Provides a $2,500 credit against tax for every acceptance by a foster care parents of a foster care placement

Section 2 provides the effective date.

Existing law

Section 606 of the Tax Law, provides state credits against the personal income tax. Currently, there are no state credits against tax specifically for foster care parenting. At the federal level, the Child Tax Credit is a tax credit offered by the federal government for taxpayers raising dependent children under the age of 17. Qualifying children include foster children who are placed with the worker by an authorized private or governmental placement agency.

Justification

Every year, over 2,000 children from families in crisis are taken into custody or leave the custody of the Empire State's human services agencies, joining 15,000 to 17,000 children already in New York's foster care system. Of the 18,000 to 19,000 children, some are in care for a few months, others may be in for years, waiting to return home, be adopted into new families or to age out of the system.

Unfortunately, with only 8,000 to 11,000 foster care placements available from year to year, Social Service officials say they face a constant shortage of homes where at risk infants, children and teens can be placed, requiring New York State to pay for much more expensive residential care in institutions, group homes, and agency operated boarding homes for thousands of children.

For families interested in foster care, New York State imposes strict and extensive requirements they must meet before they can serve children in crisis. Families must also undergo extensive training, obtain a license and agree to participate in a regular monitoring program.

Foster families are not paid for undergoing the extensive training or an hourly wage for providing 24-hour care for the children they take into their home. They do receive financial compensation for room and boarding costs to cover food, clothing, shelter, transportation and other needs.

A $2,500 per family tax credit would help demonstrate New York State's appreciation to families who open their homes to these at-risk children, while helping to reduce the costs of providing much more expensive residential care for children who currently cannot be placed in foster care because of the continuing shortage.

Foster families are needed to help children from a wide variety of backgrounds, including: - Children who have lost their homes and families - Children who have been physically, sexually or mentally abused - Children who have been in residential treatment - Children with developmental delays - Children were severe physical, psychological or emotional disabilities - Children whose families have failed to properly care for them - Children whose families are wracked by alcohol or substance abuse

Some children are returned home after only a few months; others after a year or more. Sometimes, children who can't go home become eligible for adoption; others remain in foster care until age 21 when they age out of the system.

Currently, the federal government provides a tax credit to encourage adoptions, but foster care is currently ineligible for any tax credits.

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 or after January 1, 2016.