S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9002
 
                           I N  A S S E M B L Y
 
                             February 1, 2024
                                ___________
 
 Introduced  by M. of A. TAPIA -- 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 (ppp) to read as follows:
   (PPP)  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.
                                                            LBD05302-02-4