Bill > HB1517

This bill creates a new tax credit for individuals and married couples who finalize a legal domestic adoption in taxable years 2024 through 2028. The credit is worth up to $3,500 and can be claimed for qualified adoption expenses, which includes reasonable fees, court costs, and attorney fees directly related to the adoption. The credit is nonrefundable for individuals or couples with a Virginia adjusted gross income between $27,500 and $55,000 (or $55,000 and $110,000 for joint filers), but it is refundable for those with a Virginia adjusted gross income below $27,500 (or $55,000 for joint filers). Taxpayers cannot claim this credit if they have received state or federal assistance during the year the adoption was finalized or if they have already claimed the federal adoption tax credit for the same expenses.