Provides for a deduction from personal gross income for expenses incurred in the adoption of a child in the foster care system.
Law Section: Tax Law
Law: Amd S612, Tax L
Co-sponsor(s): MONTGOMERYCommittee: FINANCE
Law Section: Tax Law
Law: Amd S612, Tax L
- Apr 16, 2013: REPORTED AND COMMITTED TO FINANCE
- Apr 11, 2013: NOTICE OF COMMITTEE CONSIDERATION - WITHDRAWN
- Mar 18, 2013: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
- Feb 1, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
S3382-2013 MeetingsInvestigations and Government Operations: Apr 16, 2013
VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Apr 16, 2013
BILL NUMBER:S3382 TITLE OF BILL: An act to amend the tax law, in relation to providing for a deduction from personal gross income for expenses incurred in the adoption of a child in the foster care system PURPOSE OR GENERAL IDEA OF THE BILL: In order to decrease the length of wait time for adoption of children in the foster care system and to create incentives to decrease the number of children in foster care waiting to be adopted, this legislation creates a tax deduction for all expenses incurred by the family adopting children from the foster care system. SUMMARY OF SPECIFIC PROVISIONS: Section 1: Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 39 which lists income tax deductibles for eligi- ble families adopting a child in the foster care system. Section 2: Provides for immediate effective date and shall apply to all taxable years beginning on or after the first of January in the year in which it shall have become law. JUSTIFICATION: Currently, New York State has over 23,000 children in custody in its foster care system. For a large number of these children, returning to their natural parents is impossible. In 2011, there were over 6,400 foster care children waiting to be adopted and the median years each has to wait to be adopted is close to 4.5 years. At an annual cost to New York State of over $33,000 per child in state custody, it is obvious that New York State government must do more to create incentives for families interested in adopting a child in the foster care system. This legislation gives adoptive families an income tax deduction for all the expenses incurred in such an adoption. In addition, it is a well understood dynamic that the longer a child is in the foster care system, the slimmer the chances for adoption. As children age in state custody it becomes a negative for them because families tend to adopt younger children. Therefore New York must do more to place these children in healthy, loving and nurturing home environ- ments. At a total annual cost of over $759 million dollars to maintain the 23,000 in state custody, it is clearly in the best interest of these children and to New York taxpayers to create incentives to reduce the number of children in government custody. PRIOR LEGISLATIVE HISTORY: New Legislation. FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT: Currently, New York spends over $33,000 annually for each child in the foster care system. In 2011, there were over 6,400 foster care children waiting to be adopted, but only about 7% or about 417 children were actually adopted. Allowing families to deduct the estimated $2,000 to $10,000 in expenses incurred to adopt a child reduces the amount paid in taxes to NYS by less than $600 per each adoption. Obviously, it makes enormous economic sense to lose $600 per adoption in tax collection by creating incentives to remove children from state custody at the current yearly cost of over $33,000 per child. Based on 2009 total adoptions from the foster care system, which placed 2,100 children with adoptive families, New York State tax collection would be reduced by about one million dollars. However, with over 23,000 children in State custody, during any given year, at the stated annual cost per child of over $33,000, the state will actually achieve savings in excess of the Projected decrease in tax revenue for each child adopted due to the incentives provided in this legislation. EFFECTIVE DATE: This bill will take effect immediately.
S T A T E O F N E W Y O R K ________________________________________________________________________ 3382 2013-2014 Regular Sessions I N SENATE February 1, 2013 ___________ Introduced by Sens. HASSELL-THOMPSON, MONTGOMERY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to providing for a deduction from personal gross income for expenses incurred in the adoption of a child in the foster care system THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 39 to read as follows:
(39) THE AMOUNT OF ADOPTION FEES INCLUDING ANY AND ALL MEDICAL AND LEGAL FEES, COURT COSTS AND ANY OTHER RELATED EXPENSES PAID OR INCURRED BY A TAXPAYER DURING THE TAXABLE YEAR IN CONNECTION WITH THE ADOPTION OF A CHILD IN THE FOSTER CARE SYSTEM. S 2. This act shall take effect immediately and shall apply to all taxable years beginning on or after the first of January in the year in which it shall have become a law. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02560-01-3