NY S08632

Preserves New York's child and dependent care tax credit by referencing Internal Revenue Code Section 21 as it existed prior to Public Law 119-21 (the federal budget reconciliation act of 2025), ensuring state credit calculations remain unaffected by federal changes

Phases out the credit for high-income taxpayers beginning in tax year 2026: reduces credit by $20 for every $1,000 of income above $500,000 for single filers, or above $1,000,000 for joint filers

Removes obsolete provisions related to tax years 1996-1999, streamlining the statute to focus on current and future calculations

Updates gendered language from "husband and wife" to "spouses" throughout the subsection

Applies to taxable years beginning on or after January 1, 2026