S.B. 71

1

TAX CREDITS FOR SPECIAL NEEDS
2 ADOPTIONS
3 2001 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Carlene M. Walker
6 This act modifies provisions of the Revenue and Taxation Code and the Utah Human
7 Services Code relating to Child and Family Services. The act provides a tax credit to any
8 taxpayer who adopts a child who has a special need. This act has retrospective operation for
9 taxable years beginning on or after January 1, 2001.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 62A-4a-607, as last amended by Chapters 39 and 208, Laws of Utah 2000
13 ENACTS:
14 59-10-133, Utah Code Annotated 1953
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 59-10-133 is enacted to read:
17 59-10-133. Tax credits for special needs adoptions.
18 (1) For purposes of this section, a "child who has a special need" means a child for whom
19 permanent custody has been awarded to the Utah Division of Child and Family Services, who
20 cannot or should not be returned to the home of the child's biological parents, and who meets at
21 least one of the following conditions:
22 (a) the child is five years of age or older;
23 (b) the child is under the age of 18 with a physical, emotional, or mental disability; or
24 (c) the child is a member of a sibling group placed together for adoption.
25 (2) For taxable years beginning on or after January 1, 2001, a taxpayer who adopts a child
26 who has a special need may claim on the taxpayer's individual income tax return for the taxable
27 year a nonrefundable credit of $3,000 against taxes otherwise due under this chapter for:

28 (a) adoptions for which a court issues an order granting the adoption on or after January
29 1, 2001;
30 (b) each consecutive taxable year for a three-year period beginning with the taxable year
31 during which a court issues an order granting the adoption; and
32 (c) each child who has a special need whom the taxpayer adopts.
33 (3) If the amount of tax credit claimed by a taxpayer under this section exceeds the
34 taxpayer's tax liability under this chapter for a taxable year, the amount of the credit exceeding the
35 liability may be carried forward for a period that does not exceed the next five consecutive taxable
36 years.
37 (4) Nothing in this section shall affect the right of any taxpayer who adopts a child who
38 has a special need to receive financial aid for adoption expenses under Section 62A-4a-108 .
39 Section 2. Section 62A-4a-607 is amended to read:
40 62A-4a-607. Promotion of adoption -- Agency notice to potential adoptive parents.
41 (1) (a) The division and all child placing agencies licensed under this part shall promote
42 adoption when that is a possible and appropriate alternative for a child. Specifically, in accordance
43 with Section 62A-4a-205.6 , the division shall actively promote the adoption of all children in its
44 custody who have a final plan for termination of parental rights pursuant to Section 78-3a-312 or
45 a primary permanency goal of adoption.
46 (b) Beginning May 1, 2000, the division may not place a child for adoption, either
47 temporarily or permanently, with any individual or individuals who do not qualify for adoptive
48 placement pursuant to the requirements of Sections 78-30-1 , 78-30-1.5 , and 78-30-9 .
49 (2) The division shall obtain or conduct research of prior adoptive families to determine
50 what families may do to be successful with their adoptive children and shall make this research
51 available to potential adoptive parents.
52 (3) (a) A child placing agency licensed under this part shall inform each potential adoptive
53 parent with whom it is working that:
54 (i) children in the custody of the state are available for adoption;
55 (ii) Medicaid coverage for medical, dental, and mental health services may be available
56 for these children;
57 (iii) tax benefits, including the tax credit provided for in Section 59-10-133 , and financial
58 assistance may be available to defray the costs of adopting these children;

59 (iv) training and ongoing support may be available to the adoptive parents of these
60 children; and
61 (v) information about individual children may be obtained by contacting the division's
62 offices or its Internet site as explained by the child placing agency.
63 (b) A child placing agency shall:
64 (i) provide the notice required by Subsection (3)(a) at the earliest possible opportunity; and
65 (ii) simultaneously distribute a copy of the pamphlet prepared by the division in
66 accordance with Subsection (3)(d).
67 (c) As a condition of licensure, the child placing agency shall certify to the Office of
68 Licensing at the time of license renewal that it has complied with the provisions of this section.
69 (d) Before July 1, 2000, the division shall:
70 (i) prepare a pamphlet that explains the information that is required by Subsection (3)(a);
71 and
72 (ii) regularly distribute copies of the pamphlet described in Subsection (3)(d)(i) to child
73 placing agencies.
74 (e) The division shall respond to any inquiry made as a result of the notice provided in
75 Subsection (3)(a).
76 Section 3. Retrospective operation.
77 This act has retrospective operation for taxable years beginning on or after January 1, 2001.




Legislative Review Note
as of 1-24-01 12:11 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel