S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1583
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 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  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (ooo) to read as follows:
   (OOO) ADOPTION OF SPECIAL NEEDS CHILDREN TAX CREDIT.  (1)  A  RESIDENT
 TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE  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  THOU-
 SAND  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)  "HAND-
 ICAPPED  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 NECES-
 SARY  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 INTER-
 NAL 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, 2024.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05302-01-3