S T A T E   O F   N E W   Y O R K
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                                  4194

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2009
                               ___________

Introduced by M. of A. RAMOS -- Multi-Sponsored by -- M. of A. BACALLES,
  CAHILL,  COLTON,  CONTE,  CROUCH, KOLB, OAKS, THIELE, TOWNSEND -- read
  once and referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to providing tax deductions for
  expenditures made to purchase, construct, renovate  or  remodel  child
  care facilities

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

  Section 1. The tax law is amended by adding a  new  section  188-a  to
read as follows:
  S  188-A.  DEDUCTION FOR CREATION OR IMPROVEMENT OF CHILD CARE FACILI-
TIES. A TAXPAYER OPERATING A CHILD CARE FACILITY WITHIN THE STATE PRIMA-
RILY FOR THE CHILDREN OF SUCH TAXPAYER'S EMPLOYEES, SHALL BE  ALLOWED  A
DEDUCTION  FROM  TAXABLE  INCOME  FOR  ANY  EXPENDITURE MADE TO ACQUIRE,
CONSTRUCT, RENOVATE OR REMODEL SUCH CHILD CARE FACILITY OR THE EQUIPMENT
THEREIN. THE DEDUCTION CREATED BY THIS SECTION SHALL  BE  DEDUCTED  OVER
TWENTY-FOUR  MONTHS  COMMENCING  IN THE MONTH IN WHICH SUCH ACQUISITION,
CONSTRUCTION,  RENOVATION  OR  REMODELING  IS  PUT  INTO  SERVICE.   THE
DEDUCTION  PROVIDED BY THIS SECTION SHALL BE IN LIEU OF ANY OTHER ALLOW-
ANCE FOR THE EXHAUSTION OF SUCH PROPERTY USED IN  A  TRADE  OR  BUSINESS
HELD  FOR THE PRODUCTION OF INCOME, INCLUDING A REASONABLE ALLOWANCE FOR
OBSOLESCENCE PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OR ONE  HUNDRED
EIGHTY-EIGHT OF THE INTERNAL REVENUE CODE.
  S  2. Subdivision 9 of section 208 of the tax law is amended by adding
two new paragraphs (r) and (s) to read as follows:
  (R) A TAXPAYER OPERATING A CHILD CARE FACILITY FOR  PROFIT,  SHALL  BE
ALLOWED  A  DEDUCTION FROM ENTIRE NET INCOME FOR ANY EXPENDITURE MADE TO
ACQUIRE, CONSTRUCT, RENOVATE OR REMODEL SUCH CHILD CARE FACILITY OR  THE
EQUIPMENT  THEREIN.  THE  DEDUCTION  CREATED  BY THIS PARAGRAPH SHALL BE
DEDUCTED OVER SIXTY MONTHS COMMENCING IN THE MONTH IN WHICH SUCH  ACQUI-
SITION, CONSTRUCTION, RENOVATION OR REMODELING IS PUT INTO SERVICE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07674-01-9
              

