BILL NUMBER: S5323

SPONSOR: WEIK
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing an additional
child and dependent care tax credit

 
PURPOSE:

To help ensure families are able to afford the costs associated with
child and dependent care by providing an additional tax credit for such
care.

 
SUMMARY OF PROVISIONS:

Section 1: Amends subsection (c) of section 606 of the Tax Law by adding
a new paragraph 1-c to provide that for taxable years beginning after
2021, in addition to the tax credits provided related to expenses for
household and dependent care services necessary for gainful employment,
there shall be an additional credit equal to 50% of the credit allowed,
not to exceed 100% of the credit allowable under section 21 of the
              

Internal Revenue Code.

Section 2: Provides the effective date.

 
JUSTIFICATION:

With many of New York's school districts utilizing remote learning
plans, many parents have been left scrambling to find-and afford-child
care. Unfortunately, this dramatically increased need for child care is
coming at a time when many families are struggling financially as a
result of the state-mandated shutdown. Child care costs are skyrocket-
ing, in some cases costing double that of tuition for state universi-
ties, and available options for child care are limited.

In light of this care crisis, this legislation would help families to
afford the care they need for children, or other dependents, by provid-
ing an additional tax credit equal to half the credit currently allowed
related to expenses for household and dependent care services necessary
for gainful employment. It is clear that now, more than ever, New York's
parents are in desperate need of financial relief to ensure they can
afford quality child care for their children to allow them to return to
the workforce. This bill aims to alleviate that burden and provide much
needed financial relief to New York families.

 
LEGISLATIVE HISTORY:

2022: S6912 Budget and Revenue

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately.