§ 59-06 Examples.
RCNY § 59-06
Example 1 Taxpayer X has created a new child care program in which a maximum of 22 child care seats is authorized under the permit DOHMH has issued. The child care program operates for 180 days within 38 calendar weeks during the service year. During these 180 days that the program was in operation, a sum total of 2,844 infant child care seats were occupied and a sum total of 747 toddler child care seats were occupied. The credit is determined as follows. Calculation of the number of infant child care seats and toddler child care seats that are occupied: Infant child care seats that are occupied, i.e., the average daily number of infants in attendance on the premises of such child care program: 2,844/180 = 15.8 (this number must be listed on the certification form) Toddler child care seats that are occupied, i.e., the average daily number of toddlers in attendance on the premises of such child care program: 747/180= 4.15 (this number must be listed on the certification form) The sum of 15.8 and 4.15 is 19.95. This number is less than the lesser of 22 (the maximum number of child care seats in the program), or 25 (the maximum number of seats allowed for the credit). Hence, the taxpayer uses both 15.8, the number of infant child care seats that are occupied, and 4.15, the number of toddler child care seats that were occupied to determine the credit amount. Calculation of four percent of the child care rates: The child care rate is $406 for infants and $370 for toddlers. Four percent of the infant child care rate: ($406 x 4 percent = $16.24) Four percent of the child care rate: ($370 x 4 percent = $14.80) Calculation of the credit: The product of the number of infant child care seats that are occupied and four percent of the infant child care rate: (15.8 x $16.24 = $256.59) The product of the number of toddler child are seats that are occupied and four percent of the toddler child care rate: (4.15 x $14.80 = $61.42) The sum of these products is (256.59 + 61.42 = $318.01) The number of days the program was in operation is 180. The limitation on the number of days is 260 multiplied by 38 (the number of calendar weeks the program was in operation) and divided by 52 (260 x 38/52 = 190). Because 180 is less than 190, the credit is calculated using 180, the number of days the program was in operation. Hence, the credit amount is: $318.01 x 180 = $57,241.80 Example 2 The facts are the same as in Example 1 except that Taxpayer X's new child care program operates for 180 days within 34 calendar weeks during the service year. During these 180 days that the program was in operation, a sum total of 3,717 infant child care seats were occupied and a sum total of 747 toddler child care seats were occupied. The credit is determined as follows. Calculation of the number of infant child care seats and toddler child care seats that are occupied: Infant child care seats that are occupied, i.e., the average daily number of infants in attendance on the premises of such child care program: 3717/180 = 20.65 (this number must be listed on the certification form) Toddler child care seats that are occupied, i.e., the average daily number of toddlers in attendance on the premises of such child care program: 747/180= 4.15 (this number must be listed on the certification form) The sum of 20.65 and 4.15 is 24.8. This number is greater than the lesser of 22 (the maximum number of child care seats in the program), or 25 (the maximum number of seats allowed for the credit). Hence, the number of infant child care seats is reduced by 2.8 (24.8 – 22 = 2.8), the difference between the sum of 24.8 and 22. Accordingly, the number of infant child care seats that are occupied is reduced from 20.65 to 17.85 (20.65 – 2.8 = 17.85) in calculating the credit. The number of toddler child care seats that were occupied, during the service year, is 4.15, and this amount does not have to be reduced and will be used to calculate the credit. Calculation of four percent of the child care rates: The child care rate is $406 for infants and $370 for toddlers. Four percent of the infant child care rate: ($406 x 4 percent = $16.24) Four percent of the toddler child care rate: ($370 x 4 percent = $14.80) Calculation of the credit: The product of the number of infant child care seats that are occupied and four percent of the infant child care rate: (17.85 x $16.24 = $289.88) The product of the number of toddler child are seats that are occupied and four percent of the toddler child care rate: (4.15 x $14.80 = $61.42) The sum of these products is (289.88 + 61.42 = $351.30) The number of days the program was in operation is 180. The limitation on the number of days is 260 multiplied by 34 (the number of calendar weeks the program was in operation) and divided by 52 (260 x 34/52 = 170). Because 180 is greater than the limitation of 170, the credit is calculated using 170, the limitation on the number of days for which the credit is available. Hence, the credit amount is: $351.30 x 170 = $59,721. Example 3 On September 1, 2022, Taxpayer Y has expanded a child care program that was in existence before April 1, 2022. Before the expansion, a maximum of 20 child care seats was authorized under the old permit DOHMH had issued. Under this old permit, the child care program operated for a total of 125 days, during which a sum total of 2,000 infant child care seats and a sum total of 250 toddler child care seats were occupied. After the expansion, the child care program is authorized to have a maximum of 32 child care seats under the new permit DOHMH has issued. The child care program operates for 90 days within 19 calendar weeks following the expansion during the service year. During these 90 days the program was in operation following the expansion, a sum total of 2,430 infant child care seats and a sum total of 360 toddler child care seats were occupied. The credit is determined as follows. Calculation of the additional occupied infant child care seats and toddler child care seats: Number of infant child care seats that are occupied following expansion, i.e., the average daily number of infants in attendance on the premises of such child care program following expansion: (2,430/90 = 27) (this number must be listed on the certification form) Less: the number of infant child care seats that were occupied before the expansion, i.e., the average daily number of infants in attendance on the premises of such child care program before the expansion: (2000/125 = 16) (this number must be listed on the certification form) Number of additional occupied infant child care seats: (27 - 16 = 11) Number of toddler child care seats that are occupied following expansion i.e., the average daily number of infants in attendance on the premises of such child care program following expansion: (360/90 = 4) (this number must be listed on the certification form) Less: the number of toddler child care seats that were occupied, i.e., the average daily number of infants in attendance on the premises of such child care program before expansion: (250/125 = 2) (this number must be listed on the certification form) Number of additional occupied toddler child care seats: (4 - 2 = 2) The sum of the additional occupied infant child care seats of 11 and additional occupied toddler child care seats of 2 is 13. This number is greater than the lesser of 12 (32 - 20 = 12) (the increase in the maximum number of child care seats in the child care program) or 25 (the maximum number of seats allowed for the credit). Hence, the number of additional occupied infant child care seats is reduced by 1, the difference between 13 and 12. Accordingly, the number of additional occupied infant child care seats is reduced from 11 to 10 (11 - 1 = 10) in calculating the credit. The number of additional occupied toddler child care seats is 2, and this amount does not have to be reduced and will be used to calculate the credit. Calculation of four percent of the child care rates: The child care rate is $406 for infants and $370 for toddlers. Four percent of the infant child care rate: ($406 x 4 percent = $16.24) Four percent of the toddler child care rate: ($370 x 4 percent = $14.80) Calculation of the credit: The product of the number of additional occupied infant child care seats and four percent of the infant child care rate is: (10 x 16.24 = $162.40) The product of the number of additional occupied toddler child care seats and four percent of the child care rate factor is: (2 x 14.80 = $29.60) The sum of these products is: (162.40 + 29.60 = $192 The number of days the program was in operation is 90. The limitation on the number of days is 260 multiplied by 19 (the number of calendar weeks the program was in operation following expansion) and divided by 52 (260 x 19/52 = 95). Because 90 is less than 95, the credit is calculated using 90, the number of days the program was in operation following expansion during the service year. Hence, the credit amount is: $192 x 90 = $17,280. (Added City Record 7/21/2023, eff. 8/20/2023)
