BILL NUMBER: S5261
SPONSOR: ASHBY
 
TITLE OF BILL:
An act to amend the tax law, in relation to increasing the child and
dependent care tax credit
 
PURPOSE:
To increase the child and dependent care tax credit to reflect increases
in the cost of child and dependent care.
 
SUMMARY OF PROVISIONS:
Section 1 - amends Personal Income Tax Law to increase the maximum
amount of child and dependent care costs that are subject to the child
and dependent care tax credit commencing with tax year 2026.
Section 2 - Establishes the Effective date.
 
JUSTIFICATION:
Families with children or dependents often have to sacrifice to afford
for their care. The COVID-19 pandemic has exacerbated this issue, with
more children in need of reliable and quality care than ever before.
Families across the state are facing increased service costs as the
costs to providers has also escalated. Many families already find it
difficult to cover current costs and may be faced with the quandary of
whether it makes better economic sense in the short term for one parent
to abandon their career to stay home to care for children or other
dependents. This bill reflects the increasing costs of child and depend-
ent care by bringing the state tax credit in line with these cost
increases.
 
LEGISLATIVE HISTORY:
2023-24 - S.4875 - referred to Budget and Revenue
2021-2022 - S.5408 - referred to BUDGET & REVENUE
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take immediately.

Statutes affected:
S5261: 606 tax law, 606(c) tax law