Bill > HB1962

This bill creates a nonfamily adoption tax credit in Virginia for individuals or married couples who finalize an adoption of a child who is not their biological or stepchild between 2025 and 2029. Specifically, the bill provides a $4,000 nonrefundable tax credit for each nonfamily adoption, meaning taxpayers can only claim one credit per adopted child. If the credit amount exceeds the taxpayer's tax liability for the year of adoption, they can carry forward the remaining credit for up to three additional tax years. The bill limits the total amount of credits available to $5 million per year and establishes that credits will be granted on a first-come, first-served basis. The Tax Commissioner is required to develop guidelines for claiming the credit, and these guidelines will be exempt from the standard administrative process regulations. To qualify, the adoption must be a legal finalization where the adoptive parent is not the biological parent, stepparent, or current legal parent of the child.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB1962