Bill > A00598

This bill expands the employer-provided child care tax credit in New York State by modifying the existing tax law to include additional types of child care expenditures that employers can claim. Specifically, the bill allows employers to claim tax credits for qualified in-home care expenditures and backup care expenditures for employees working in the state, in addition to existing credits for qualified child care facilities and child care resource and referral services. The credit will be calculated as fifty percent of qualified child care expenditures and twenty percent of qualified child care resource and referral expenditures, with a maximum annual credit of $500,000 per entity. The bill also provides detailed definitions for new terms like "backup care" and "in-home care expenditures," which include various ways employers can support child care for their employees, such as contracting with care providers, reimbursing employees, or arranging care through third-party vendors. Additionally, the bill establishes a recapture mechanism that gradually reduces the credit if a child care facility ceases operations or changes ownership, with the recapture percentage decreasing over time. The changes will take effect for taxable years beginning on or after January 1, 2026, aiming to provide more flexible and comprehensive child care support for working families.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A598