Bill > HR2438

This bill creates a new refundable tax credit for foster families, providing an $850 credit for taxpayers who have a qualifying foster child placed with them for at least one month during the tax year. The credit is subject to income limitations, with the full credit phased out for taxpayers whose modified adjusted gross income exceeds certain thresholds ($250,000 for joint returns, $150,000 for individuals, and $125,000 for married individuals filing separately). To be eligible, the foster child must be under 17 years old, a U.S. citizen, national, or resident, and the taxpayer cannot claim the child tax credit for the same child. The bill also introduces new information reporting requirements for placement agencies and courts to document foster child placements and includes provisions to prevent fraudulent claims, such as a 10-year disallowance period for fraudulent claims and a 2-year period for reckless claims. Additionally, the bill requires the Department of Health and Human Services to conduct a study on the costs and challenges of emergency and short-term foster placements and submit a report to Congress within one year of the act's enactment. The tax credit provisions would become effective for calendar months beginning after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2438/all-info