BILL NUMBER: S322
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the tax law, in relation to employer-provided child care
credits
 
PURPOSE OR GENERAL IDEA OF BILL::
To provide more affordable and accessible dependent care options for New
York families
 
SUMMARY OF PROVISIONS::
Section 1: Amends Section 44 of the Tax Law to include qualified in-home
and back up care expenditures paid or incurred with respect to the
taxpayer's employees working in the state in the employer-provided child
care credit criteria; sets forth a definition for backup care, which
shall mean care provided to a dependent when an employee's regular care
cannot be utilized; establishes the ways that a taxpayer may provide
backup care; establishes that a backup child care benefit provider shall
mean a third party vendor that offers services that provide employees
options for locating and/or arranging for the provision of back-up care;
establishes that in-home care expenditures means expenses for childcare
provided in an employee's home or through a third-party vendor, and paid
back up childcare or paid backup child care benefit shall mean an
employee benefit consisting of the employer paying for all or a portion
of the backup childcare for an employee's dependent.
Section 2. Establishes the effective date
 
JUSTIFICATION::
The national caregiving crisis existed well before the COVID-19 pandemic
but has been greatly exacerbated by it. The pandemic has forced us to
shift how we think about and value care as a state, and to reimagine how
we provide care to those most in need.
New York is a national leader in supporting families and improving labor
participation rates among women. As we recover from the pandemic and
navigate the new normal it only makes sense that New York continues to
lead the nation in reimagining care by modernizing its employer-provided
child care tax credit.
This bill would modernize the employer-provided child care tax credit by
making qualified in-home and back up care eligible for the employer-pro-
vided child care credit, further benefiting families and the overall New
York economy by closing child care gaps, reducing the cost of care for
families, increasing access to care by providing more flexible and equi-
table options, and increasing labor force participation.
New York has made historic investments in child care to ensure New York-
ers receive the care assistance they need. However, even with the major
investments in New York's care infrastructure, there remain too many
families who fall through the care "gaps."
The families that require flexible in-home and backup care options
include those that make too much to qualify for federal or state subsi-
dized care, but not enough to cover the total cost of care out of pock-
et, and households with adults that work non-traditional or shift hours.
Additionally, 64% of New York families live in a child care desert with
almost no care options. One of the best tools these families have to
increase access to and help reduce the cost of care is smart, thought-
ful, and effective tax policy that recognizes and responds to these
challenges.
This bill seeks to close the gaps by encouraging employers to offer
additional subsidized care options (in addition to the care options
currently allowed under the existing credit) so their employees have
more flexible and equitable care benefit options that meet their care-
giving needs whether they live in a child care desert, work non-tradi-
tional or shift hours, require reliable back up care as a safety net
when there are disruptions in pre-arranged care, or are adapting to new
hybrid work models.
With hybrid models of work likely here to stay and the rise of decen-
tralized workforces across industries, companies and employees alike are
looking for more flexible care benefits like in-home and backup care.
New York's tax policy should be updated to reflect the new needs of New
York's families.
 
PRIOR LEGISLATIVE HISTORY::
2022: S9067 - Referred to Investigations and Government Operations
 
FISCAL IMPLICATIONS::
TBD
 
EFFECTIVE DATE::
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2024.