NY State Senate Bill 2015-S6714

Senate Bill S6714

2015-2016 Legislative Session

Establishes a childcare advance which enables certain taxpayers to defer payment of a portion of their tax liability

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 09, 2016	referred to investigations and government operations

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2015-S6714 (ACTIVE) - Details

See Assembly Version of this Bill:: A9699
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §608, Tax L
Versions Introduced in 2017-2018 Legislative Session:: S2038, A4943

2015-S6714 (ACTIVE) - Summary

Establishes a childcare advance which enables certain taxpayers to defer payment of a portion of their tax liability.

2015-S6714 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6714

 TITLE OF BILL :

An act to amend the tax law, in relation to establishing a childcare
advance which enables certain taxpayers to defer payment of a portion
of their tax liability

 PURPOSE :

Establishes the Childcare Advance, a deferral of state taxes to help
families afford the costs of childcare.

 SUMMARY OF PROVISIONS :

New section 608 establishes the Childcare Advance, a deferral of state
taxes to help families afford the costs of childcare.

Section 608(a) permits resident taxpayers with eligible
"employment-related" expenses, as defined in Internal Revenue Code
("IRC") Section 21(b) (2) for care of a dependent under age 5 to defer
payment of their tax liability for that taxable year by the amount of
those expenses, but not to exceed two thousand dollars.

Section 608(b) provides for repayment of deferrals over a ten year
period commencing when the taxpayer is no longer taking the deferral,

and in all cases requires repayment of each year's deferral over a
ten-year period starting not later than five years after that
deferral. Repayment is to be made without interest.

Section 608(c) provides for repayment in cases where a taxpayer moves
to a residence outside New York which does not maintain tax
reciprocity with New York.

Section 608(d) provides for notice from the Department to taxpayers
who have taken the deferral established in Section (a) above of their
deferred liability, tax year in which repayment will begin, and an
estimate of the amount for which taxpayer will be liable once
eligibility expires.

Section 608(f) directs regulations to permit the repayment of
deferrals through tax withholding and to address repayment in cases of
divorce.

 EXISTING LAW :

New

 JUSTIFICATION :

Childcare costs are one of the greatest expenses for families with
young children in New York State. New York families face some of the
highest childcare costs in the nation, including average annual costs
from $10,140 to $14,144 per year for an infant and $9,776 to $11,700
for a four-year-old.

Childcare costs exceed housing costs for many families and consume a
significant percentage of a family's income. And these costs come at a
critical time for families, when the care provided to children has the
greatest impact on their long-term development and when many young
families are just starting out and working to make other investments.

At the same time, affordable childcare is critical for working
families, and can have positive impacts on children's health and
long-term development and women's participation in the workforce,
among other benefits.
By allowing families to defer up to $2,000 of their state tax
liability each year while young children are in childcare, the
"Childcare Advance" would make childcare substantially more affordable
for thousands of New York families and result in millions per year in
savings and financial returns.

 LEGISLATIVE HISTORY :

New

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
Tax year 2016.

2015-S6714 (ACTIVE) - Bill Text download pdf

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

                                  6714

                            I N  S E N A T E

                            February 9, 2016
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation  to  establishing  a  childcare
  advance  which enables certain taxpayers to defer payment of a portion
  of their tax liability

