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House File 67 - IntroducedA Bill ForAn Act 1relating to the adoption tax credit available against
2the individual income tax.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.12A, subsection 2, Code 2023, is
2amended to read as follows:
32. a. (1) The For tax years beginning before January
41, 2024, the taxes imposed under this subchapter, less the
5credits allowed under section 422.12, shall be reduced by an
6adoption tax credit equal to the amount of qualified adoption
7expenses paid or incurred by the taxpayer in connection with
8the adoption of a child by the taxpayer, not to exceed five
9thousand dollars per adoption.
10(2) This paragraph is repealed January 1, 2029.
11b. (1) For the tax year beginning January 1, 2024, the
12taxes imposed under this subchapter, less the credits allowed
13under section 422.12, shall be reduced by an adoption tax
14credit equal to the amount of qualified adoption expenses paid
15or incurred by the taxpayer in connection with the adoption
16of a child by the taxpayer, not to exceed seven thousand five
17hundred dollars per adoption.
18(2) This paragraph is repealed January 1, 2030.
19c. For tax years beginning on or after January 1, 2025, the
20taxes imposed under this subchapter, less the credits allowed
21under section 422.12, shall be reduced by an adoption tax
22credit equal to the amount of qualified adoption expenses paid
23or incurred by the taxpayer in connection with the adoption of
24a child by the taxpayer, not to exceed ten thousand dollars per
25adoption.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to the adoption tax credit available
30against the individual income tax.
31Currently, the adoption tax credit equals the amount of
32qualified adoption expenses paid or incurred by the taxpayer in
33connection with the adoption of a child, not to exceed $5,000
34per adoption.
35The bill phases in an increase to the maximum amount of the
-1-1adoption tax credit as follows: for the tax year beginning
2January 1, 2024, the maximum amount of the adoption tax credit
3increases from $5,000 per adoption to $7,500 per adoption;
4and for tax years beginning on or after January 1, 2025, the
5maximum amount of the tax credit increases from $7,500 per
6adoption to $10,000 per adoption.
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2the individual income tax.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.12A, subsection 2, Code 2023, is
2amended to read as follows:
32. a. (1) The For tax years beginning before January
41, 2024, the taxes imposed under this subchapter, less the
5credits allowed under section 422.12, shall be reduced by an
6adoption tax credit equal to the amount of qualified adoption
7expenses paid or incurred by the taxpayer in connection with
8the adoption of a child by the taxpayer, not to exceed five
9thousand dollars per adoption.
10(2) This paragraph is repealed January 1, 2029.
11b. (1) For the tax year beginning January 1, 2024, the
12taxes imposed under this subchapter, less the credits allowed
13under section 422.12, shall be reduced by an adoption tax
14credit equal to the amount of qualified adoption expenses paid
15or incurred by the taxpayer in connection with the adoption
16of a child by the taxpayer, not to exceed seven thousand five
17hundred dollars per adoption.
18(2) This paragraph is repealed January 1, 2030.
19c. For tax years beginning on or after January 1, 2025, the
20taxes imposed under this subchapter, less the credits allowed
21under section 422.12, shall be reduced by an adoption tax
22credit equal to the amount of qualified adoption expenses paid
23or incurred by the taxpayer in connection with the adoption of
24a child by the taxpayer, not to exceed ten thousand dollars per
25adoption.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to the adoption tax credit available
30against the individual income tax.
31Currently, the adoption tax credit equals the amount of
32qualified adoption expenses paid or incurred by the taxpayer in
33connection with the adoption of a child, not to exceed $5,000
34per adoption.
35The bill phases in an increase to the maximum amount of the
-1-1adoption tax credit as follows: for the tax year beginning
2January 1, 2024, the maximum amount of the adoption tax credit
3increases from $5,000 per adoption to $7,500 per adoption;
4and for tax years beginning on or after January 1, 2025, the
5maximum amount of the tax credit increases from $7,500 per
6adoption to $10,000 per adoption.
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