THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GINGRICH, BAKER, BOBACK, BOYD, CLYMER, COHEN, D. COSTA, J. EVANS, EVERETT, FLECK, FRANKEL, GIBBONS, GODSHALL, GOODMAN, GROVE, HARHART, HARKINS, HESS, HICKERNELL, HUTCHINSON, KAUFFMAN, KILLION, KORTZ, KULA, MAJOR, MILLER, MILNE, MURPHY, M. O'BRIEN, O'NEILL, PAYNE, PICKETT, PYLE, RAPP, SCAVELLO, SCHRODER, STERN, TALLMAN, WAGNER AND WHITE, JANUARY 24, 2011

REFERRED TO COMMITTEE ON FINANCE, JANUARY 24, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," providing for a tax credit for adoption expenses.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, is amended by adding a section to

read:

Section 314.1.  Tax Credit for Adoption Expenses.--(a)  A

taxpayer shall be allowed a credit against the tax imposed by

this article for the legal adoption of an eligible child for

which the taxpayer qualifies for the credit for adoption

expenses under section 23 of the Internal Revenue Code of 1986

(Public Law 99-514, 26 U.S.C. § 23).

(b)  The amount of the credit allowed under subsection (a) is

equal to two thousand dollars ($2,000) in the taxable year the

adoption is final. Only one credit is allowed for each eligible

child. However, married taxpayers filing separately on the same

form may allocate the credit between spouses.

(c)  To claim the credit under this section, the taxpayer

shall:

(1)  include the name, age and Federal tax identification

number, if known, of the eligible child on the tax return; and

(2)  provide other information as required by the department,

including identification of an agent assisting with the

adoption.

(d)  If the taxpayer cannot use the entire amount of the

credit under this section for the taxable year in which the

expenses are first claimed, then the excess may be carried over

to succeeding taxable years. Each time that the credit is

carried over to a succeeding taxable year, it shall be reduced

by the amount that was used as a credit during the immediately

preceding taxable year. The credit may be carried over and

applied to succeeding taxable years for no more than five

taxable years following the first taxable year for which the

taxpayer was entitled to claim the credit.

Section 2.  The addition of section 314.1 of the act shall

apply to taxable years beginning after December 31, 2011.

Section 3.  This act shall take effect in 60 days.