Provides for a tax deduction for the adoption of a child with special needs

This bill creates a $10,000 tax deduction for adoptive parents who legally adopt a child with special needs. It directly affects taxpayers who become the legal parents of a child under 21 with a significant physical, mental, or emotional condition that, per the Office of Children and Family Services, creates a major obstacle to adoption. The deduction can be applied each year the taxpayer maintains legal parenthood of the child. The policy change applies to taxable years starting January 1, 2025.