New York Senate Bill S00975

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Establishes a supplemental household and dependent care credit payment for taxpayers who are eligible for certain household and dependent care services necessary for gainful employment.

Summary

S00975 would amend New York’s tax law to create a supplemental household and dependent care credit payment beginning with tax years on or after January 1, 2026. Taxpayers who are already eligible for the existing household and dependent care services credit would receive an additional payment equal to 15 percent of their actual credit amount. The bill applies to the same taxpayers who qualify under the current credit for care services needed to allow a taxpayer to work or seek employment. The measure also specifies that if the underlying household and dependent care credit exceeds a taxpayer’s tax liability, the excess would continue to be treated as an overpayment and refunded or credited under existing tax procedures, but no interest would be paid on that overpayment. The bill takes effect immediately, though its practical application begins with taxable years starting January 1, 2026.

Impact

The bill would expand the value of New York’s existing household and dependent care services credit by adding a state-funded supplemental payment equal to 15 percent of the base credit. This would increase tax benefits for eligible working families and other taxpayers who incur qualifying dependent care expenses, and it would require the tax commissioner to administer the new supplemental payment starting with 2026 tax years. The bill does not create a new eligibility category, but it increases the amount received by taxpayers already entitled to the credit under section 606 of the tax law.

Sentiment

No committee transcript or recorded vote information was provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text and caption, the measure appears designed as a targeted tax relief provision for households with dependent care costs, suggesting a generally pro-family and pro-work policy rationale. The absence of recorded opposition or amendments in the supplied context means sentiment cannot be assessed beyond the bill’s stated purpose.

Contention

The main policy issue likely to draw attention is the fiscal cost of providing an additional 15 percent payment on top of the existing household and dependent care credit, since that would reduce state revenue and increase refunds or payments to eligible taxpayers. Another possible point of discussion is whether the benefit is sufficiently targeted, because it applies only to taxpayers already eligible for the underlying credit and does not broaden eligibility. No specific objections, supporters, or negotiated changes are reflected in the provided committee or voting history.