senate Bill S3382

Vetoed Amended

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
  • Vetoed by Governor
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actions

  • 01 / Feb / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / Mar / 2013
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 11 / Apr / 2013
    • NOTICE OF COMMITTEE CONSIDERATION - WITHDRAWN
  • 16 / Apr / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jun / 2013
    • 1ST REPORT CAL.999
  • 05 / Jun / 2013
    • 2ND REPORT CAL.
  • 10 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 11 / Jun / 2013
    • PASSED SENATE
  • 11 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 14 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 14 / Jan / 2014
    • PRINT NUMBER 3382A
  • 29 / Apr / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 11 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 11 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1289
  • 11 / Jun / 2014
    • PASSED SENATE
  • 11 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2014
    • REFERRED TO WAYS AND MEANS
  • 19 / Jun / 2014
    • SUBSTITUTED FOR A2378B
  • 19 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.434
  • 19 / Jun / 2014
    • PASSED ASSEMBLY
  • 19 / Jun / 2014
    • RETURNED TO SENATE
  • 05 / Dec / 2014
    • DELIVERED TO GOVERNOR
  • 17 / Dec / 2014
    • VETOED MEMO.556

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

Versions:
S3382
S3382A
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd ยง612, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S6458

Sponsor Memo

BILL NUMBER:S3382

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 eligi-
ble 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 environ-
ments. 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
________________________________________________________________________

                                  3382

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 1, 2013
                               ___________

Introduced  by  Sens.  HASSELL-THOMPSON,  MONTGOMERY  --  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.
                                                           LBD02560-01-3

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