General Adoption Credit.
The basic credit for Kansas residents adopting a child (or children) is 25% of the adoption credit allowed on your federal income tax return. An additional 25% credit (total of 50%) is available to Kansas residents if the adopted child was a Kansas resident prior to adoption. Another 25% credit (total of 75%) is available to Kansas residents if the adopted child was both a Kansas resident prior to adoption and a “child with special needs.
A child with special needs as defined by 26 U.S.C. 23(d)(3) (A) means a State has determined that the child cannot or should not be returned to the home of his parents, (B) such State has determined that there exists with respect to the child a specific factor or condition (i.e., ethnic background, age, or membership in a minority or sibling group, or the presence of factors such as medical conditions or physical, mental, or emotional handicaps) because of which it is reasonable to conclude that such child cannot be placed with adoptive parents without providing adoption assistance, and (C) such child is a citizen or resident of the United States [as defined in section 217(h)(3)].