Bill S3509A-2013

Establishes a personal income tax credit of up to $25,000 for the expenses of legally adopting a child

Establishes a personal income tax credit of up to $2,500 for the expenses of legally adopting a child.

Details

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  • Jan 24, 2014: PRINT NUMBER 3509A
  • Jan 24, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Feb 5, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S3509A

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

PURPOSE:

To establish a personal income tax credit of up to $25,000 for the expenses of legally adopting a child.

SUMMARY OF PROVISIONS:

Section 606 of the tax law is amended by adding a new subsection (t-2) to read as follows: A resident taxpayer shall be allowed a credit, not to exceed $25,000, against the tax imposed by this article for qualified adoption expenses for each child adopted. Qualified adoption expenses shall mean the expenses required for the legal adoption of a child by the taxpayer or the taxpayer's spouse. 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.

JUSTIFICATION:

Federal law currently allows for an adoption tax credit to assist with expenses paid prior to the year the adoption becomes final. A taxpayer who paid qualifying expenses in the current year for an adoption which became final in the current year, may be eligible to claim the credit for the expenses on the current year return, in addition to credit for expenses paid in a prior year. This bill would create a similar adoption tax credit for New York State. Currently, 19 other states have passed legislation providing some type of adoption tax credit to residents. Adoption is a most rewarding, yet expensive process which should be attainable to more families wishing to adopt a child. This bill will provide a state tax credit up to $25,000 for New York residents and alleviate some of the adoption costs.

LEGISLATIVE HISTORY:

2012 S.7745 Passed Senate

FISCAL IMPLICATIONS:

To be determined

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3509--A 2013-2014 Regular Sessions IN SENATE February 5, 2013 ___________
Introduced by Sens. BALL, LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investi- gations 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 establishing a personal income 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 A CREDIT, NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR QUALIFIED ADOPTION EXPENSES FOR EACH CHILD ADOPTED. (2) QUALIFIED ADOPTION EXPENSES. FOR THE PURPOSES OF THIS SUBSECTION, 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) 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, 2014.

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