[r22] Bill to provide tax credits for adopting households passes Senate

Posted by: Zach Weismiller  | Thursday, February 27, 2014

Today, House Bill (HB) 1222 authored by State Representative Rebecca Kubacki (R-Syracuse) passed the Indiana Senate unanimously. HB 1222 would provide a state tax credit for individuals that adopt a child. 

“I am incredibly happy to see this bill pass in the Senate,” said Rep. Kubacki. “I have been through the adoption process and I understand what a gift it is to be able to adopt children.”

HB 1222 would provide an adjusted gross income tax credit for individuals that qualify for the federal adoption credit. If enacted, qualifying Hoosiers would be eligible for a state tax credit equal to 10 percent of the qualifying federal adoption credit amount claimed on their federal income tax return starting in 2015. 

The Federal Adoption Tax Credit was created to offset the costs associated with the adoption process like adoption fees, court costs, attorney fees and numerous other expenses. A state credit like the one proposed in HB 1222 would help to further offset those expenses 

HB 1222 would also establish the Interim Committee on Adoption, which would research adoption programs in other states and within the state, make recommendations for improving adoption programs in Indiana and report their findings to the governor and the Department of Child Services. The committee, consisting of 9 members appointed by the governor, would review the relationships between state agencies and private, faith-based and community organizations in other states across the nation to determine potential ways for Indiana to improve its adoption programs. 

“The bill was passed unanimously in the Family, Children and Human Affairs committee and in the House as well. I am happy to be part of a bill that will help create more Hoosier families by joining children with loving parents. One of the main reasons people don’t adopt is because the adoption process is long and expensive which is upsetting because there are so many children waiting to be adopted by loving parents,” said Rep. Kubacki. “I hope this bill alleviates some burdens for those who want to adopt.”