senate Bill S6458

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 10 / Feb / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 31 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 12 / Jun / 2012
    • REPORTED AND COMMITTED TO RULES
  • 12 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1172
  • 12 / Jun / 2012
    • PASSED SENATE
  • 12 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2012
    • REFERRED TO WAYS AND MEANS

Summary

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

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Bill Details

See Assembly Version of this Bill:
A9221
Versions:
S6458
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง612, Tax L

Sponsor Memo

BILL NUMBER:S6458

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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6458

                            I N  S E N A T E

                            February 10, 2012
                               ___________

Introduced  by  Sen. HASSELL-THOMPSON -- 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.
                                                           LBD14391-01-2

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