S1638A-2011 Actions

• Jan 25, 2012: PRINT NUMBER 1638A
• Jan 25, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 10, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S1638A-2011 Memo

BILL NUMBER:S1638

TITLE OF BILL:
An act
to amend the tax law, in relation to the establishment of a tax credit
for the adoption of a child

PURPOSE:
To amend section 606 of the tax law to allow persons who adopt
children to receive a tax credit.

SUMMARY OF PROVISIONS:
Section 606 of the tax law is amended to provide taxpayers who adopt
children the option of claiming a tax credit for allowable adoption
expenses. Section 2 defines "allowable adoption expenses" and
"qualified adoption expenses". Section 3 clarifies the amount of
allowable adoption expenses.

JUSTIFICATION:
In order to adopt a child there are high costs that potential adoptive
parents would have to incur and therefore, many are discouraged.
These high costs include, but are not limited to, adoption fees,
court costs, attorney fees and travel expenses. This tax deduction
would help to offset these "nonrecurring adoption expenses" and
possibly encourage those people who want to adopt but are discouraged
from doing so by the high costs associated with the adoption process.

EXISTING LAW:
There is currently no tax credit for adoption expenses.

LEGISLATIVE HISTORY:
S.5136 of 2007
04/25/07 Referred to Investigations & Government Operations
S.136 of 2009
01107/09 REFERRED TO INVESTIGATIONS & GOVERNMENT OPERATIONS
01/06/10 REFERRED TO INVESTIGATIONS & GOVERNMENT OPERATIONS

FISCAL IMPLICATIONS:
UNKNOWN at present time.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2012.

S1638A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 1638--A
 2011-2012 Regular Sessions
 I N  SENATE
 January 10, 2011
 
 Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern
 ment Operations -- recommitted to the Committee on Investigations  and
 Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 -
 committee discharged, bill amended, ordered reprinted as  amended  and
 recommitted to said committee
 AN  ACT  to amend the tax law, in relation to the establishment of a tax
 credit for the adoption of a child
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1.   

Section  606  of the tax law is amended by adding a new
 subsection (t-2) to read as follows:

 (T-2) ADOPTION CREDIT. (1)  GENERAL.  A  RESIDENT  TAXPAYER  SHALL  BE
 ALLOWED  THE  OPTION OF CLAIMING A CREDIT, TO BE COMPUTED AS PROVIDED IN
 PARAGRAPH THREE OF THIS SUBSECTION, AGAINST  THE  TAX  IMPOSED  BY  THIS
 ARTICLE FOR ALLOWABLE ADOPTION EXPENSES FOR EACH CHILD ADOPTED.
 (2)  ALLOWABLE  AND  QUALIFIED  ADOPTION EXPENSES. FOR THE PURPOSES OF
 THIS CREDIT, (A) THE TERM "ALLOWABLE ADOPTION EXPENSES" SHALL  MEAN  THE
 AMOUNT  OF QUALIFIED NONRECURRING ADOPTION EXPENSES PAID BY THE TAXPAYER
 DURING THE TAXABLE YEAR FOR EACH CHILD ADOPTED, LIMITED TO TEN  THOUSAND
 DOLLARS,  AND  (B) THE TERM "QUALIFIED ADOPTION EXPENSES" SHALL MEAN THE
 EXPENSES REQUIRED FOR THE LEGAL ADOPTION OF A CHILD BY THE  TAXPAYER  OR
 THE TAXPAYER'S SPOUSE.
 (3)  AMOUNT  OF  CREDIT.  IF ALLOWABLE ADOPTION EXPENSES ARE LESS THAN
 FIVE THOUSAND DOLLARS, THE AMOUNT OF  THE  CREDIT  PROVIDED  UNDER  THIS
 SUBSECTION  SHALL BE EQUAL TO THE APPLICABLE PERCENTAGE OF THE LESSER OF
 ALLOWABLE  ADOPTION  EXPENSES  OR  TWO  HUNDRED  DOLLARS.  IF  ALLOWABLE
 ADOPTION  EXPENSES  ARE FIVE THOUSAND DOLLARS OR MORE, THE AMOUNT OF THE
 CREDIT PROVIDED UNDER THIS SUBSECTION SHALL BE EQUAL TO  THE  APPLICABLE
 PERCENTAGE  OF  THE  ALLOWABLE  ADOPTION  EXPENSES  MULTIPLIED  BY  FOUR
 PERCENT. SUCH APPLICABLE PERCENTAGE SHALL  BE  TWENTY-FIVE  PERCENT  FOR
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05900-02-2
 
       S. 1638--A                          2
 TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND THIRTEEN, FIFTY PERCENT FOR
 TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN,  SEVENTY-FIVE  PERCENT
 FOR  TAXABLE  YEARS  BEGINNING  IN  TWO THOUSAND FIFTEEN AND ONE HUNDRED
 PERCENT FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN.
 (4)  REFUNDABILITY.  THE CREDIT UNDER THIS SUBSECTION SHALL BE ALLOWED
 AGAINST THE TAXES IMPOSED BY THIS ARTICLE FOR THE TAXABLE  YEAR  REDUCED
 BY  THE CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX
 AS SO REDUCED, THE TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO
 A CERTIFICATE OF THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT,  WITHOUT
 INTEREST, THE AMOUNT OF SUCH EXCESS.
 

S 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2013.

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