BILL NUMBER: S4696
SPONSOR: CLEARE
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a tax credit
for direct support professionals and direct care workers
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to create a new refundable tax credit for
direct care staff working with individuals with developmental disabili-
ties or a behavioral health diagnosis of up to five thousand dollars.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill would create a new subsection bbb of section 606
of the Tax Law. Direct Support Professionals and Direct Care Workers who
have an AGI of less than $50,000 would receive a refundable tax credit
for $5,000. For every $1,000 increase in salary received over $50,000,
an individual would receive $100 less. The tax credit is phased out at
$100,000.
Section 2 of this bill provides that the effective date shall take
effect immediately.
 
JUSTIFICATION:
There is a dire workforce crisis in the disabilities service delivery
system resulting in group home and day program closures. Voluntary
provider agencies are estimating a 25% staff vacancy rate and the state
operated system estimating a 12% staff vacancy rate. Without necessary
staff levels, agencies are mandating overtime to ensure continuity of
care for vulnerable individuals. Direct Support Professionals (DSPs)
provide supports and services to vulnerable individuals to help them
live enriched and fulfilling lives. The direct support professionals arc
the backbone of the service delivery system and provide care to over
130,000 individuals with disabilities.
For many years, the service delivery system for individuals with devel-
opmental disabilities and behavioral health diagnoses have been under-
funded by the state, resulting in low wages for the workers who are
expected to care for vulnerable individuals around the clock. According
to the 2019 National Core Indicators Staff Stability Survey report, the
annual turnover rate of DSPs in New York State is 36.2%. With the
recent investments by the State and Federal government in fiscal year
2021-2022, this legislation would recognize the hard work of DSPs who
take on this critical job by providing a refundable tax credit.
At the Senate Disabilities Committee hearing on workforce issues in
September 2021, OPWDD testified that in 2019, 11.5% of all staff hours
are overtime hours. Mandated overtime can cause increased stress, burn-
out, and can lead to mistakes or lower quality of care.
In combination with low pay, mandated overtime directly contributes to
the inability to recruit and retain direct support professionals. The
creation of a refundable tax credit would provide a significant pay
boost to almost all individuals working in the field. The increase in
take home pay would also assist with recruitment efforts, reducing the
need for mandated overtime.
 
LEGISLATIVE HISTORY:
2021-22: S.7643-A (Mannion) - Referred to Budget and Revenue.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S4696: 606 tax law