BILL NUMBER: S455
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the tax law, in relation to providing a tax credit for
qualified caregiving expenses; and to provide for the repeal of such
provisions upon the expiration thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
This amends section 606 of the tax law by adding a new section (iii)
that provides a tax credit to qualified caregivers.
 
SUMMARY OF PROVISIONS:
Section 1 defines taxable year;
Section 2 defines qualified caregiving expense, qualified family member,
qualified caregiver;
Section 3 establishes taxable year and qualified expense;
Section 4 establishes un-used portion of credit;
Section 5 defines application process and approval;
Section 6 defines aggregate amount of total credit and disbursement;
Section 7 establishes any additional proofs;
Section 8 provides for promulgation of regulations;
Section 9 departmental reporting requirements Effective date.
 
JUSTIFICATION:
A state caregiver tax credit would help more New Yorkers age in their
communities by providing support through badly needed financial relief
to unpaid family caregivers. While respite is essential to providing
caregivers relief from their duties, caregivers also need help with the
financial toll of caring for their loved ones.
Caregiving expenses could include payments made by the caregiver for
goods and services such as home health aides, adult day care, personal
care attendants, homemaker services, respite care, health care equip-
ment, home modifications, and transportation - all of which help aging
adults to continue living independently in their home.
This legislation will provide for a middle class family caregiver tax
credit. The tax credit will be claimed by an individual with a gross
annual income of $75,000 or less and a couple with a gross annual income
of $150,000 or less. The credit proposed would not exceed $3,500, or
fifty percent, of the total amount expended. This modest but well-de-
served tax break for the middle class would save all New York taxpayers
money in the long run by keeping older adults out of taxpayer-funded
institutions across the state.
 
PRIOR LEGISLATIVE HISTORY:
2021-2022 - S.620 (May) / A.6932 (Kim)
2019-2020 - S.5100 (May) / A.7209 (Bronson)
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
$35 million
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on and after January 1, 2022.

Statutes affected:
S455: 606 tax law