM RENDERING DAY CARE SERVICES IS LICENSED BY AND SUBJECT TO THE
REGULATIONS  OF  THE  DEPARTMENT  OF  FAMILY  ASSISTANCE  OR  THE  HUMAN
RESOURCES ADMINISTRATION GOVERNING DAY CARE FACILITIES IN NEW YORK CITY.
  (4) NO SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER IF THE  FACILITY  OR
PROGRAM RENDERING DAY CARE SERVICES ADMITS, DURING REGULAR SCHOOL HOURS,
CHILDREN  WHO  ARE  SUBJECT  TO THE PROVISIONS OF THE EDUCATION LAW WITH
REGARD TO COMPULSORY SCHOOL ATTENDANCE.
  S 5. This act shall take effect immediately and shall apply to taxable
years commencing on and after January 1, 2010.