Bill Text: CA AB47 | 2009-2010 | Regular Session | Amended
Bill Title: Income taxes: credit: adoption costs.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB47 Detail]
Download: California-2009-AB47-Amended.html
BILL NUMBER: AB 47 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 20, 2009
AMENDED IN ASSEMBLY MARCH 5, 2009
INTRODUCED BY Assembly Members Ma and Niello
(Principal coauthor: Assembly Member Miller)
(Principal coauthor: Senator Alquist)
(Coauthors: Assembly Members Beall, Bill Berryhill, Tom Berryhill,
Chesbro, DeVore, Fletcher, Fuentes, Galgiani,
Garrick, Gilmore, Hagman, Nestande, Price, Salas, and Silva)
(Coauthors: Senators Cedillo and Florez)
DECEMBER 1, 2008
An act to amend, repeal, and add Section 17052.25 of the Revenue
and Taxation Code, relating to taxation, to take effect immediately,
tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 47, as amended, Ma. Income taxes: credit: adoption costs.
The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law, including a credit in an amount equal to
50% of specified adoption costs, not to exceed $2,500 per minor child
who is a citizen or legal resident of the United States and who is
in the custody of a public agency in this state.
This bill would, for taxable years beginning on or after January
1, 2009 2010 , and before January 1,
2015, increase the credit limitation to a maximum of $5,000 with
respect to the adoption of a minor child, as described, who is over
12 years of age or who was living in a group home or residential
treatment facility , as defined, for a period of at least
6 months within 18 months prior to the time the adoption is
completed.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) This act is intended to complement the federal Fostering
Connections to Success and Increasing Adoptions Act of 2008 (Public
Law 110-351), which provides enhanced incentive funding to states
that successfully increase adoptions of older youth from foster care.
(b) The adoption of foster youth 12 years of age or older is an
important issue that needs to be addressed by the Legislature.
(c) Less than 11 percent of the adoptions completed annually in
California are of foster children who are 12 years of age or older,
despite the fact that older youth represent approximately 40 percent
of the foster care caseload.
(d) This act is intended to create additional incentives for
prospective adoptive parents to adopt older foster youth by removing
monetary barriers that might otherwise hinder the adoption of these
older foster youth.
(e) There is evidence that when other adoption incentive measures
have been enacted, the numbers of adoptions in this state have
increased.
SEC. 2. Section 17052.25 of the Revenue and Taxation Code is
amended to read:
17052.25. (a) (1) For each taxable year beginning on or after
January 1, 1994, and before January 1, 2015, there shall be allowed
as a credit against the "net tax," as defined in Section 17039, an
amount equal to 50 percent of the costs paid or incurred by a
taxpayer for the adoption of any minor child who is a citizen or
legal resident of the United States and was in the custody of a
public agency of either this state or a political subdivision of this
state. Except as provided in paragraph (2), the credit shall not
exceed two thousand five hundred dollars ($2,500) per minor child.
(2) For each taxable year beginning on or after January 1,
2009 2010 , and before January 1, 2015,
if the minor child is over 12 years of age at the time of his or her
adoption, or if the minor child was living in a group home or
residential treatment facility for a period of at least six months
within 18 months prior to the date the adoption is completed, or if
the minor child is both over 12 years of age at the time of his or
her adoption and was living in a group home or residential treatment
facility for a period of at least six months within 18 months prior
to the date the adoption is completed, the credit shall not exceed
five thousand dollars ($5,000) per minor child.
(b) "Costs" eligible for the credit pursuant to subdivision (a)
shall include the following:
(1) Fees for required services of either the Department of Social
Services or a licensed adoption agency.
(2) Travel and related expenses for the adoptive family that are
directly related to the adoption process.
(3) Medical fees and expenses that are not reimbursed by insurance
and are directly related to the adoption process.
(c) For purposes of this section, the following terms have the
following meanings:
(1) "Group home" means a nondetention privately operated
residential home of any capacity.
(2) "Residential treatment facility" means a family home, group
care facility, or similar facility determined by the State Public
Health Officer, for 24-hour nonmedical care of persons in need of
personal services, supervision, or assistance essential for
sustaining the activities of daily living for the protection of the
individual.
(c)
(d) The credit authorized by this section shall be
claimed for the taxable year in which the decree or order of adoption
is entered pursuant to Section 8612 of the Family Code. However, the
allowable credit claimed may include any costs of that adoption paid
or incurred in any prior taxable year.
(d)
(e) In the case where the credit allowed by this
section exceeds the "net tax," the excess may be carried over to
reduce the "net tax" in the following year, and succeeding years if
necessary, until the total credit is exhausted.
(e)
(f) Any deduction otherwise allowed under this part for
any amount paid or incurred by the taxpayer upon which the credit is
based shall be reduced by the amount of the credit allowed under
this section.
(f)
(g) This section shall remain in effect only until
December 1, 2015, and as of that date is repealed.
SEC. 3. Section 17052.25 is added to the Revenue and Taxation
Code, to read:
17052.25. (a) For each taxable year beginning on or after January
1, 2015, there shall be allowed as a credit against the "net tax,"
as defined in Section 17039, an amount equal to 50 percent of the
costs paid or incurred by a taxpayer for the adoption of any minor
child who is a citizen or legal resident of the United States and was
in the custody of a public agency of either this state or a
political subdivision of this state. The credit shall not exceed two
thousand five hundred dollars ($2,500) per minor child.
(b) "Costs" eligible for the credit pursuant to subdivision (a)
shall include the following:
(1) Fees for required services of either the State Department of
Social Services or a licensed adoption agency.
(2) Travel and related expenses for the adoptive family that are
directly related to the adoption process.
(3) Medical fees and expenses that are not reimbursed by insurance
and are directly related to the adoption process.
(c) The credit authorized by this section shall be claimed for the
taxable year in which the decree or order of adoption is entered
pursuant to Section 8612 of the Family Code. However, the allowable
credit claimed may include any costs of that adoption paid or
incurred in any prior taxable year.
(d) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and succeeding years if necessary, until the
total credit of two thousand five hundred dollars ($2,500) per minor
child is exhausted.
(e) Any deduction otherwise allowed under this part for any amount
paid or incurred by the taxpayer upon which the credit is based
shall be reduced by the amount of the credit allowed under this
section.
(f) This section shall become operative on January 1, 2015, and
apply to taxable years beginning on or after that date.
SEC. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
