New York Assembly Bill A08028

New York 2025-2026 Regular Session

• Introduced: 4/22/25
• Refer: 4/22/25
• Report Pass: 5/27/25
• Refer: 5/27/25
• Report Pass: 6/4/25
• Refer: 6/4/25
• Report Pass: 6/6/25

Caption

Relates to increasing the amount of the childcare center tax abatement for certain properties in a city having a population of one million or more for abatements taken in a tax year commencing on or after July first, two thousand twenty-five; provides that no such childcare center tax abatement shall be authorized for any tax year commencing on or after July first, two thousand thirty-two; extends the deadline for application for such childcare center tax abatement to March fifteenth, two thousand twenty-seven.

Impact

The bill is expected to have a positive impact on the availability of childcare in New York City, where demand often exceeds supply. By raising the maximum potential tax abatement, the law seeks to incentivize developers to invest in creating and expanding childcare centers. This legislative move anticipates a beneficial ripple effect on family support systems, allowing more parents to enter the workforce knowing that childcare options are increasing. It aligns with New York's strategic goals of enhancing urban living conditions by supporting essential services like childcare.

Summary

Bill A08028 proposes amendments to the real property tax law in New York, aiming to increase the childcare center tax abatement for qualifying properties in cities with populations exceeding one million. The legislation modifies the maximum allowable abatement based on the size of the premises and the nature of the tax year. Under the new guidelines, properties that meet certain criteria can receive significant financial tax relief to facilitate the construction or enhancement of childcare facilities, thereby encouraging the development of more childcare options in densely populated urban areas.

Provision

An important provision in the bill specifies that no childcare center tax abatements will be authorized for tax years commencing on or after July 1, 2032. This sunset clause aims to ensure that the initiative is revisited periodically to assess its effectiveness and adapt to any shifts in housing market realities or childcare needs over time. Additionally, the bill extends the application deadline for tax abatements to March 15, 2027, providing more flexibility for facility operators to capitalize on these incentives.

Contention

One notable point of contention surrounding Bill A08028 is its sustainability and the potential long-term financial implications on the state's tax revenue. Critics might express concerns over the cap placed on total tax abatements for each year, which is set at twenty-five million dollars. There are worries that such tax incentives, while beneficial in the short term, may compound fiscal challenges in future budgets. Moreover, the restriction on abolishing the tax abatement after a certain date raises questions about the continuity of childcare support and whether the initial legislative aims can be maintained.