BILL NUMBER: S7382

SPONSOR: GOLDEN
 
TITLE OF BILL:

An act to amend the tax law, in relation to allowing a tax credit for
the adoption of special needs children

 
PURPOSE OR GENERAL IDEA OF BILL:

To create a tax credit for taxpayers who adopt a special needs child.

 
SUMMARY OF PROVISIONS:

Section one of this bill provides that a resident tax payer shall be
allowed a refundable tax credit in the amount of $5000 or thirty percent
of the qualified adoption expenses, whichever is lesser, paid during the
taxable year by a tax payer who adopts a "handicapped" or "hard to
place" child. The definition of the terms "handicapped child" and "hard
to place child" are the same as the definitions found in Social Services
Law section 451 and the regulations promulgated thereunder.
              

The term "qualified adoption expenses" is defined as the reasonable and
necessary adoption fees, court costs, attorneys' fees, and other
expenses that are directly related to the legal adoption of a hand-
icapped child or a hard to place child by the taxpayer for which the tax
payer has not received a subsidy, reimbursement or federal tax credit
provided however, that such costs shall not include any costs associated
with litigation.

Section two provides that this act shall take place immediately and
shall apply to taxable years beginning on and after January 1st, 2018.

 
JUSTIFICATION:

The decision to adopt a special needs child is the ultimate act of self-
lessness and kindness. These parents should be given ample support so
that they may get though the actual adoption processes as smoothly as
possible.

Currently, New York State offers a subsidy to families who choose to
adopt a special needs child, but that subsidy does not cover adoption
expenses. Additionally, there is an adoption tax credit available for
adoptive parents on their Federal income tax return. While the Federal
adoption tax credit was not significantly altered by the Tax Cuts and
Jobs Act, Congress may change or eliminate the credit in the future.
This bill ensures that adoptive parents will be allowed to claim a State
tax credit for adopting a special needs child.  Adoptive parents who
choose to adopt a special needs child will face additional expenses as
their adopted child grows up. To the extent that we can assist these
adoptive parents with their adoption costs, we should. As a matter of
public policy, adoption is to be encouraged. This bill will ensure that
initial adoption costs will not stand in the way of finding loving homes
for New York State.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2018.