BILL NUMBER: AB 47 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Members Ma and Niello
DECEMBER 1, 2008
An act to amend Section 17052.25 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 47, as introduced, Ma. Income taxes: credit: adoption costs.
The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law, including a credit in an amount equal to
50% of specified adoption costs, not to exceed $2,500 per minor
child.
This bill would increase that credit to 75% of the costs of the
adoption, and increase the credit limit to a maximum of $5,000 with
respect to the adoption of any minor child, as described, who is over
12 years of age or who was living in a group home or residential
facility at the time of his or her adoption.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17052.25 of the Revenue and Taxation Code is
amended to read:
17052.25. (a) For (1)
Except as provided in paragraph (2), for each taxable year
beginning on or after January 1, 1994 , there
shall be allowed as a credit against the "net tax," as defined in
Section 17039, an amount equal to 50 percent of the costs paid or
incurred by a taxpayer for the adoption of any minor child who is a
citizen or legal resident of the United States and was in the custody
of a public agency of either this state or a political subdivision
of this state. The Except as provided in
paragraph (2), the credit shall not exceed two thousand five
hundred dollars ($2,500) per minor child.
(2) In the case of any minor child who is a person described in
Section 300, 601, or 602 of the Welfare and Institutions Code
immediately prior to his or her adoption, the credit shall be an
amount equal to 75 percent of the costs paid or incurred by a
taxpayer for the adoption plus any additional amounts applicable to a
minor child under subparagraphs (A) and (B), and shall not exceed a
maximum of five thousand dollars ($5,000) per minor child:
(A) An additional credit not to exceed two thousand five hundred
dollars ($2,500) per child shall be given if the minor child is over
12 years of age at the time of his or her adoption.
(B) An additional credit not to exceed two thousand five hundred
dollars ($2,500) shall be given if the minor child was living in a
group home or residential treatment facility at the time of his or
her adoption.
(b) "Costs" eligible for the credit pursuant to subdivision (a)
shall include the following:
(1) Fees for required services of either the Department of Social
Services or a licensed adoption agency.
(2) Travel and related expenses for the adoptive family that are
directly related to the adoption process.
(3) Medical fees and expenses that are not reimbursed by insurance
and are directly related to the adoption process.
(c) The credit authorized by this section shall be claimed for the
taxable year in which the decree or order of adoption is entered
pursuant to Section 8612 of the Family Code. However, the allowable
credit claimed may include any costs of that adoption paid or
incurred in any prior taxable year.
(d) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and succeeding years if necessary, until the
total credit of two thousand five hundred dollars ($2,500)
per minor child is exhausted.
(e) Any deduction otherwise allowed under this part for any amount
paid or incurred by the taxpayer upon which the credit is based
shall be reduced by the amount of the credit allowed under this
section.
(f) The amendments to this section by the act adding this
subdivision shall apply only to taxable years beginning on or after
January 1, 2009.
SEC. 2. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.