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A09002 Summary:

BILL NOA09002
 
SAME ASNo Same As
 
SPONSORTapia
 
COSPNSRSayegh, Seawright, Dickens, Slater
 
MLTSPNSR
 
Amd §606, Tax L
 
Establishes that a resident taxpayer shall be allowed a credit against the tax in an amount equaling thirty percent of the qualified adoption expenses paid during the taxable year in conjunction with the taxpayer's adoption of a handicapped child or a hard to place child or five thousand dollars whichever is less.
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A09002 Actions:

BILL NOA09002
 
02/01/2024referred to ways and means
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A09002 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9002
 
SPONSOR: Tapia
  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 handicapped child or a hard to place child by the taxpayer for which the taxpayer 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: Assembly: 01/14/19 Referred to Ways and Means, 05/04/18 Referred to Ways and Means Senate: 06/20/18 Committed to Rules, 05/22/18 Advanced to third reading, 05/16/18 2'd Report Cal, 05/15/18 1 Report Ca1.1236, 03/06/18 Reported and Committed to Finance, 01/11/18 Referred to Investigations and Government Operations 02/22/21 referred to ways and means 01/05/22 referred to ways and means   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately.
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A09002 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9002
 
                   IN ASSEMBLY
 
                                    February 1, 2024
                                       ___________
 
        Introduced  by M. of A. TAPIA -- read once and referred to the Committee
          on Ways and Means
 
        AN ACT to amend the tax law, in relation to allowing a  tax  credit  for
          the adoption of special needs children
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
     2  subsection (ppp) to read as follows:
     3    (ppp)  Adoption  of  special needs children tax credit. (1) A resident
     4  taxpayer shall be allowed a credit against the tax imposed by this arti-
     5  cle in an amount equaling  thirty  percent  of  the  qualified  adoption
     6  expenses paid during the taxable year in conjunction with the taxpayer's
     7  adoption  of  a handicapped child or a hard to place child or five thou-
     8  sand dollars, whichever is less. If the amount of the  credit  allowable
     9  under  this  subsection for any taxable year shall exceed the taxpayer's
    10  tax for such year, the excess shall be treated as an overpayment of  tax
    11  to  be credited or refunded in accordance with the provisions of section
    12  six hundred eighty-six of  this  article,  provided,  however,  that  no
    13  interest shall be paid thereon.
    14    (2)  The following terms shall have the following meanings: (A) "Hand-
    15  icapped child" and "hard to place child" shall have the same meaning  as
    16  in  section  four  hundred  fifty-one of the social services law and the
    17  regulations promulgated thereunder.
    18    (B) "Qualified adoption expenses" shall mean the reasonable and neces-
    19  sary adoption fees, court costs, attorneys'  fees,  and  other  expenses
    20  that  are  directly related to the legal adoption of a handicapped child
    21  or hard to place child by the taxpayer for which the  taxpayer  has  not
    22  received a subsidy, reimbursement or federal tax credit under the inter-
    23  nal  revenue  code, provided, however, that such costs shall not include
    24  any costs associated with litigation.
    25    § 2. This act shall take effect immediately and shall apply to taxable
    26  years beginning on and after January 1, 2024.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05302-02-4
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