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.
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.
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