N.Y. Tax Law § 44: Employer-provided child care credit

§ 44. Employer-provided child care credit. (a) General. A taxpayer

subject to tax under article nine-A, twenty-two, or thirty-three of this

chapter shall be allowed a credit against such tax in an amount equal to

two hundred percent of the portion of the credit that is allowed to the

taxpayer under section 45F of the internal revenue code that is

attributable to (i) qualified child care expenditures paid or incurred

with respect to a qualified child care facility with a situs in the

state, and to (ii) qualified child care resource and referral

expenditures paid or incurred with respect to the taxpayer's employees

working in the state. The credit allowable under this subdivision for

any taxable year shall not exceed five hundred thousand dollars. If the

entity operating the qualified child care facility is a partnership or a

New York S corporation, then such cap shall be applied at the entity

level, so the aggregate credit allowed to all the partners or

shareholders of such entity in a taxable year does not exceed five

hundred thousand dollars.

(b) Credit recapture. If there is a cessation of operation or change

in ownership, as defined by section 45F of the internal revenue code

relating to a qualified child care facility with a situs in the state,

the taxpayer shall add back the applicable recapture percentage of the

credit allowed under this section in accordance with the recapture

provisions of section 45F of the internal revenue code, but the

recapture amount shall be limited to the credit allowed under this

section.

(c) Reporting requirements. A taxpayer that has claimed a credit under

this section shall notify the commissioner of any cessation of

operation, change in ownership, or agreement to assume recapture

liability as such terms are defined by section 45F of the internal

revenue code, in the form and manner prescribed by the commissioner.

(d) Definitions. The terms "qualified child care expenditures",

"qualified child care facility", "qualified child care resource and

referral expenditure", "cessation of operation", "change of ownership",

and "applicable recapture percentage" shall have the same meanings as in

section 45F of the internal revenue code.

(e) Cross-references. For application of the credit provided for in

this section, see the following provisions of this chapter:

(1) article 9-A: section 210-B, subdivision 53;

(2) article 22: section 606(i), subsections (i) and (jjj);

(3) article 33: section 1511, subdivision (dd).