STATE OF NEW YORK
________________________________________________________________________
3471
2025-2026 Regular Sessions
IN SENATE
January 27, 2025
___________
Introduced by Sens. HELMING, ASHBY, BORRELLO, CANZONERI-FITZPATRICK,
GRIFFO, STEC, TEDISCO, WEBER -- read twice and ordered printed, and
when printed to be committed to the Committee on Investigations and
Government Operations
AN ACT to amend the tax law, in relation to establishing business fran-
chise, personal income and insurance franchise tax credits for employ-
er provided or sponsored child care
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 50 to read
2 as follows:
3 § 50. Employer provided or sponsored child care. (a) Definitions. For
4 the purposes of this section, the following terms shall have the follow-
5 ing meanings:
6 (1) "Cost of operation" means any reasonable direct operational costs
7 incurred by an employer as a result of providing employer provided or
8 employer sponsored child care facilities; provided, however, that such
9 term shall exclude the cost of any property that is qualified child care
10 property.
11 (2) "Employer" means a taxpayer who is an employer upon whom taxes are
12 imposed pursuant to article nine-A, twenty-two or thirty-three of this
13 chapter.
14 (3) "Employer provided" means child care offered on the premises of an
15 employer.
16 (4) "Employer sponsored" means a contractual arrangement with a child
17 care facility that is paid for by an employer.
18 (5) "Premises of the employer" means a workplace premises of an
19 employer, within the state, providing the child care, or by one employer
20 providing the child care in the event that the child care property is
21 owned jointly or severally by such employer and one or more employers;
22 provided, however, that if such workplace premises are impracticable or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07357-01-5
S. 3471 2
1 otherwise unsuitable for the on-site location of a child care facility,
2 as determined by the office of children and family services, or in
3 cities of one million or more, the city department of health and mental
4 hygiene, such facility may be located within a reasonable distance of
5 the premises of the employer.
6 (6) "Qualified child care property" includes, but is not limited to,
7 amounts expended on land acquisition, improvements, buildings, and
8 building improvements and furniture, fixtures, and equipment, and means
9 all real property and tangible personal property purchased or acquired
10 on or after January first, two thousand twenty-five, or which property
11 is first placed in service on or after January first, two thousand twen-
12 ty-five, for use exclusively in the construction, expansion, improvement
13 or operation of an employer provided child care facility, but only if:
14 (A) the facility is licensed or commissioned by the office of children
15 and family services pursuant to section three hundred ninety of the
16 social services law, or in cities of one million or more, the city
17 department of health and mental hygiene pursuant to article forty-seven
18 of the health code of the city of New York.
19 (B) at least ninety-five percent of the children who use the facility
20 are children of employees of:
21 (i) the employer and other employers in the event that the child care
22 property is owned jointly or severally by the employer and one or more
23 other employers; or
24 (ii) a corporation that is a member of the taxpayer's "affiliated
25 group" within the meaning of section 1504(a) of the Internal Revenue
26 Code.
27 (C) the employer has not previously claimed any tax credit for the
28 cost of operation for such qualified child care property placed in
29 service prior to taxable years beginning on or after January first, two
30 thousand twenty-five.
31 (b) Allowance of credit. A tax credit against the taxes imposed pursu-
32 ant to articles nine-A, twenty-two and thirty-three of this chapter
33 shall be granted to an employer who provides or sponsors child care for
34 employees. Such tax credit shall be in an amount equal to ten percent of
35 the cost of operation incurred by the employer, and such credit shall
36 not exceed ten thousand dollars less any amounts paid by employees
37 during the taxable year.
38 (c) Conditions and limitations. The tax credit allowed under subdivi-
39 sion (b) of this section shall be subject to the following conditions
40 and limitations:
41 (1) the employer shall certify to the department the names of the
42 employees, the name of the child care provider, the number of children
43 served by care subsidized via this tax credit, the number of children
44 receiving care who are excluded from the tax credit pursuant to para-
45 graph three of this subdivision, and such other information as may be
46 required by the department to ensure that credits are granted only to
47 employers who provide or sponsor approved child care in accordance with
48 this section;
49 (2) only in the case of employer sponsored care, the average credit
50 utilized per child shall not exceed the market rate per child estab-
51 lished by the office of children and family services for the social
52 services district within which child care is provided; and
53 (3) the employer shall not receive any tax credit for care provided to
54 the children of any employee whose annual household income exceeds two
55 hundred thousand dollars. The department shall establish rules and
56 accounting measures to ensure that any costs of care provided to employ-
S. 3471 3
1 ees with annual household incomes exceeding two hundred thousand dollars
2 are itemized by the employer and excluded from the tax credit provided
3 to employers pursuant to this section.
4 (d) Election. In addition to the tax credit provided under subdivision
5 (b) of this section, an employer shall be granted a credit against the
6 tax for the taxable year in which the employer first places in service
7 qualified child care property. The credit shall equal twenty percent of
8 the cost of all qualified child care property purchased or acquired by
9 the employer and first placed in service during a taxable year. Such
10 credit shall not exceed twenty thousand dollars.
