Senate Bill 2435

AN ACT TO AMEND SECTION 27-7-22.32, MISSISSIPPI CODE OF 1972, TO INCREASE TO $5,000.00 THE MAXIMUM AMOUNT OF QUALIFIED ADOPTION EXPENSES INCURRED BY A TAXPAYER THAT MAY BE ALLOWED AS A CREDIT AGAINST INCOME TAXES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-7-22.32, Mississippi Code of 1972, is amended as follows:

27-7-22.32. There shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred, not to exceed Two Thousand Five Hundred Dollars ($2,500.00), for each dependent child legally adopted by a taxpayer under the laws of this state during calendar year 2006, or not to exceed Five Thousand Dollars ($5,000.00), for each dependent child legally adopted by a taxpayer under the laws of this state during calendar year 2007 or during any calendar year thereafter. The tax credit under this section may be claimed for the taxable year in which the adoption becomes final under the laws of this state. Any tax credit claimed under this section but not used in any taxable year may be carried forward for the three (3) succeeding tax years. A tax credit is not allowed under this section for any child for which an exemption is claimed during the same taxable year under Section 27-7-21(e). For the purposes of this section, the term "qualified adoption expenses" means and has the same definition as that term has in 26 USCS 23.

SECTION 2. This act shall take effect and be in force from and after January 1, 2007.