S T A T E   O F   N E W   Y O R K
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                                  394--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced  by  M.  of A. MAGNARELLI, COOK, ORTIZ, SCHIMMINGER -- Multi-
   Sponsored by -- M. of A. ABBATE, GUNTHER -- read once and referred  to
   the Committee on Ways and Means -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 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-B of the tax law is amended by  adding  a  new
 subdivision 52 to read as follows:
   52. 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.
                                                            LBD00560-03-7
              

 A. 394--A                           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.
   §  2.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) EMPLOYER DAY CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
 IT 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
 EMPLOYEES 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 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.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC)  EMPLOYER  DAY  CARE  CREDIT.  (1) A TAXPAYER SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY SECTION SIX HUNDRED ONE OF THIS  ARTI-
 CLE  TO  THE  EXTENT  OF  TWENTY PERCENT OF EXPENSES INCURRED DURING THE
 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 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. 394--A                           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 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.
   § 4. This act shall take effect immediately and shall apply to taxable
 years commencing on and after January 1, 2019.