A05602 Summary:
| BILL NO | A05602 |
| SAME AS | No Same As |
| SPONSOR | Manktelow (MS) |
| COSPNSR | Brabenec, DeStefano, Giglio, Lawrence, Salka, Finch |
| MLTSPNSR | Byrnes, McDonough, Mikulin, Walsh |
| Amd §606, Tax L | |
| Relates to the creation of a child care tax deduction that shall be equal to the amount of income not to exceed $10,000 earned by an at home parent by providing child care services for up to two qualifying children. | |
A05602 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
TITLE OF BILL: An act to amend the tax law, in relation to deductions against personal income tax PURPOSE OR GENERAL IDEA OF BILL: This bill would allow a parent of a pre-school child to have up to $10,000 of income that is earned for providing child care services for up to two pre-schoolers, exempted from New York State taxes. SUMMARY OF SPECIFIC PROVISIONS: Section 606 of the tax law is amended by adding a new subsection (v) to read as follows: (v) Child care tax deduction. A taxpayer shall be allowed a deduction against the tax imposed by this article. The amount of the deduction shall be equal to the amount of income not to exceed ten thousand dollars earned by an at home parent by providing child care services for up to two qualifying children. This new subsection also provides definitions for at home parent, parent and qualifying child. JUSTIFICATION: Parents of pre-school children often struggle with the decision of whether to stay home to care for their pre-school children or to work outside the home and have someone else care for their child/children. This decision is typically complicated by the need of the parent to earn income to help support the family. This bill would give parents more options by making the choice of staying home to care for their own child/children, while also caring for other people's children, more financially feasible. There is also a growing problem of finding quali- ty, affordable child care for pre-school children. Under this legislation, parents of pre-school children who decide to work outside the home would also benefit. They would likely have a greater option of people to provide child care for their children as more parents decide to stay home to care for their own child, as well as one or two other pre-school children. PRIOR LEGISLATIVE HISTORY: 2002: Held for Consideration in Ways and Means 2003: Referred to Ways and Means 2004: Held for Consideration in Ways and Means 2005: Referred to Ways and Means (A.4672) 2006: Referred to Ways and Means 2007-08: Held for Consideration in Ways and Means (A.3578) 2009-10: Held for Consideration in Ways and Means (A.5583) 2011-12: Held for consideration in Ways and Means (A.5098) 2013-14: Held for consideration in Ways and Means (A.6616) 2017-18: Held for consideration in Ways and Means (A.6535) FISCAL IMPLICATIONS: The state will lose some undetermined amount of income tax revenue that would be paid for income earned by child care givers who are exempt from income tax by this law. The state will also experience a more accurate accounting of income earned for childcare as an undetermined amount of income now is unreported by citizens. EFFECTIVE DATE: This act shall take effect on January 1st, succeeding the passage of this law.
A05602 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 5602 2019-2020 Regular Sessions IN ASSEMBLY February 13, 2019 ___________ Introduced by M. of A. MANKTELOW, BRABENEC, DeSTEFANO, GIGLIO -- Multi- Sponsored by -- M. of A. McDONOUGH, MIKULIN, WALSH -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to deductions against personal income tax The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (v) to read as follows: 3 (v) Child care tax deduction. (1) A taxpayer shall be allowed a 4 deduction against the tax imposed by this article. The amount of the 5 deduction shall be equal to the amount of income not to exceed ten thou- 6 sand dollars earned by an at home parent by providing child care 7 services for up to two qualifying children. 8 (2)(A) For the purposes of this subsection, "at home parent" means a 9 parent who provides full-time care at the parent's residence for one or 10 more of the parent's own qualifying pre-school children and who claims 11 the qualifying child as a dependent on the parent's individual income 12 tax return for the taxable year for which the parent claims the credit. 13 (B) For the purposes of this subsection, "parent" means an individual 14 who: 15 (i) is the biological mother or father of a qualifying child; or 16 (ii) is the stepfather or stepmother of a qualifying child; or 17 (iii) legally adopts a qualifying child; or has a qualifying child 18 placed in the individual's home by a child placing agency for the 19 purpose of legally adopting the child; or 20 (iv) is a legal guardian of a qualifying child. 21 (C) For the purposes of this subsection "qualifying child" means a 22 child who is not older than six years of age and is yet to enroll in a 23 certified elementary school program or has enrolled in a certified 24 elementary school program at some point during the taxable year. 25 § 2. This act shall take effect on the first of January next succeed- 26 ing the date on which it shall have become a law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08936-01-9