Establishes a personal income tax credit of up to $2,500 for the expenses of legally adopting a child.
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 $2,500 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 $2,500, 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 $2,500 for New York residents and alleviate some of the adoption costs.
LEGISLATIVE HISTORY: New legislation.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2011.
STATE OF NEW YORK ________________________________________________________________________ 5112 2011-2012 Regular Sessions IN SENATE May 3, 2011 ___________Introduced by Sen. BALL -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations 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 TWO THOUSAND FIVE HUNDRED 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, 2011.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11313-01-1