ADOPTION EXPENSES
House Bill 4812
Sponsor: Rep. Michael Switalski
Committee: Tax Policy
Complete to 10-14-99
A SUMMARY OF HOUSE BILL 4812 AS INTRODUCED 6-17-99
The bill would amend the Income Tax Act to permit a taxpayer to claim a credit for adoption expenses equal to the amount of expenses or $1,200, whichever was less. If the credit exceeded tax liability, it would not be refunded but could be carried forward for five years to offset tax liability.
The credit would apply for the 1999 tax year and tax years thereafter, and would be available to a person who had claimed the adoption expenses credit under Section 23 of the federal Internal Revenue Code for the same tax year. The term "qualified adoption expenses" would refer to the expenses used to claim the federal credit. (Note: The federal law applies to reasonable and necessary adoption fees, court costs, attorney fees, and other expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child.)
MCL 206.267
Analyst: C. Couch