Bill
Bill > HF1026
IA HF1026
IA HF1026A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 965.)
summary
Introduced
04/17/2025
04/17/2025
In Committee
05/12/2025
05/12/2025
Crossed Over
05/12/2025
05/12/2025
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to the adoption tax credit available against the individual income tax. Currently, the tax credit equals up to $5,000 of qualified adoption expenses per adoption. The bill increases the tax credit to equal up to $20,000 of qualified adoption expenses per adoption. Any credit in excess of the tax liability is refundable. “Qualified adoption expenses” means unreimbursed expenses paid or incurred in connection with the adoption of a child, including medical and hospital expenses of the biological mother which are incident to the child’s birth, welfare agency fees, legal fees, and all other fees and costs which relate to the adoption of a child. “Child” means an individual under 18 years of age. Current law in Code section 422.12A(4) determines the tax year when qualified adoption expenses are allowed. The bill takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2024, for adoptions finalized on or after that date.
AI Summary
This bill increases the adoption tax credit available to Iowa taxpayers from $5,000 to $20,000 per adoption, which means individuals who adopt a child can now claim a larger tax credit for qualified adoption expenses. Qualified adoption expenses include costs such as medical and hospital expenses for the biological mother, welfare agency fees, legal fees, and other adoption-related expenses for children under 18 years old. Any tax credit amount that exceeds the taxpayer's total tax liability will be refundable, providing additional financial support to adoptive parents. The bill takes effect immediately upon enactment and applies retroactively to tax years beginning on or after January 1, 2024, specifically for adoptions that are finalized on or after that date. This change aims to provide more substantial financial assistance to families pursuing adoption by significantly expanding the existing tax credit.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Ways and Means (House)
Last Action
Explanation of vote. H.J. 1223. (on 05/20/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF1026 |
| Fiscal Note - Adoption Tax Credit, Amount | https://www.legis.iowa.gov/docs/publications/FN/1526244.pdf |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF1026.html |
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