Session of 2000
         
HOUSE BILL No. 2840
         
By Committee on Appropriations
         
2-2
         

  9             AN  ACT relating to children and minors; concerning children in need of
10             care and special needs children; regarding tax credits therefor; amend-
11             ing K.S.A. 79-32,202 and repealing the existing section.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             New Section  1. For all taxable years commencing after December
15       31, 1999, there shall be allowed a credit against the tax liability of a res-
16       ident individual imposed under the Kansas income tax act who, for at
17       least 12 consecutive months, is a foster parent pursuant to the provisions
18       of K.A.R. 28-4-311 et seq., and amendments thereto. Such credit shall be
19       in the amount of $1,000. If the amount of such credit exceeds the income
20       tax liability of the individual, such excess amount shall be refunded to the
21       individual.
22             Sec.  2. K.S.A. 79-32,202 is hereby amended to read as follows: 79-
23       32,202 (a) For all taxable years commencing after December 31, 1996
24       1999, there shall be allowed as a credit against the tax liability of a resident
25       individual imposed under the Kansas income tax act an amount equal to
26       25% of the amount of the credit allowed against such taxpayer's federal
27       income tax liability pursuant to section 23 determined without regard to
28       subsection (c) thereof of the federal internal revenue code for the taxable
29       year in which such credit was claimed against the taxpayer's federal in-
30       come tax liability.
31             (b) For all taxable years commencing after December 31, 1996 1999,
32       there shall be allowed as a credit against the tax liability of a resident
33       individual imposed under the Kansas income tax act an amount equal to
34       $1,500 $3,000 for the taxable year in which occurs the lawful adoption of
35       a child in the custody of the secretary of social and rehabilitation services
36       or a resident of Kansas who is a child with special needs, whether or not
37       such individual is reimbursed for all or part of qualified adoption expenses
38       or has received a public or private grant therefor. As used in this subsec-
39       tion, terms and phrases shall have the meanings ascribed thereto by the
40       provisions of section 23 of the federal internal revenue code and this
41       subsection. Such conditions and factors include:
42             (1) Physical Disability: The child has a medically diagnosed disa-
43       bility which requires professional treatment on an ongoing basis, assis-


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  1       tance in self-care or the purchase of special equipment. Disability is to be
  2       diagnosed by a physician, hospital evaluation or other qualified medical
  3       practitioner.
  4             (2) Developmental Disability: The child has developmental disabil-
  5       ities or significant developmental delays or both as determined through
  6       evaluation by a licensed psychologist, diagnostic center, school special
  7       education services, or otherwise qualified professional.
  8             (3) Behavioral or Emotional Disability: The child has been diagnosed
  9       to have a psychiatric condition which impairs the child's intellectual or
10       social functioning. Diagnosis and prognosis must be established by a phy-
11       sician, psychologist or therapist and corroborated by the child's social
12       worker.
13             (4) Age of Child: The child shall be 12 years of age or older if age
14       is the only special needs factor or condition.
15             (5) Guarded Prognosis: The child is at high risk of developing a
16       physical, developmental or emotional disability. When a child's eligibility
17       for adoption subsidy is based on the high risk of developing a physical,
18       developmental or emotional disability, payment shall not be made unless
19       and until the potential disability manifests itself as documented by an
20       appropriate health care professional, physician, psychiatrist, psycholo-
21       gist, clinical social worker or diagnostic center.
22             (6) Sibling Relationship: The child is a member of a sibling group
23       of two or more children, who are being placed together for adoption. For
24       a sibling group of two or more, one of the siblings should have one of the
25       factors or conditions listed above. Sibling groups of three or more chil-
26       dren, being placed together, do not need to meet any other criteria.
27             (7) The state has determined the child cannot be returned to the home
28       of the parents, and has made reasonable efforts to place the child without
29       adoption subsidy, unless the child is being adopted by a relative or foster
30       parent.
31             No credit shall be allowed under subsection (a) for any qualified adop-
32       tion expenses incurred in the adoption of a child described by this
33       subsection.
34             (c) The credit allowed by subsections (a) and (b) shall not exceed the
35       amount of the tax imposed by K.S.A. 79-32,110, and amendments thereto,
36       reduced by the sum of any other credits allowable pursuant to law. If the
37       amount of such tax credit for tax year 2000, and all such years thereafter,
38       or any carryover amount accruing from tax years 1998 or 1999, exceeds
39       the taxpayer's income tax liability for such taxable year, the amount
40       thereof which exceeds such tax liability may be carried over for deduction
41       from the taxpayer's income tax liability in the next succeeding taxable year
42       or years until the total amount of the tax credits has been deducted from
43       tax liability, except that no such tax credit shall be carried over for de-


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  1       duction after the fifth taxable year succeeding the taxable year in which
  2       the credit was claimed shall be refunded to the taxpayer
  3       Sec.  3. K.S.A. 79-32,202 is hereby repealed.
  4        Sec.  4. This act shall take effect and be in force from and after its
  5       publication in the statute book.