S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3380
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2023
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 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 59 to read as follows:
   59. 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
 THE AVAILABILITY OF DAY CARE SERVICES FOR SUCH  CHILDREN  OR  WARDS,  IN
 PROVIDING SERVICES QUALIFYING FOR A CREDIT HEREUNDER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00311-01-3
 S. 3380                             2
              

 
   (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 (ee) to read as follows:
   (EE) 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
 (bbb) to read as follows:
   (BBB)  EMPLOYER  DAY  CARE  CREDIT.  (1) A TAXPAYER SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY SECTION SIX HUNDRED ONE OF  THIS  PART
 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-
 S. 3380                             3
 
 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, 2025.