Permits tax credit against gross income tax for certain adoption expenses.

This bill provides New Jersey taxpayers adopting foster children with a credit against their state gross income tax for eligible adoption expenses. The credit covers medical, therapeutic, and counseling costs for "special needs" children and lasts until the child turns 18 (or 21 with special education needs), or for life if the child has a severe disability certified by state disability directors. It directly affects adoptive parents of foster children who qualify as "special needs" under state definitions. The credit applies annually to taxable years beginning after January 1, 2008, and requires the Division of Taxation to create implementing rules. The bill is pending in the Assembly Children, Families and Food Security Committee.