Increases the personal income tax credit for certain household and dependent care services necessary for gainful employment during tax years commencing on or after 2016.
STATE OF NEW YORK
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1661--A
2015-2016 Regular Sessions
IN SENATE
January 13, 2015
___________
Introduced by Sens. CARLUCCI, KLEIN, AVELLA, SAVINO, VALESKY -- read
twice and ordered printed, and when printed to be committed to the
Committee on Investigations and Government Operations -- recommitted
to the Committee on Investigations and Government Operations in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the tax law, in relation to the personal income tax
credit for certain household and dependent care services necessary for
gainful employment
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 1 of subsection (c) of section 606 of the tax
2 law, as amended by section 1 of part M of chapter 63 of the laws of
3 2000, is amended to read as follows:
4 (1) A taxpayer shall be allowed a credit as provided herein equal to
5 the applicable percentage of the credit allowable under section twenty-
6 one of the internal revenue code for the same taxable year (without
7 regard to whether the taxpayer in fact claimed the credit under such
8 section twenty-one for such taxable year). The applicable percentage
9 shall be the sum of (i) twenty percent and (ii) a multiplier multiplied
10 by a fraction. For taxable years beginning in nineteen hundred ninety-
11 six and nineteen hundred ninety-seven, the numerator of such fraction
12 shall be the lesser of (i) four thousand dollars or (ii) fourteen thou-
13 sand dollars less the New York adjusted gross income for the taxable
14 year, provided, however, the numerator shall not be less than zero. For
15 the taxable year beginning in nineteen hundred ninety-eight, the numera-
16 tor of such fraction shall be the lesser of (i) thirteen thousand
17 dollars or (ii) thirty thousand dollars less the New York adjusted gross
18 income for the taxable year, provided, however, the numerator shall not
19 be less than zero. For taxable years beginning in nineteen hundred nine-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02046-02-6
S. 1661--A 2
1 ty-nine, the numerator of such fraction shall be the lesser of (i)
2 fifteen thousand dollars or (ii) fifty thousand dollars less the New
3 York adjusted gross income for the taxable year, provided, however, the
4 numerator shall not be less than zero. For taxable years beginning after
5 nineteen hundred ninety-nine, the numerator of such fraction shall be
6 the lesser of (i) fifteen thousand dollars or (ii) sixty-five thousand
7 dollars less the New York adjusted gross income for the taxable year,
8 provided, however, the numerator shall not be less than zero. The
9 denominator of such fraction shall be four thousand dollars for taxable
10 years beginning in nineteen hundred ninety-six and nineteen hundred
11 ninety-seven, thirteen thousand dollars for the taxable year beginning
12 in nineteen hundred ninety-eight, and fifteen thousand dollars for taxa-
13 ble years beginning after nineteen hundred ninety-eight. The multiplier
14 shall be ten percent for taxable years beginning in nineteen hundred
15 ninety-six, forty percent for taxable years beginning in nineteen
16 hundred ninety-seven, and eighty percent for taxable years beginning
17 after nineteen hundred ninety-seven. Provided, however, for taxable
18 years beginning after nineteen hundred ninety-nine, for a person whose
19 New York adjusted gross income is less than forty thousand dollars, such
20 applicable percentage shall be equal to (i) one hundred percent, plus
21 (ii) ten percent multiplied by a fraction whose numerator shall be the
22 lesser of [(i)] (A) fifteen thousand dollars or [(ii)] (B) forty thou-
23 sand dollars less the New York adjusted gross income for the taxable
24 year, provided such numerator shall not be less than zero, and whose
25 denominator shall be fifteen thousand dollars. Provided, further, that
26 [if] for taxable years beginning on or after January first, two thousand
27 sixteen, the amount of credit calculated pursuant to this subsection
28 shall be increased by an additional fifty percent; provided, however,
29 that the credit provided for in this subsection shall not be available
30 to taxpayers who file jointly with adjusted gross incomes in excess of
31 three hundred fifty thousand dollars, to taxpayers who file as heads of
32 households with adjusted gross incomes in excess of three hundred thou-
33 sand dollars, and to taxpayers who file singly with adjusted gross
34 incomes in excess of one hundred seventy-five thousand dollars. If the
35 reversion event, as defined in this paragraph, occurs, the applicable
36 percentage shall, for taxable years ending on or after the date on which
37 the reversion event occurred, be determined using the rules specified in
38 this paragraph applicable to taxable years beginning in nineteen hundred
39 ninety-nine. The reversion event shall be deemed to have occurred on the
40 date on which federal action, including but not limited to, administra-
41 tive, statutory or regulatory changes, materially reduces or eliminates
42 New York state's allocation of the federal temporary assistance for
43 needy families block grant, or materially reduces the ability of the
44 state to spend federal temporary assistance for needy families block
45 grant funds for the credit for certain household and dependent care
46 services necessary for gainful employment or to apply state general fund
47 spending on the credit for certain household and dependent care services
48 necessary for gainful employment toward the temporary assistance for
49 needy families block grant maintenance of effort requirement, and the
50 commissioner of the office of temporary and disability assistance shall
51 certify the date of such event to the commissioner, the director of the
52 division of the budget, the speaker of the assembly and the temporary
53 president of the senate.
54 § 2. This act shall take effect immediately and shall apply to taxable
55 years beginning on or after January 1, 2016.
