Bill > S01143

This bill modifies the existing employer-provided child care credit in New York state tax law to expand the types of child care expenses that businesses can claim for tax credits. Specifically, the bill broadens the credit to include 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 now allow businesses to receive 50% of qualified child care expenditures and 20% of qualified child care resource and referral expenditures, with a maximum annual credit of $500,000 per entity. The bill introduces detailed definitions for new terms like "backup care" (care provided when regular care is unavailable), "in-home care expenditures" (child care provided in an employee's home), and establishes specific rules for how these credits can be claimed. The legislation also includes provisions for recapturing credits if a child care facility ceases operations or changes ownership, with a sliding scale of recapture percentages based on the number of years the facility has been in service. The changes aim to provide more flexible and comprehensive child care support for working families by giving employers additional incentives to support their employees' child care needs. The bill will take effect for taxable years beginning on or after January 1, 2026.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S1143