BILL NUMBER: AB 1284	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Patterson

                        FEBRUARY 22, 2013

   An act to amend Section 17052.25 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 17052.25 of the Revenue and Taxation Code is
amended to read:
   17052.25.  (a) 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 credit shall not exceed two
thousand five hundred dollars ($2,500) per minor child.
   (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   under  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.