TITLE OF BILL:
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
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.
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
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:
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:
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
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
This bill will take effect immediately.
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