A BILL TO BE ENTITLED
AN ACT to provide an income tax credit for adoption expenses.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read as follows:
"§ 105‑151.32.  Credit for adoption expenses.
(a)	Credit. – An individual who is allowed a federal adoption tax credit under section 23 of the Code for the taxable year is allowed a credit against the tax imposed by this Part.  The credit is equal to fifty percent (50%) of the amount of credit allowed under section 23 of the Code.
(b)	Limitations. – A nonresident or part‑year resident who claims the credit allowed by this section shall reduce the amount of the credit by multiplying it by the fraction calculated under G.S. 105‑134.5(b) or (c), as appropriate. The credit allowed under this section may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowed, except payments of tax made by or on behalf of the taxpayer."
SECTION 2.  This section is effective for taxable years beginning on or after January 1, 2007.