Bill Text: NJ S1439 | 2010-2011 | Regular Session | Introduced
Bill Title: Allows gross income tax credit for twenty-five percent of adoption expenses incurred by taxpayers filing individually earning less than $75,000 and those filing jointly earning less than $150,000.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-03-18 - Referred to Senate Budget and Appropriations Committee [S1439 Detail]
Download: New_Jersey-2010-S1439-Introduced.html
Sponsored by:
Senator BILL BARONI
District 14 (Mercer and Middlesex)
SYNOPSIS
Allows gross income tax credit for twenty-five percent of adoption expenses incurred by taxpayers filing individually earning less than $75,000 and those filing jointly earning less than $150,000.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a gross income tax credit for twenty-five percent of certain adoption expenses incurred by taxpayers, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A qualified taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 25 percent of the qualified adoption expenses incurred by the taxpayer during the taxable year.
b. If the credit allowed pursuant to subsection a. of this section reduces the tax liability otherwise due to zero, any amount of credit remaining shall be paid to the taxpayer as a refund of an overpayment of tax pursuant to N.J.S.54A:9-7, provided however, subsection (f) of that section, concerning the allowance of interest, shall not apply. The director shall determine the form and manner by which a taxpayer shall apply for and be eligible to receive a refund of an overpayment pursuant to this section.
c. As used in this section:
"Qualified adoption expenses" means "qualified adoption expenses" as defined in subsection d. of section 23 of the federal Internal Revenue Code (26 U.S.C. s.23).
"Qualified taxpayer" means a taxpayer filing pursuant to subsection a. of N.J.S.54A:2-1 with gross income for the taxable year less than $150,000 or a taxpayer filing pursuant to subsection b. of N.J.S.54A:2-1 with gross income for the taxable year less than $75,000.
2. This act shall take effect immediately and apply to taxable years commencing on or after the date of enactment.
STATEMENT
This bill allows a gross income tax credit for twenty-five percent of the adoption expenses incurred by taxpayers filing individually earning less than $75,000 and those filing jointly earning less than $150,000. The bill links the definition of adoption expenses to the federal Internal Revenue Code, which limits the term to include adoptions fees, court costs, attorney fees and other expenses directly related to and for the principal purpose of adoption. Adoption expenses do not include expenses incurred in an adoption that is illegal under State or federal law or an adoption wherein the adoptee is the child of the taxpayer's spouse. The purpose of this bill is to lessen the financial burden of the adoption process.
