BASILE: USE HOLLYWOOD TAX BREAKS TO HELP FAMILIES AFFORD CHILDCARE, REDUCE STATE INCOME TAX
NEW WINDSOR, NY – With New York being ranked 49th worst in the nation in childcare costs while the state is giving massive tax breaks to Hollywood producers, New York State Senate candidate Tom Basile has announced that he will sponsor bold new legislation in the Senate next year to increase the state childcare tax credit to up to $20,000 in expenses annually. The new credit would be in addition to the existing state and federal credits.
“As working parents of three young children, my wife Carrie and I know how hard it is to afford quality child care. The costs are massive and burden families across a wide spectrum of incomes who already deal with the highest tax burden in the nation. People are barely making it here. For many parents in our area, this approach will drastically reduce their state income taxes,” said Basile who is running to succeed Senator Bill Larkin in the 39th District on the Republican, Independence and Conservative Party lines in November.
Qualifying expenses will be the same as are currently allowed and would include costs such as the cost of a licensed daycare facility, preschool program and after-school care up to $10,000 for one child or a maximum of $20,000 for two or more children. The credit would be available for residents who currently pay state income taxes and have incomes up to $275,000.
Under Basile’s plan, a typical two-income family of four with pre-school aged children living in Cornwall making $150,000 annually could have their state income tax bill reduced by as much as $5,000. For families earning less, the credit could wipe out their state income tax bill altogether.
Basile also sees the plan as a way to help middle-income property owners compensate for loss of state and local tax deductibility (SALT) on their federal returns. “We’re footing the bill for Albany’s screwed up priorities," added Basile. “My plan will make it easier for families to raise their children in our area and help stem the tide of people leaving.”
Basile’s plan would cost an estimated $400 million annually. He proposes fully-funding the new tax credit with money currently used to provide more than $420 million in tax breaks for Hollywood producers and diverting resources from other failed corporate welfare programs.
The state film tax credit is a refundable credit. The recipient of the credit does not have to owe any NYS taxes in order to receive 100% of the money from the credit, so it acts just like an expenditure. The recipient of the credit will get a check from the State as a refund, just the same as if they were being paid by the State as an expenditure. The majority of the recipients of the “Hollywood” tax credit are not based in NYS so they have little or no tax liability. The State is essentially “paying” them to film in New York.
“Our families need the tax break, not Hollywood producers. We can afford to do this at a time when our families are barely hanging on and we need to act now.” Basile points out that his opponent James Skoufis, voted twice to support to extension of the Film and Television or “Hollywood” Tax Credit, despite his claims to oppose the program.