Bill > SB1084

This bill establishes a new child adoption tax credit for Pennsylvania resident individuals, allowing taxpayers to claim a $1,000 tax credit for each child they adopt who is under 18 years old and not the child of the taxpayer's spouse. The tax credit can only be claimed once per adopted child, either by the individual taxpayer or their spouse, and can be claimed by individuals filing jointly in the year the adoption is finalized. Taxpayers must claim the credit on their tax return, and the Department of Revenue will be responsible for creating the necessary forms and regulations to administer the credit. Additionally, the department is required to submit an annual report to the General Assembly by October 15th starting in 2027, detailing the number of tax credits approved, the total amount of credits approved, and the amount of credits actually claimed. The bill also updates the definition of "tax credit" in the Tax Reform Code to include this new child adoption tax credit, and it will apply to tax years beginning after December 31, 2025, with the act taking effect immediately upon passage.

Budget and Finance

https://www.palegis.us/legislation/bills/2025/sb1084