What's happening
This bill creates a New York State tax credit for adopting special needs children, covering up to 30% of qualified adoption expenses or $5,000.
Why it matters
Provides direct financial relief to families adopting special needs children. by offsetting up to 30% of qualified adoption expenses (capped at $5,000), making adoption more feasible for families who might otherwise be deterred by costs.
Targets children classified as “handicapped” or “hard to place,”. addressing specific barriers to adoption for children who historically face longer waits in the foster care system due to their special needs.
Ensures the credit only covers out-of-pocket expenses not already subsidized or reimbursed,. preventing “double-dipping” with federal tax credits or existing subsidies, and focusing the benefit on additional, unreimbursed costs.
Allows the credit to be refundable,. meaning that if the credit exceeds the taxpayer’s liability, the remainder is returned as a refund, ensuring families with lower incomes can still fully benefit.
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Who cares
New York resident adoptive parents
Those adopting children classified as handicapped or hard to place could claim a refundable credit of 30% of qualified adoption expenses, capped at $5,000.
Adoption agencies and adoption attorneys
Their reasonable and necessary adoption fees could qualify for the credit, but litigation costs and expenses covered by subsidies, reimbursements or a federal tax credit would be excluded.
New York State Department of Taxation and Finance
The department would administer the credit for taxable years beginning on or after January 1, 2020, including crediting or refunding amounts exceeding taxpayers’ tax liability without interest.
Headline styles
Adoption Tax Credit for Disabilities
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1318
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. JOYNER -- 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 Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Adoption of special needs children tax credit. (1) A resident taxpayer shall be allowed a credit against the tax imposed by this article 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. If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
(2) The following terms shall have the following meanings: (A) "Handicapped child" and "hard to place child" shall have the same meaning as in section four hundred fifty-one of the social services law and the regulations promulgated thereunder.
(B) "Qualified adoption expenses" shall mean 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 hard to place child by the taxpayer for which the taxpayer has not received a subsidy, reimbursement or federal tax credit under the internal revenue code, provided, however, that such costs shall not include any costs associated with litigation.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2020.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00492-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.