Bill > A06774

This bill modifies the New York State child and dependent care tax credit by increasing the applicable percentage for taxpayers with adjusted gross incomes up to $50,000 starting in the 2025 tax year. Currently, the credit is calculated as a percentage of the federal child and dependent care credit, with the percentage varying based on the taxpayer's income. For taxpayers with New York adjusted gross incomes under $40,000, the bill will change the applicable percentage to 110% for tax years beginning on or after January 1, 2025, which means eligible taxpayers will receive a slightly higher tax credit to help offset the costs of child or dependent care. The bill preserves existing complex calculation methods for determining the credit amount, which involve a fraction based on the taxpayer's income and a multiplier, but introduces this new higher percentage for lower-income taxpayers. The change aims to provide additional financial support to families with lower incomes who are paying for child or dependent care services necessary for employment.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A6774