  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 608 to read
as follows:
  S 608. CHILDCARE ADVANCE. (A) BEGINNING IN THE TAX YEAR  TWO  THOUSAND
SIXTEEN,  ANY  RESIDENT TAXPAYER WHO, IN A TAXABLE YEAR, HAS "EMPLOYMENT
RELATED EXPENSES" AS  DEFINED  IN  THE  INTERNAL  REVENUE  CODE  SECTION
21(B)(2)  FOR  A  DEPENDENT  UNDER AGE FIVE AND WOULD BE ELIGIBLE TO USE
THOSE EXPENSES AS THE BASIS FOR  CALCULATING  A  CREDIT  UNDER  INTERNAL
REVENUE  CODE SECTION 21 (WITHOUT REGARD TO WHETHER THE TAXPAYER IN FACT
CLAIMED THE CREDIT UNDER SUCH SECTION FOR SUCH TAXABLE YEAR), MAY  DEFER
PAYMENT  OF THEIR TAX LIABILITY FOR THAT TAXABLE YEAR UNDER THIS ARTICLE
BY THE AMOUNT OF THOSE EXPENSES BUT NOT TO EXCEED TWO THOUSAND DOLLARS.
  (B) ANY TAXPAYER WHO DEFERS TAX LIABILITY  UNDER  SUBDIVISION  (A)  OF
THIS  SECTION SHALL BE LIABLE: (I) ONCE THE TAXPAYER IS NO LONGER TAKING
THE DEFERRAL, FOR THE FULL AMOUNT PREVIOUSLY DEFERRED DIVIDED INTO EQUAL
PAYMENTS OVER TEN YEARS, EXCEPT  THAT  (II)  IN  ANY  FUTURE  YEARS  THE
TAXPAYER  TAKES THE DEFERRAL, THAT TAXPAYER IS LIABLE ONLY FOR ONE-TENTH
OF EACH DEFERRAL TAKEN FIVE OR MORE YEARS  PRIOR  UNTIL  EACH  OF  THOSE
DEFERRALS  IS  REPAID.  AT  NO  POINT  SHALL  THE TAXPAYER BE LIABLE FOR
AMOUNTS PREVIOUSLY REPAID.  REPAYMENT SHALL BE MADE WITHOUT INTEREST.
  (C) ANY TAXPAYER WHO DEFERS TAX LIABILITY  UNDER  SUBDIVISION  (A)  OF
THIS SECTION, AND WHO MOVES TO A RESIDENCE OUTSIDE THE STATE OF NEW YORK
IN  A  STATE, TERRITORY OR COUNTRY WHICH DOES NOT MAINTAIN EFFECTIVE AND
APPLICABLE RECIPROCITY WITH THE STATE OF NEW YORK, SHALL BE  LIABLE  FOR
THE  ENTIRE  AMOUNT DEFERRED ON THE TAX FILING FOR THE TAX YEAR IN WHICH
SUCH CHANGE OF RESIDENCE OCCURS, BUT SUBJECT TO APPROVAL OF THE  DEPART-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13881-01-6

S. 6714                             2

MENT  SHALL  BE  DIRECTED TO REPAY THAT LIABILITY THROUGH A PAYMENT PLAN
APPROVED BY THE DEPARTMENT.
  (D)  AT  THE  END  OF EVERY TAX YEAR, THE DEPARTMENT SHALL NOTIFY EACH
TAXPAYER WHO HAS DEFERRED TAX LIABILITY UNDER SUBDIVISION  (A)  OF  THIS
SECTION OF THE TOTAL AMOUNT OF THEIR DEFERRED LIABILITY, THE TAX YEAR IN
WHICH  REPAYMENT WILL BEGIN, AND AN ESTIMATE OF THE AMOUNT FOR WHICH THE
TAXPAYER WILL BE LIABLE EACH YEAR ONCE THE ELIGIBILITY EXPIRES.
  (E) NOTHING IN THIS SECTION SHALL PREVENT  A  TAXPAYER  FROM  REPAYING
ACCUMULATED LIABILITY EARLIER THAN THE SCHEDULE SET FORTH IN SUBDIVISION
(B)  OF  THIS  SECTION,  OR  TAKING LESS THAN THE TOTAL AMOUNT ALLOWABLE
UNDER SUBDIVISION (A) OF THIS SECTION IN ANY GIVEN TAX YEAR.
  (F) THE DEPARTMENT MAY PROVIDE FOR THE REPAYMENT  OF  DEFERRALS  UNDER
THIS  SECTION  TO BE MADE THROUGH PAYROLL WITHHOLDING IN ACCORDANCE WITH
SECTION SIX HUNDRED SEVENTY-ONE  OF  THIS  ARTICLE,  AND  SHALL  ADDRESS
REPAYMENT IN CASES OF DIVORCE.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and  after  January  1,  2016  and
shall apply to tax years commencing on and after such date.

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Senate Bill S6714

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Daniel L. Squadron