Bill S3382A-2013

Provides for a deduction from personal gross income for expenses incurred in the adoption of a child in the foster care system

Provides for a deduction from personal gross income for expenses incurred in the adoption of a child in the foster care system.

Details

Actions

  • Jun 19, 2014: returned to senate
  • Jun 19, 2014: passed assembly
  • Jun 19, 2014: ordered to third reading rules cal.434
  • Jun 19, 2014: substituted for a2378b
  • Jun 11, 2014: referred to ways and means
  • Jun 11, 2014: DELIVERED TO ASSEMBLY
  • Jun 11, 2014: PASSED SENATE
  • Jun 11, 2014: ORDERED TO THIRD READING CAL.1289
  • Jun 11, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Apr 29, 2014: REPORTED AND COMMITTED TO FINANCE
  • Jan 14, 2014: PRINT NUMBER 3382A
  • Jan 14, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 11, 2013: referred to ways and means
  • Jun 11, 2013: DELIVERED TO ASSEMBLY
  • Jun 11, 2013: PASSED SENATE
  • Jun 10, 2013: ADVANCED TO THIRD READING
  • Jun 5, 2013: 2ND REPORT CAL.
  • Jun 4, 2013: 1ST REPORT CAL.999
  • 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  • Apr 11, 2013: NOTICE OF COMMITTEE CONSIDERATION - WITHDRAWN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

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Apr 29, 2014
Ayes (9): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin, Hoylman, Diaz, Squadron

Memo

BILL NUMBER:S3382A

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 eligible 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 environments. 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 3382--A 2013-2014 Regular Sessions IN SENATE February 1, 2013 ___________
Introduced by Sens. HASSELL-THOMPSON, MONTGOMERY, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government 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 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 41 to read as follows: (41) 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.

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