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It does not get much more pro-life and pro-family than supporting adoption by defraying the costs associated. That is just what House File 100 does by doubling the adoption tax credit in Iowa. Currently, a tax credit is available equal to the amount of qualified adoption expenses paid or incurred by the taxpayer during the tax year associated with the adoption of a child under 18 years old by the taxpayer.
Qualified adoption expenses are unreimbursed expenses related to the adoption of a child, including medical and hospital expenses of the biological mother that are incident to the child’s birth, welfare agency fees, legal fees, and all other fees and costs that relate to the adoption of a child. The credit is not transferable, but is refundable.
The maximum credit amount allowed was $2,500 per adoption for adoptions finalized in tax years 2014 through 2016 and then increased to $5,000 for tax years beginning on or after January 1, 2017. House File 100 doubles that amount over two years starting with a new limit of $7,500 in tax year 2022 and $10,000 in tax year 2023 and will match the federal adoption tax credit.
The bill is now eligible for debate by the full House and if it becomes law would make Iowa one of the best states in supporting adoptions.
