S T A T E   O F   N E W   Y O R K
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                                 1638--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 10, 2011
                               ___________

Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  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 the establishment of a 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  THE  OPTION OF CLAIMING A CREDIT, TO BE COMPUTED AS PROVIDED IN
PARAGRAPH THREE OF THIS SUBSECTION, AGAINST  THE  TAX  IMPOSED  BY  THIS
ARTICLE FOR ALLOWABLE ADOPTION EXPENSES FOR EACH CHILD ADOPTED.
  (2)  ALLOWABLE  AND  QUALIFIED  ADOPTION EXPENSES. FOR THE PURPOSES OF
THIS CREDIT, (A) THE TERM "ALLOWABLE ADOPTION EXPENSES" SHALL  MEAN  THE
AMOUNT  OF QUALIFIED NONRECURRING ADOPTION EXPENSES PAID BY THE TAXPAYER
DURING THE TAXABLE YEAR FOR EACH CHILD ADOPTED, LIMITED TO TEN  THOUSAND
DOLLARS,  AND  (B) 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)  AMOUNT  OF  CREDIT.  IF ALLOWABLE ADOPTION EXPENSES ARE LESS THAN
FIVE THOUSAND DOLLARS, THE AMOUNT OF  THE  CREDIT  PROVIDED  UNDER  THIS
SUBSECTION  SHALL BE EQUAL TO THE APPLICABLE PERCENTAGE OF THE LESSER OF
ALLOWABLE  ADOPTION  EXPENSES  OR  TWO  HUNDRED  DOLLARS.  IF  ALLOWABLE
ADOPTION  EXPENSES  ARE FIVE THOUSAND DOLLARS OR MORE, THE AMOUNT OF THE
CREDIT PROVIDED UNDER THIS SUBSECTION SHALL BE EQUAL TO  THE  APPLICABLE
PERCENTAGE  OF  THE  ALLOWABLE  ADOPTION  EXPENSES  MULTIPLIED  BY  FOUR
PERCENT. SUCH APPLICABLE PERCENTAGE SHALL  BE  TWENTY-FIVE  PERCENT  FOR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05900-02-2
              

S. 1638--A                          2

TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND THIRTEEN, FIFTY PERCENT FOR
TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN,  SEVENTY-FIVE  PERCENT
FOR  TAXABLE  YEARS  BEGINNING  IN  TWO THOUSAND FIFTEEN AND ONE HUNDRED
PERCENT FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN.
  (4)  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, 2013.