[r22] New bill will provide tax credits for adopting households

Posted by: Zach Weismiller  | Thursday, January 16, 2014

State Representative Rebecca Kubacki (R-Syracuse) introduced House Bill (HB) 1222, which would provide a state tax credit for individuals that adopt a child. The bill passed out of committee that Rep. Kubacki chairs, Family, Children and Human Affairs, and will now proceed to the House Ways and Means committee for further review. 

“I am incredibly honored to carry this bill, which is an agenda item for Governor Pence,” said Rep. Kubacki. “Having been through the process of adoption myself, I understand what a gift it is to be able to adopt children for parents who are not ready to be parents themselves.”

After a unanimous vote in committee, 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. 

“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 am so happy that I was able to be a part of something that is going to bring so many happy families together.”