NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7145A
SPONSOR: Simon TITLE OF BILL:
An act to amend the tax law, in relation to establishing a tax deduction
for the adoption of a child with special needs
PURPOSE:
To grant an individual taxpayer a deduction for fees incurred through
the adoption of a child with special needs.
SUMMARY OF PROVISIONS:
This bill would establish an individual taxpayer deduction of ten thou-
sand dollars for the adoption of a child with special needs, under the
age of eighteen who possesses a specific physical, mental, or emotional
condition or disability of such severity or kind that it constitutes an
obstacle to the child's adoption.
JUSTIFICATION:
Currently, New York State has over 23,000 children in custody in its
foster care system. For a large number of these children, returning to
their natural parents is impossible. In 2011, there were over 6,400
foster care children waiting to be adopted and the median years each has
to wait to be adopted is close to 4.5 years. At an annual cost to New
York State of over $33,000 per child in state custody, it is obvious
that New York State government must do more to create incentives for
families interested in adopting a child in the foster care system. Chil-
dren with special needs constitute a special problem for adoption.
New York State has recognized the need to provide incentives for the
adoption of children with special needs by providing a subsidy of up to
$2,000 for non-recurring adoption expenses. In addition, at the federal
level, there is a federal adoption tax credit for all adoptions which
allows those adopting a special needs child with the maximum allowable
deduction, regardless of qualified adoption expenses.
This legislation would give adoptive families a state income tax
deduction as well, for adopting a child with special needs. New York
must do more to place children with special needs in healthy, loving and
nurturing home environments.
At a total annual cost of over $759 million dollars to maintain the
23,000 in state custody, it is clearly in the best interest of these
children and to New York taxpayers to create incentives to reduce the
number of children in government custody. Public policy that effectively
encourages adoption, and especially adoption of children with special
needs is beneficial to taxpayers who already have many hurdles to face
in adopting a special needs child.
LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to adoptions in
taxable years beginning on and after January 1, 2016.
