A 2674: Increases the child and dependent care tax credit to reflect increases in the cost of child and dependent care.
The proposed bill aims to increase the child and dependent care tax credit in the state of New York. The credit will be calculated based on the applicable percentage of the credit allowable under the internal revenue code, without considering whether the taxpayer actually claimed the credit. The credit amount will be capped at certain dollar limits depending on the number of qualifying individuals, which will change for taxable years beginning in 2026. The new limits are: * 7,500 dollars for 3 qualifying individuals * 8,500 dollars for 4 qualifying individuals * 9,000 dollars for 5 or more qualifying individuals for taxable years beginning in 2025 * 6,000 dollars for 1 qualifying individual * 12,000 dollars for 2 qualifying individuals * 15,000 dollars for 3 qualifying individuals * 17,000 dollars for 4 qualifying individuals * 18,000 dollars for 5 or more qualifying individuals for tax…
| Jan. 07, 2026 | referred to ways and means |
| Jan. 21, 2025 | referred to ways and means |
STATE OF NEW YORK ________________________________________________________________________ 2674 2025-2026 Regular Sessions IN ASSEMBLY January 21, 2025 ___________ Introduced by M. of A. LUNSFORD, CLARK, GALLAGHER, McMAHON, ZINERMAN -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to increasing the child and dependent care tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 1-b of subsection (c) of section 606 of the tax 2 law, as added by section 2 of part T of chapter 59 of the laws of 2017, 3 is amended to read as follows: 4 (1-b) Notwithstanding anything in this subsection to the contrary, a 5 taxpayer shall be allowed a credit as provided in this subsection equal 6 to the applicable percentage of the credit allowable under section twen- 7 ty-one of the internal revenue code for the same taxable year (without 8 regard to whether the taxpayer in fact claimed the credit under such 9 section twenty-one for such taxable year) that would have been allowed 10 absent the application of section 21(c) of such code [for taxpayers with11more than two qualifying individuals], provided however, that the credit 12 shall be calculated as if the dollar limit on amount creditable shall 13 not exceed: 14 (i) seven thousand five hundred dollars if there are three qualifying 15 individuals, eight thousand five hundred dollars if there are four qual- 16 ifying individuals, and nine thousand dollars if there are five or more 17 qualifying individuals for taxable years beginning in two thousand twen- 18 ty-five; and 19 (ii) six thousand dollars if there is one qualifying individual, 20 twelve thousand dollars if there are two qualifying individuals, fifteen 21 thousand dollars if there are three qualifying individuals, seventeen 22 thousand dollars if there are four qualifying individuals, and eighteen 23 thousand dollars if there are five or more qualifying individuals for 24 taxable years beginning in two thousand twenty-six. 25 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04247-01-5