A. 4194                             2

  (S) A TAXPAYER OPERATING A CHILD CARE FACILITY WITHIN THE STATE PRIMA-
RILY  FOR  THE CHILDREN OF SUCH TAXPAYER'S EMPLOYEES, SHALL BE ALLOWED A
DEDUCTION FROM THE  ENTIRE  NET  INCOME  FOR  ANY  EXPENDITURE  MADE  TO
ACQUIRE,  CONSTRUCT, RENOVATE OR REMODEL SUCH CHILD CARE FACILITY OR THE
EQUIPMENT  THEREIN.  THE  DEDUCTION  CREATED  BY THIS PARAGRAPH SHALL BE
DEDUCTED OVER TWENTY-FOUR MONTHS COMMENCING IN THE MONTH IN  WHICH  SUCH
ACQUISITION, CONSTRUCTION, RENOVATION OR REMODELING IS PUT INTO SERVICE.
THE  DEDUCTION  PROVIDED BY THIS PARAGRAPH SHALL BE IN LIEU OF ANY OTHER
ALLOWANCE FOR THE EXHAUSTION OF SUCH PROPERTY USED IN A TRADE  OR  BUSI-
NESS HELD FOR THE PRODUCTION OF INCOME, INCLUDING A REASONABLE ALLOWANCE
FOR  OBSOLESCENCE  PURSUANT  TO  SECTION  ONE HUNDRED SIXTY-SEVEN OR ONE
HUNDRED EIGHTY-EIGHT OF THE INTERNAL REVENUE CODE.
  S 3. Subsection (c) of section 612 of the tax law is amended by adding
two new paragraphs 17 and 18 to read as follows:
  (17) ANY EXPENDITURE MADE BY A TAXPAYER OPERATING A CHILD CARE FACILI-
TY FOR PROFIT, TO ACQUIRE, CONSTRUCT, RENOVATE  OR  REMODEL  SUCH  CHILD
CARE  FACILITY  OR  THE EQUIPMENT THEREIN. THE DEDUCTION CREATED BY THIS
PARAGRAPH SHALL BE DEDUCTED OVER SIXTY MONTHS COMMENCING IN THE MONTH IN
WHICH SUCH ACQUISITION, CONSTRUCTION, RENOVATION OR  REMODELING  IS  PUT
INTO SERVICE.
  (18) ANY EXPENDITURE MADE BY A TAXPAYER OPERATING A CHILD CARE FACILI-
TY  WITHIN  THE  STATE  PRIMARILY  FOR  THE  CHILDREN OF SUCH TAXPAYER'S
EMPLOYEES, TO ACQUIRE, CONSTRUCT, RENOVATE OR REMODEL  SUCH  CHILD  CARE
FACILITY  OR  THE EQUIPMENT THEREIN. THE DEDUCTION CREATED BY THIS PARA-
GRAPH SHALL BE DEDUCTED OVER TWENTY-FOUR MONTHS COMMENCING IN THE  MONTH
IN WHICH SUCH ACQUISITION, CONSTRUCTION, RENOVATION OR REMODELING IS PUT
INTO  SERVICE. THE DEDUCTION PROVIDED BY THIS PARAGRAPH SHALL BE IN LIEU
OF ANY OTHER ALLOWANCE FOR THE EXHAUSTION OF SUCH  PROPERTY  USED  IN  A
TRADE OR BUSINESS HELD FOR THE PRODUCTION OF INCOME, INCLUDING A REASON-
ABLE   ALLOWANCE  FOR  OBSOLESCENCE  PURSUANT  TO  SECTION  ONE  HUNDRED
SIXTY-SEVEN OR ONE HUNDRED EIGHTY-EIGHT OF THE INTERNAL REVENUE CODE.
  S 4. Section 1453 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) A TAXPAYER OPERATING A CHILD CARE FACILITY WITHIN THE STATE PRIMA-
RILY FOR THE CHILDREN OF SUCH TAXPAYER'S EMPLOYEES, SHALL BE  ALLOWED  A
DEDUCTION  FROM  ENTIRE  NET INCOME FOR ANY EXPENDITURE MADE TO ACQUIRE,
CONSTRUCT, RENOVATE OR REMODEL SUCH CHILD CARE FACILITY OR THE EQUIPMENT
THEREIN. THE DEDUCTION CREATED BY THIS  SUBDIVISION  SHALL  BE  DEDUCTED
OVER  TWENTY-FOUR  MONTHS COMMENCING IN THE MONTH IN WHICH SUCH ACQUISI-
TION, CONSTRUCTION, RENOVATION OR REMODELING IS PUT  INTO  SERVICE.  THE
DEDUCTION  PROVIDED  BY  THIS  SUBDIVISION SHALL BE IN LIEU OF ANY OTHER
ALLOWANCE FOR THE EXHAUSTION OF SUCH PROPERTY USED IN A TRADE  OR  BUSI-
NESS HELD FOR THE PRODUCTION OF INCOME, INCLUDING A REASONABLE ALLOWANCE
FOR  OBSOLESCENCE  PURSUANT  TO  SECTION  ONE HUNDRED SIXTY-SEVEN OR ONE
HUNDRED EIGHTY-EIGHT OF THE INTERNAL REVENUE CODE.
  S 5.  This act shall take effect immediately.