S.B. 125

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";
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
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

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) [For] Except as provided in Subsection (3), for taxable years beginning on or after
41 January 1, [2001] 2005, a taxpayer who adopts a child who has a special need 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 (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) The credit provided for in this section may not be carried forward or carried
53 back.
54 [(4)] (5) 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.

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