Bill Text: NY S01638 | 2011-2012 | General Assembly | Introduced
Bill Title: Establishes a tax credit for allowable expenses associated with the adoption of a child by a resident taxpayer; defines relevant terms.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2012-01-25 - PRINT NUMBER 1638A [S01638 Detail]
Download: New_York-2011-S01638-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 1638 2011-2012 Regular Sessions I N S E N A T E January 10, 2011 ___________ Introduced by Sen. SAMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to the establishment of a tax credit for the adoption of a child 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 (t-2) to read as follows: 3 (T-2) ADOPTION CREDIT. (1) GENERAL. A RESIDENT TAXPAYER SHALL BE 4 ALLOWED THE OPTION OF CLAIMING A CREDIT, TO BE COMPUTED AS PROVIDED IN 5 PARAGRAPH THREE OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS 6 ARTICLE FOR ALLOWABLE ADOPTION EXPENSES FOR EACH CHILD ADOPTED. 7 (2) ALLOWABLE AND QUALIFIED ADOPTION EXPENSES. FOR THE PURPOSES OF 8 THIS CREDIT, (A) THE TERM "ALLOWABLE ADOPTION EXPENSES" SHALL MEAN THE 9 AMOUNT OF QUALIFIED NONRECURRING ADOPTION EXPENSES PAID BY THE TAXPAYER 10 DURING THE TAXABLE YEAR FOR EACH CHILD ADOPTED, LIMITED TO TEN THOUSAND 11 DOLLARS, AND (B) THE TERM "QUALIFIED ADOPTION EXPENSES" SHALL MEAN THE 12 EXPENSES REQUIRED FOR THE LEGAL ADOPTION OF A CHILD BY THE TAXPAYER OR 13 THE TAXPAYER'S SPOUSE. 14 (3) AMOUNT OF CREDIT. IF ALLOWABLE ADOPTION EXPENSES ARE LESS THAN 15 FIVE THOUSAND DOLLARS, THE AMOUNT OF THE CREDIT PROVIDED UNDER THIS 16 SUBSECTION SHALL BE EQUAL TO THE APPLICABLE PERCENTAGE OF THE LESSER OF 17 ALLOWABLE ADOPTION EXPENSES OR TWO HUNDRED DOLLARS. IF ALLOWABLE 18 ADOPTION EXPENSES ARE FIVE THOUSAND DOLLARS OR MORE, THE AMOUNT OF THE 19 CREDIT PROVIDED UNDER THIS SUBSECTION SHALL BE EQUAL TO THE APPLICABLE 20 PERCENTAGE OF THE ALLOWABLE ADOPTION EXPENSES MULTIPLIED BY FOUR 21 PERCENT. SUCH APPLICABLE PERCENTAGE SHALL BE TWENTY-FIVE PERCENT FOR 22 TAXABLE YEARS BEGINNING IN TWO THOUSAND TWELVE, FIFTY PERCENT FOR TAXA- 23 BLE YEARS BEGINNING IN TWO THOUSAND THIRTEEN, SEVENTY-FIVE PERCENT FOR EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05900-01-1 S. 1638 2 1 TAXABLE YEARS BEGINNING IN TWO THOUSAND FOURTEEN AND ONE HUNDRED PERCENT 2 FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN. 3 (4) REFUNDABILITY. THE CREDIT UNDER THIS SUBSECTION SHALL BE ALLOWED 4 AGAINST THE TAXES IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR REDUCED 5 BY THE CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX 6 AS SO REDUCED, THE TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO 7 A CERTIFICATE OF THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT, WITHOUT 8 INTEREST, THE AMOUNT OF SUCH EXCESS. 9 S 2. This act shall take effect immediately and shall apply to taxable 10 years beginning on or after January 1, 2012.