§ 59-04 — Determination of Credit

§ 59-04 Determination of Credit.

a. Determination by Department. No later than January 31 immediately following the due date, the Department will: 1. approve a taxpayer's complete and timely application and determine the amount of the credit in accordance with this section; or 2. deny the application. b. Calculation of Credit. 1. Formula for the creation of child care. The amount of credit for a taxpayer that creates child care will be calculated pursuant to the following formula: the product of the amount determined under subparagraph (i) and the amount determined under subparagraph (ii). (i) The amount determined under this subparagraph will be the sum of: (A) the product of four percent of the child care infant rate and the number of infant child care seats that are occupied, as determined under subparagraph (iii); and (B) the product of four percent of the child care toddler rate and the number of toddler child care seats that are occupied, as determined under subparagraph (iii). (ii) The amount determined under this clause will be the lesser of: (A) the number of days the child care program is in operation during the service year; or (B) the product of 260 and a fraction, in which the numerator is the number of calendar weeks such program is in operation and the denominator is 52. (iii) In determining the number of infant or toddler child care seats that are occupied, the following rules apply: (A) Except as provided in clause (B) of this subparagraph, the number of infant child care seats that are occupied and the number of toddler child care seats that are occupied are the numbers provided for each respective category in the certification form included in the taxpayer's application. (B) If the sum of the number of infant child care seats that are occupied and the number of toddler child care seats that are occupied exceeds the seat cap for a created program, the number of infant child care seats that are occupied will be reduced until such sum does not exceed the seat cap. If such sum still exceeds the seat cap after reducing the number of infant child care seats that are occupied to zero, the number of toddler child care seats that are occupied will be reduced until such sum does not exceed the seat cap. 2. Formula for the expansion of child care. The amount of credit for a taxpayer that expands child care will be calculated pursuant to the following formula: the product of the amount determined under subparagraph (i) and the amount determined under subparagraph (ii). (i) The amount determined under this subparagraph will be the sum of: (A) the product of four percent of the child care infant rate and the number of additional occupied infant child care seats, as determined under subparagraph (iii); and (B) the product of four percent of the child care toddler rate and the number of additional occupied toddler child care seats, as determined under subparagraph (iii). (ii) The amount determined under this clause will be the lesser of: (A) the number of days the program is in operation following expansion during the service year; or (B) the product of 260 and a fraction, in which the numerator is the number of calendar weeks such program is in operation following expansion and the denominator is 52. (iii) In determining the number of additional occupied infant or toddler child care seats, the following rules apply: (A) Except as provided in clause (B) of this subparagraph, the number of additional occupied infant child care seats is the difference between the number of infant child care seats that were occupied after such expansion and the number of infant child care seats that were occupied before such expansion, as provided in the certification form included in the taxpayer's application, and the number of additional occupied toddler child care seats is the difference between the number of toddler child care seats that were occupied after such expansion and the number of toddler child care seats occupied before such expansion, as provided in the certification form included in the taxpayer's application. (B) If the sum of the number of additional occupied infant child care seats and the number of additional occupied toddler child care seats exceeds the seat cap for an expanded program, the number of additional occupied infant child care seats will be reduced until such sum does not exceed the seat cap. If such sum still exceeds the seat cap after reducing the number of additional occupied infant child care seats, the number of additional occupied toddler child care seats will be reduced until such sum does not exceed the seat cap. 3. Examples. The principles and calculations set forth in this subdivision are illustrated in the examples set forth in 19 RCNY § 59-06. c. Maximum Amount of Available Credit. The total amount of credits to all taxpayers may not exceed $25 million in any year. d. Reduction of Credit. 1. If the total amount of credits otherwise authorized for taxpayers that submitted completed applications on or before the due date exceed $25 million, each such credit will be reduced by multiplying such credit by a fraction, in which the numerator is $25 million and the denominator is the total amount of credits otherwise authorized for such taxpayers. 2. If the total amount of credits authorized for taxpayers that submitted completed applications on or before the due date do not exceed $25 million, the Commissioner may consider an application submitted during the discretionary period. (i) Any credit for a taxpayer with an application submitted during the discretionary period will be limited to no more than the amount remaining for the tax year, after subtracting all authorized credits granted to taxpayers whose completed applications were received on or before the due date. (ii) If the total amount of credits otherwise authorized for taxpayers with an application submitted during the discretionary period exceeds the amount remaining for the tax year, each such credit will be reduced by multiplying such credit by a fraction, in which the numerator is the amount remaining for the tax year and the denominator is the total amount of credits otherwise authorized for such taxpayers. (Added City Record 7/21/2023, eff. 8/20/2023)