Establishes a child care program capital improvement tax credit program for child care programs to provide financial assistance to New York's child care providers to facilitate the enhancement, expansion, and improvement of access to quality child care.
This bill creates the “child care program capital improvement tax credit program” within the Social Services Law and adds corresponding tax law provisions so eligible child care programs can receive a refundable-style state tax credit tied to capital improvement spending. The stated purpose is to help child care providers improve, expand, and enhance facilities and safety, thereby increasing access to quality child care for New York families.
Eligible child care programs must be licensed or registered by the Office of Children and Family Services, incur at least $2,000 in qualifying capital costs, and remain in substantial compliance with applicable emergency orders, public health rules, and tax obligations. Qualifying costs include expansion materials, construction and retrofits, air purification equipment, and other costs approved by the office. The credit equals 50% of qualified capital costs, with a minimum credit of $1,000 and a maximum of $50,000 per business entity, and the overall program is capped at $250 million in total credits.
The bill would amend both the Social Services Law and the Tax Law to create a new administered tax credit program for child care providers. It authorizes the Office of Children and Family Services to determine eligibility, issue certificates of tax credit, monitor compliance, require recordkeeping and performance reports, and revoke certificates if requirements are not met. The Tax Law amendments allow eligible taxpayers under Articles 9-A and 22 to claim the credit, provide for pass-through treatment for partnerships, LLCs, and S corporations, and require information sharing between OCFS and the Department of Taxation and Finance, with confidentiality protections limiting public disclosure.
Based on the bill text and the absence of committee transcripts or recorded votes, the available context suggests the measure is framed positively as a child care access and provider-support initiative. The sponsor’s findings emphasize public policy goals of increasing access to quality child care and helping providers finance facility improvements. There is no recorded opposition in the provided materials, but the bill’s structure indicates a policy preference for targeted tax incentives rather than direct grants or appropriations.
The main potential points of contention are fiscal cost, administrative oversight, and eligibility restrictions. The bill imposes a $250 million statewide cap and up to $50,000 per recipient, which may draw scrutiny from budget-focused lawmakers. It also conditions eligibility on compliance with emergency/public health orders and tax obligations, which could be viewed as necessary safeguards by supporters but as burdensome by providers with outstanding liabilities. Another possible issue is the confidentiality and information-sharing framework, since the bill shields certain tax and application information from FOIL while allowing interagency exchange for enforcement and administration.