Creates deduction from franchise tax and personal income tax for costs of acquiring or improving child care facility operated for profit; creates deduction from corporation tax, franchise tax, personal income tax and tax on banks for costs of acquiring or improving child care facility operated primarily for children of taxpayer's employees.
STATE OF NEW YORK
________________________________________________________________________
5227
2019-2020 Regular Sessions
IN ASSEMBLY
February 7, 2019
___________
Introduced by M. of A. RAMOS -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to providing tax deductions for
expenditures made to purchase, construct, renovate or remodel child
care facilities
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 188-a to
2 read as follows:
3 § 188-a. Deduction for creation or improvement of child care facili-
4 ties. A taxpayer operating a child care facility within the state prima-
5 rily for the children of such taxpayer's employees, shall be allowed a
6 deduction from taxable income for any expenditure made to acquire,
7 construct, renovate or remodel such child care facility or the equipment
8 therein. The deduction created by this section shall be deducted over
9 twenty-four months commencing in the month in which such acquisition,
10 construction, renovation or remodeling is put into service. The
11 deduction provided by this section shall be in lieu of any other allow-
12 ance for the exhaustion of such property used in a trade or business
13 held for the production of income, including a reasonable allowance for
14 obsolescence pursuant to section one hundred sixty-seven or one hundred
15 eighty-eight of the internal revenue code.
16 § 2. Subdivision 9 of section 208 of the tax law is amended by adding
17 two new paragraphs (u) and (v) to read as follows:
18 (u) A taxpayer operating a child care facility for profit, shall be
19 allowed a deduction from entire net income for any expenditure made to
20 acquire, construct, renovate or remodel such child care facility or the
21 equipment therein. The deduction created by this paragraph shall be
22 deducted over sixty months commencing in the month in which such acqui-
23 sition, construction, renovation or remodeling is put into service.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07464-01-9
A. 5227 2
1 (v) A taxpayer operating a child care facility within the state prima-
2 rily for the children of such taxpayer's employees, shall be allowed a
3 deduction from the entire net income for any expenditure made to
4 acquire, construct, renovate or remodel such child care facility or the
5 equipment therein. The deduction created by this paragraph shall be
6 deducted over twenty-four months commencing in the month in which such
7 acquisition, construction, renovation or remodeling is put into service.
8 The deduction provided by this paragraph shall be in lieu of any other
9 allowance for the exhaustion of such property used in a trade or busi-
10 ness held for the production of income, including a reasonable allowance
11 for obsolescence pursuant to section one hundred sixty-seven or one
12 hundred eighty-eight of the internal revenue code.
13 § 3. Subsection (c) of section 612 of the tax law is amended by adding
14 two new paragraphs 17 and 18 to read as follows:
15 (17) Any expenditure made by a taxpayer operating a child care facili-
16 ty for profit, to acquire, construct, renovate or remodel such child
17 care facility or the equipment therein. The deduction created by this
18 paragraph shall be deducted over sixty months commencing in the month in
19 which such acquisition, construction, renovation or remodeling is put
20 into service.
21 (18) Any expenditure made by a taxpayer operating a child care facili-
22 ty within the state primarily for the children of such taxpayer's
23 employees, to acquire, construct, renovate or remodel such child care
24 facility or the equipment therein. The deduction created by this para-
25 graph shall be deducted over twenty-four months commencing in the month
26 in which such acquisition, construction, renovation or remodeling is put
27 into service. The deduction provided by this paragraph shall be in lieu
28 of any other allowance for the exhaustion of such property used in a
29 trade or business held for the production of income, including a reason-
30 able allowance for obsolescence pursuant to section one hundred sixty-
31 seven or one hundred eighty-eight of the internal revenue code.
32 § 4. This act shall take effect immediately.