Provides employers with a tax credit in an amount not to exceed 20% of expenses incurred in providing day care services to the children and wards of its employees and in training persons employed by the taxpayer or a third party provider rendering such services; provides that to receive such credit the facility or program rendering day care services must be licensed.
Summary
S00170 would create a new employer day care tax credit in New York’s tax law. The bill allows eligible taxpayers to claim a credit equal to 20% of expenses incurred in providing day care services for employees’ children or wards, including costs tied to training staff or third-party providers who render those services. Employers could qualify by contracting with an outside provider, reimbursing employees for child care expenses, or offering on-site or near-site day care.
The credit is capped so it cannot exceed the taxpayer’s total tax liability for the year, and it applies across multiple parts of the tax law, including the corporate franchise tax and personal income tax provisions. The bill also sets conditions for eligibility: the day care facility or program must be licensed and regulated by the appropriate state or New York City agency, and it cannot admit children during regular school hours if they are subject to compulsory school attendance laws. The measure would take effect immediately but apply to taxable years beginning on or after January 1, 2027.
Impact
The bill would amend several sections of the Tax Law to add a new employer day care credit, creating a direct state tax incentive for businesses that subsidize or provide child care for employees. It would affect corporate taxpayers and certain individual taxpayers by reducing tax liability for qualifying child care-related expenditures, while also tying eligibility to licensing and regulatory compliance standards for child care providers. The measure would not mandate employer-provided child care, but it would encourage it through a refundable-style reduction in tax owed up to the amount of tax liability, subject to the bill’s cap.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive and policy-driven, aimed at helping working parents and encouraging employer participation in child care access. The structure of the bill suggests a pro-family, workforce-support approach rather than a controversial regulatory overhaul. No formal opposition, amendments, or recorded roll-call divisions are shown in the available context.
Contention
The main points of potential contention are likely to be the fiscal cost of the credit, whether the incentive is broad enough to meaningfully expand child care access, and whether the licensing and school-attendance restrictions could limit participation. Another possible issue is the bill’s anti-discrimination requirement and its allowance for preference to employees whose ability to work depends on child care availability, which could raise questions about administration and fairness. However, no specific objections or opposing viewpoints are included in the provided committee or vote history.