11 (e) Carryover. The tax credit allowed under subdivision (d) of this
12 section shall be subject to the following conditions and limitations:
13 (1) any such credit claimed in any taxable year but not used in such
14 taxable year may be carried forward for three years from the close of
15 such taxable year. The sale, merger, acquisition or bankruptcy of any
16 employer shall not create new eligibility for the credit in any succeed-
17 ing taxpayer;
18 (2) in no event shall the amount of any such tax credit, including any
19 carryover of such credit from a prior taxable year, exceed fifty percent
20 of the employer's tax liability as determined without regard to any
21 other credits; and
22 (3) for every year in which an employer claims such credit, the
23 employer shall attach a schedule, whose form and structure shall be
24 established by the department, to the employer's tax return setting
25 forth the following information with respect to such tax credit:
26 (A) a description of the child care facility;
27 (B) the amount of qualified child care property acquired during the
28 taxable year and the cost of such property;
29 (C) the amount of tax credit claimed for the taxable year;
30 (D) the amount of qualified child care property acquired in prior
31 taxable years and the cost of such property;
32 (E) any tax credit utilized by the employer in prior taxable years;
33 (F) the amount of tax credit carried over from prior years;
34 (G) the amount of tax credit utilized by the employer in the current
35 taxable year;
36 (H) the amount of tax credit to be carried forward to subsequent tax
37 years; and
38 (I) a description of any recapture event occurring during the taxable
39 year, a calculation of the resulting reduction in tax credits allowable
40 for the recapture year and future taxable years, and a calculation of
41 the resulting increase in tax for the recapture year.
42 (f) Recapture.
43 (1) If the taxpayer disposes of the qualified child care property, or
44 if such property ceases to be a qualified child care property except
45 for:
46 (A) any transfer by reason of death;
47 (B) any transfer between spouses or incident to divorce;
48 (C) any transaction to which section 381(a) of the internal revenue
49 code applies;
50 (D) any change in the form of conducting the employer's trade or busi-
51 ness so long as the property is retained by such trade or business as
52 qualified child care property and the employer retains a substantial
53 interest in such trade or business; or
54 (E) any accident or casualty, the taxpayer's tax imposed by this arti-
55 cle for the taxable year in which such disposition or cessation occurs
S. 3471 4
1 shall be increased by the recapture portion of the credit allowed under
2 paragraph two of this subdivision for all prior taxable years.
3 (2) For purposes of paragraph one of this subdivision, the recapture
4 portion shall reduce the credit otherwise allowable under subdivision
5 (d) of this section, but shall not, at any point, reduce the tax credit
6 below zero. Any excess of the recapture amount shall result in an equiv-
7 alent increase in the tax imposed under this section.
8 (g) Rules. The commissioner shall promulgate any rules and regulations
9 necessary to implement and administer the provisions of this section.
10 (h) Cross-references. For the application of the credit provided in
11 this section, see the following provisions of this chapter:
12 (1) article 9-A: section 210-B, subdivision 61;
13 (2) article 22: section 606, subsection (bbb);
14 (3) article 33: section 1511, subdivision (ff).
15 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
16 sion 61 to read as follows:
17 61. Employer provided or sponsored child care credit. (a) Allowance of
18 credit. A taxpayer will be allowed a credit, to be computed as provided
19 in section fifty of this chapter, against the taxes imposed by this
20 article.
21 (b) Application of credit. The credit allowed under this subdivision
22 for any taxable year will not reduce the tax due for such year to less
23 than the amount prescribed in paragraph (d) of subdivision one of
24 section two hundred ten of this article. However, if the amount of cred-
25 it allowed under this subdivision for any taxable year reduces the tax
26 to such amount or if the taxpayer otherwise pays tax based on the fixed
27 dollar minimum amount, any amount of credit thus not deductible in such
28 taxable year will be treated as an overpayment of tax to be credited or
29 refunded in accordance with the provisions of section one thousand
30 eighty-six of this chapter. Provided, however, the provisions of
31 subsection (c) of section one thousand eighty-eight of this chapter
32 notwithstanding, no interest will be paid thereon.
33 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
34 of the tax law is amended by adding a new clause (lii) to read as
35 follows:
36 (lii) EmployerAmount of credit
37 provided or sponsoredunder subdivision
38 child care creditsixty-one of
39 under subsectionsection two hundred
40 (bbb)ten-B
41 § 4. Section 606 of the tax law is amended by adding a new subsection
42 (bbb) to read as follows:
43 (bbb) Employer provided or sponsored child care credit. (1) Allowance
44 of credit. A taxpayer shall be allowed a credit, to be computed as
45 provided in section fifty of this chapter, against the tax imposed by
46 this article.
47 (2) Application of credit. If the amount of the credit allowed under
48 this subsection for any taxable year exceeds the taxpayer's tax for such
49 year, the excess will be treated as an overpayment of tax to be credited
50 or refunded in accordance with the provisions of section six hundred
51 eighty-six of this article, provided, however, that no interest will be
52 paid thereon.
53 § 5. Section 1511 of the tax law is amended by adding a new subdivi-
54 sion (ff) to read as follows:
S. 3471 5
1 (ff) Employer provided or sponsored child care credit. (1) Allowance
2 of credit. A taxpayer will be allowed a credit, to be computed as
3 provided in section fifty of this chapter, against the taxes imposed by
4 this article.
5 (2) Application of credit. The credit allowed under this subdivision
6 for any taxable year will not reduce the tax due for such year to less
7 than the minimum tax fixed by this article. However, if the amount of
8 credit allowed under this subdivision for any taxable year reduces the
9 tax to such amount, any amount of credit thus not deductible in such
10 taxable year will be treated as an overpayment of tax to be credited or
11 refunded in accordance with the provisions of section one thousand
12 eighty-six of this chapter. Provided, however, the provisions of
13 subsection (c) of section one thousand eighty-eight of this chapter
14 notwithstanding, no interest will be paid thereon.
15 § 6. This act shall take effect immediately and shall apply to taxable
16 years commencing on or after January 1, 2025.
