BILL NUMBER: S170
SPONSOR: RAMOS
 
TITLE OF BILL:
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
 
PURPOSE:
This legislation creates a tax incentive-program for employer-supported
day care services for the preschool and primary school-age children of
its employees.
 
SUMMARY OF PROVISIONS:
Section 1 Amends Section 210 of the Tax Law by adding a new subdivision
52 by adding employer day care credit.
Section 2 Amends Section 1511 of the Tax Law by adding a new subdivision
(dd) by adding employer day care credit.
Section 3 Amends Section 606 of the Tax Law by adding a new subsection
(ccc) by adding employer day care credit.
Section 4 Establishes the effective date.
 
JUSTIFICATION:
These changes in the tax law establish a twenty percent tax credit
program for employers who provide certain daycare services to their
employees. The tax credit will be provided for daycare services for
preschool and primary school-age children, including:
1. Employer contracts with third-party day care providers;
2. Employer provision of direct reimbursement to employees for child
care expenses;
3. Operational costs of employer-provided on-site or near-site day care
services; or
4. Expenditures incurred for the training of employees of third-party
providers who render daycare services to their employees. In order to
meet the guidelines of this tax program, all of the daycare services
utilized must meet the governing standards of the State Department of
Social Services and the Human Resources Administration for New York
City. In addition, this bill provides that no credit will be given to
employers who discriminate against their employees on the basis of race,
creed, religion, sex, or national origin, as a determining factor in
making daycare services for their employees, which will undoubtedly
encourage individuals to enter the work-force.
These aforementioned propensities will subsequently contribute to the
enhancement of the New York State economy.
 
LEGISLATIVE HISTORY:
2024: S9459 (Ramos) Referred to Budget and Revenue
2021-22: S3890 (Kennedy) Referred to Budget and Revenue / A1434A
(Magnarelli) referred to ways and means
 
FISCAL IMPACT:
To be determined
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on and after January 1, 2027.

Statutes affected:
S170: 210-B tax law, 1511 tax law, 606 tax law