S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3897
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2023
                                ___________
 
 Introduced  by  M. of A. FAHY -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to the child and dependent care
   credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Paragraph  1  of subsection (c) of section 606 of the tax
 law, as amended by section 1 of part M of chapter  63  of  the  laws  of
 2000, is amended to read as follows:
   (1)  A  taxpayer shall be allowed a credit as provided herein equal to
 the applicable percentage of the credit allowable under section  twenty-
 one  of  the  internal  revenue  code for the same taxable year (without
 regard to whether the taxpayer in fact claimed  the  credit  under  such
 section  twenty-one  for  such  taxable year). The applicable percentage
 shall be the sum of (i) twenty percent and (ii) a multiplier  multiplied
 by  a  fraction. For taxable years beginning in nineteen hundred ninety-
 six and nineteen hundred ninety-seven, the numerator  of  such  fraction
 shall  be the lesser of (i) four thousand dollars or (ii) fourteen thou-
 sand dollars less the New York adjusted gross  income  for  the  taxable
 year,  provided, however, the numerator shall not be less than zero. For
 the taxable year beginning in nineteen hundred ninety-eight, the numera-
 tor of such fraction shall  be  the  lesser  of  (i)  thirteen  thousand
 dollars or (ii) thirty thousand dollars less the New York adjusted gross
 income  for the taxable year, provided, however, the numerator shall not
 be less than zero. For taxable years beginning in nineteen hundred nine-
 ty-nine, the numerator of such fraction  shall  be  the  lesser  of  (i)
 fifteen  thousand  dollars  or  (ii) fifty thousand dollars less the New
 York adjusted gross income for the taxable year, provided, however,  the
 numerator shall not be less than zero. For taxable years beginning after
 nineteen  hundred  ninety-nine,  the numerator of such fraction shall be
 the lesser of (i) fifteen thousand dollars or (ii)  sixty-five  thousand
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03480-01-3
              

 A. 3897                             2
 
 dollars  less  the  New York adjusted gross income for the taxable year,
 provided, however, the numerator shall not be less than zero. The denom-
 inator of such fraction shall be four thousand dollars for taxable years
 beginning  in  nineteen  hundred ninety-six and nineteen hundred ninety-
 seven, thirteen thousand dollars for the taxable year beginning in nine-
 teen hundred ninety-eight, and  fifteen  thousand  dollars  for  taxable
 years  beginning  after  nineteen  hundred  ninety-eight. The multiplier
 shall be ten percent for taxable years  beginning  in  nineteen  hundred
 ninety-six,  forty  percent  for  taxable  years  beginning  in nineteen
 hundred ninety-seven, and eighty percent  for  taxable  years  beginning
 after  nineteen  hundred  ninety-seven.  Provided,  however, for taxable
 years beginning after nineteen hundred ninety-nine, for a  person  whose
 New York adjusted gross income is less than forty thousand dollars, such
 applicable  percentage  shall  be equal to (i) one hundred percent, plus
 (ii) ten percent multiplied by a fraction whose numerator shall  be  the
 lesser  of  (i)  fifteen thousand dollars or (ii) forty thousand dollars
 less the New York adjusted gross income for the taxable  year,  provided
 such  numerator shall not be less than zero, and whose denominator shall
 be fifteen thousand dollars.    PROVIDED,  HOWEVER,  FOR  TAXABLE  YEARS
 BEGINNING  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND TWENTY-THREE, THE
 APPLICABLE PERCENTAGE SHALL BE ONE HUNDRED TEN PERCENT FOR ALL NEW  YORK
 ADJUSTED  GROSS INCOMES UP TO FIFTY THOUSAND DOLLARS. Provided, further,
 that if the reversion event, as defined in this paragraph,  occurs,  the
 applicable  percentage  shall,  for taxable years ending on or after the
 date on which the reversion event  occurred,  be  determined  using  the
 rules  specified in this paragraph applicable to taxable years beginning
 in nineteen hundred ninety-nine. The reversion event shall be deemed  to
 have  occurred  on  the  date on which federal action, including but not
 limited to, administrative, statutory or regulatory changes,  materially
 reduces  or eliminates New York state's allocation of the federal tempo-
 rary assistance for needy families block grant,  or  materially  reduces
 the ability of the state to spend federal temporary assistance for needy
 families  block  grant  funds  for  the credit for certain household and
 dependent care services necessary for gainful  employment  or  to  apply
 state  general  fund  spending  on  the credit for certain household and
 dependent care services necessary  for  gainful  employment  toward  the
 temporary  assistance  for  needy  families  block  grant maintenance of
 effort requirement, and the commissioner of the office of temporary  and
 disability  assistance  shall  certify  the  date  of  such event to the
 commissioner, the director of the division of the budget, the speaker of
 the assembly and the temporary president of the senate.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2023.