Bill > S05261

This bill updates the child and dependent care tax credit in New York State by modifying the maximum credit amounts based on the number of qualifying individuals and introducing different credit limits for specific tax years. Specifically, for taxable years beginning in 2025, the bill sets credit limits ranging from $7,500 for three qualifying individuals to $9,000 for five or more qualifying individuals. For taxable years beginning in 2026, the bill significantly increases these limits, with credits ranging from $6,000 for one qualifying individual to $18,000 for five or more qualifying individuals. The bill follows the federal Internal Revenue Code's section 21 guidelines for calculating the credit and ensures that taxpayers can claim a percentage of the federal child and dependent care tax credit, regardless of whether they actually claimed the federal credit. By adjusting these credit limits, the bill aims to provide additional financial support to families and individuals who incur child and dependent care expenses, reflecting the rising costs of such care.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5261