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VA HB1500

VA HB1500
Adoption; nonrefundable tax credit for amount of qualified expenses.


summary

Introduced
01/03/2023
In Committee
01/03/2023
Crossed Over
Passed
Dead
04/12/2023

Introduced Session

2023 Regular Session

Bill Summary

Adoption Tax Credit. Establishes a nonrefundable income tax credit for taxable years 2023 through 2027 for the amount of qualified adoption expenses, as defined by the bill, paid or incurred by an individual or married couple who finalize a legal adoption. The aggregate amount of qualified adoption expenses that may be claimed shall not exceed $10,000. In the case of an adoption of a child with special needs, as defined by the bill, the taxpayer will be treated as though he incurred $10,000 in qualified adoption expenses. Adoption Tax Credit. Establishes a nonrefundable income tax credit for taxable years 2023 through 2027 for the amount of qualified adoption expenses, as defined by the bill, paid or incurred by an individual or married couple who finalize a legal adoption. The aggregate amount of qualified adoption expenses that may be claimed shall not exceed $10,000. In the case of an adoption of a child with special needs, as defined by the bill, the taxpayer will be treated as though he incurred $10,000 in qualified adoption expenses.

AI Summary

This bill establishes a nonrefundable income tax credit for taxable years 2023 through 2027 for the amount of qualified adoption expenses, up to $10,000, paid or incurred by an individual or married couple who finalize a legal adoption. Qualified adoption expenses include reasonable and necessary fees, costs, and other expenses directly related to the legal adoption of an eligible child, but exclude expenses reimbursed under an employer program or otherwise. In the case of the adoption of a child with special needs, the taxpayer will be treated as though they incurred $10,000 in qualified adoption expenses, even if the actual expenses were less than that. The credit can be claimed by only one individual or married couple per adopted child and can be carried forward for up to five years if it exceeds the taxpayer's liability for that year.

Committee Categories

Budget and Finance

Sponsors (7)

Last Action

Left in Finance (on 02/07/2023)

Bill Topics

Macroeconomics
  • ‐ Taxation, Tax Policy, and Tax Reform
Social Welfare
  • ‐ Family Issues

bill text


bill summary

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bill summary

Document Type Source Location Created
State Bill Page https://lis.virginia.gov/cgi-bin/legp604.exe?231+sum+HB1500 01/03/2023
Fiscal Note/Analysis - House: Prefiled and ordered printed; offe https://lis.virginia.gov/cgi-bin/legp604.exe?231+oth+HB1500F161+PDF 01/24/2023
BillText https://lis.virginia.gov/cgi-bin/legp604.exe?231+ful+HB1500+hil 01/03/2023
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