S.B. 125

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Senate 3rd Reading Amendments 2-2-2005 rd/rlr

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Senate Committee Amendments 1-26-2005 rd/rlr This document includes Senate Committee Amendments incorporated into the bill on Wed, Jan 26, 2005 at 10:10 AM by rday. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Wed, Feb 2, 2005 at 11:00 AM by rday. --> 1

AMENDMENTS TO INDIVIDUAL INCOME TAX
2 CREDIT FOR SPECIAL NEEDS ADOPTIONS
3 2005 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Parley G. Hellewell
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Individual Income Tax Act relating to a tax credit for special
10 needs adoptions.
11 Highlighted Provisions:
12 This bill:
13 . amends the definition of "child who has a special need";
13a S. . Requires that an adoption occur in this state for a taxpayer to be eligible
13b for a tax credit ; and
14 [ . provides that a taxpayer may not claim a tax credit if the taxpayer adopts a child of
15 the taxpayer's spouse;
16 . grants rulemaking authority to the State Tax Commission to define "child of the
17 taxpayer's spouse"; and ] .S
18 . makes technical changes.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill has retrospective operation for taxable years beginning on or after January 1,
23 2005.
24 Utah Code Sections Affected:
25 AMENDS:
26 59-10-133, as last amended by Chapter 63, Laws of Utah 2003
27

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Senate 3rd Reading Amendments 2-2-2005 rd/rlr

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Senate Committee Amendments 1-26-2005 rd/rlr 28

Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 59-10-133 is amended to read:
30 59-10-133. Tax credits for special needs adoptions.
31 (1) [For purposes of] As used in this section, a "child who has a special need" means a
32 child[: (a) for whom permanent custody has been awarded to the Utah Division of Child and
33 Family Services; (b) who cannot or should not be returned to the home of the child's biological
34 parents; and (c)] who meets at least one of the following conditions:
35 [(i)] (a) the child is five years of age or older;
36 [(ii)] (b) the child:
37 (i) is under the age of 18 [with]; and
38 (ii) has a physical, emotional, or mental disability; or
39 [(iii)] (c) the child is a member of a sibling group placed together for adoption.
40 (2) S. [ [ ] For [ ] Except as provided in Subsection (3), for ] .S taxable years beginning on
40a or after
41 January 1, [2001] 2005, a taxpayer who adopts S IN THIS STATE s a child who has a special need
41a may claim on the
42 taxpayer's individual income tax return for the taxable year a refundable credit of $1,000
43 against taxes otherwise due under this chapter for:
44 (a) adoptions for which a court issues an order granting the adoption on or after
45 January 1, [2001] 2005;
46 (b) the taxable year during which a court issues an order granting the adoption; and
47 (c) each child who has a special need whom the taxpayer adopts.
48 S. [ (3) (a) Notwithstanding Subsection (2), a taxpayer may not claim a tax credit under this
49 section if the taxpayer adopts a child of the taxpayer's spouse.
50 [ (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
51 commission may by rule define "child of the taxpayer's spouse." ]
52 [ [ ] (3) [ ] (4) ] .S The credit provided for in this section may not be carried forward or carried
53 back.
54 S. [ [ ] (4) [ ] (5) ] .S Nothing in this section shall affect the ability of any taxpayer who adopts a
55 child who has a special need to receive adoption assistance under Section 62A-4a-907 .

56 Section 2. Retrospective operation.
57 This bill has retrospective operation for taxable years beginning on or after January 1,
58 2005.

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Legislative Review Note
as of 12-16-04 12:11 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel