AB 1284, as introduced, Patterson. Income taxes: credits: adoption costs.
The Personal Income Tax Law authorizes various credits against the tax imposed by that law, including a credit against the tax in an amount equal to 50% of the costs, as specified, paid or incurred by a taxpayer for the adoption of a minor child, as provided.
This bill would make a technical, nonsubstantive change to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17052.25 of the Revenue and Taxation
2Code is amended to read:
(a) For each taxable year beginning on or after
4January 1, 1994, there shall be allowed as a credit against the “net
5tax,” as defined in Section 17039, an amount equal to 50 percent
6of the costs paid or incurred by a taxpayer for the adoption of any
7minor child who is a citizen or legal resident of the United States
8and was in the custody of a public agency of either this state or a
P2 1political subdivision of this state. The credit shall not exceed two
2thousand five hundred dollars ($2,500) per minor child.
3(b) “Costs” eligible for the credit pursuant to subdivision (a)
4shall include the following:
5(1) Fees for required services of either the Department of
Social
6Services or a licensed adoption agency.
7(2) Travel and related expenses for the adoptive family that are
8directly related to the adoption process.
9(3) Medical fees and expenses that are not reimbursed by
10insurance and are directly related to the adoption process.
11(c) The credit authorized by this section shall be claimed for
12the taxable year in which the decree or order of adoption is entered
13begin delete pursuant toend deletebegin insert underend insert Section 8612 of the Family Code. However, the
14allowable credit claimed may include any costs of that adoption
15paid or incurred in any prior taxable year.
16(d) In the case where the credit allowed by this section exceeds
17the “net tax,” the excess may be carried over to reduce the “net
18tax” in the following year, and succeeding years if necessary, until
19the total credit of two thousand five hundred dollars ($2,500) per
20minor child is exhausted.
21(e) Any deduction otherwise allowed under this part for any
22amount paid or incurred by the taxpayer upon which the credit is
23based shall be reduced by the amount of the credit allowed under
24this section.
O
99