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Proyectos de ley › 91.ª Asamblea General

Relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions

Presentado por Rep. Eddie Andrews (R), Rep. Brett Barker (R), Rep. Michael R. Bergan (R), Rep. Brooke Boden (R), Rep. Jacob Bossman (R), Rep. Taylor R. Collins (R), Rep. Cindy Golding (R), Rep. Pat Grassley (R), Rep. Bill Gustoff (R), Rep. Bob Henderson (R), Rep. Steven C. Holt (R), Rep. Heather Hora (R), Rep. Chad Ingels (R), Rep. Craig P. Johnson (R), Rep. Megan Jones (R), Rep. Brian K. Lohse (R), Rep. Barb Kniff McCulla (R), Rep. Joshua Meggers (R), Rep. Ann Meyer (R), Rep. Carter F. Nordman (R), Rep. Matthew Rinker (R), Rep. Jennifer J. Smith (R), Rep. Mike Vondran (R), Rep. Ryan Weldon (R), Rep. Hans C. Wilz (R), Rep. Devon Wood (R), Rep. Derek Wulf (R), Rep. David E. Young (R)

Temas:Families & human servicesTaxesIncome taxesTax credits & incentives

La misma legislación: HF 1026

Escriba a sus legisladores sobre esto

También incluye HF 1026.

Página oficial del proyectoDeclaraciones de cabilderosUna página para imprimir

Dónde está ahora

  1. Hecho: Presentado17 de marzo de 2025
  2. Hecho: Subcomité8 de abril de 2025
  3. Hecho: Comité de la Cámara16 de abril de 2025
  4. Se saltó: Lo aprueba la CámaraSigue como HF 1026
  5. Sigue: Comité del Senado
  6. Sigue: Lo aprueba el Senado
  7. Sigue: A gobernador(a)
  8. Sigue: Firmado como ley

Ahora es HF 1026 → Sigue avanzando con el número nuevo. Ir a HF 1026 ¿Qué es el embudo (funnel)?

Qué contiene

Resumen con IA People who adopt a child can receive a larger tax credit to help cover their adoption costs. The amount of this credit would increase from up to $5,000 to up to $20,000 per adoption. If the credit is more than what you owe in taxes, you will get the extra money back as a refund. (Todavía no está traducido al español.)1

Lea la explicación oficial (en inglés)

This bill relates to the adoption tax credit available against the individual income tax. Currently, the tax credit equals up to $5,000 of qualified adoption expenses per adoption. The bill increases the tax credit to equal up to $20,000 of qualified adoption expenses per adoption. Any credit in excess of the tax liability is refundable. “Qualified adoption expenses” means unreimbursed expenses paid or incurred in connection with the adoption of a child, including medical and hospital expenses of the biological mother which are incident to the child’s birth, welfare agency fees, legal fees, and all other fees and costs which relate to the adoption of a child. “Child” means an individual under years of age.12A(4) determines the tax year when qualified adoption expenses are allowed. The bill takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2024, for adoptions finalized on or after that date.

Texto completo del proyecto (en inglés)2

House subcommittee

Named April 8, 2025. On April 9, 2025 it recommended passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Nota fiscal

Resumen con IA This bill increases the maximum refundable Adoption Tax Credit from $5,000 to $20,000 per qualified adoption. It is projected to decrease net General Fund revenue by $4.4 million in fiscal year 2026, $2.4 million in fiscal year 2027, $2.4 million in fiscal year 2028, $2.5 million in fiscal year 2029, $2.5 million in fiscal year 2030, $2.5 million in fiscal year 2031, and $2.6 million in fiscal year 2032. (en inglés)3

Lea la nota fiscal (en inglés)

Description

House File 1026 increases the maximum amount of the existing Adoption Tax Credit from $5,000 to $20,000 per qualified adoption. The tax credit is refundable. The Bill takes effect upon enactment and is retroactively effective for tax years beginning on or after January 1, 2024.

Background

The existing Adoption Tax Credit is based on the amount of unreimbursed adoption expenses paid by the taxpayer as part of a qualified adoption and is claimed through the filing of Iowa tax form IA 177. The credit may only be claimed after a qualified adoption becomes final. The credit limit applies per adoption (as opposed to per taxpayer or per household). For tax year (TY) 2014 through TY 2016, the maximum amount of the tax credit was $2,500 per adoption. Beginning on or after January 1, 2017, the maximum amount of the tax credit was increased to $5,000 per adoption. According to an Iowa Department of Revenue (IDR) factsheet, from FY 2014 through FY 2020, 2,386 households claimed the tax credit for 2,966 adoptions. In TY 2021, 220 tax credits were claimed for adoptions, and the average tax credit equaled $3,200. Of the 220 claims, 87 claimed the maximum amount of $5,000. Adoption expenses reported on the IA 177 equal an average of $9,800 in TY 2021 with a median of $1,500. In FY 2024, $848,000 was redeemed from the Adoption Tax Credit according to the March 2025 Contingent Liabilities Report.

Qualified adoption expenses include unreimbursed expenses paid or incurred in connection with 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 under 18 years of age.

Assumptions

  • The tax reduction associated with changes to the tax credit is assumed to occur when tax returns are filed (decreased final tax payments and increased tax refunds).
  • Because the tax credit is refundable, the calculation of the income surtax for schools is not affected by the proposed increase in the credit.
  • The tax credit will be available to be claimed against individual income tax for tax years beginning on January 1, 2024, including TY 2024 and TY 2025.
  • The initial fiscal impact for claims under the Bill will occur in FY 2026, including retroactive claims against TY 2024 and TY 2025.
  • The total amount claimed against individual income tax for TY 2024 and TY 2025 equals $2.4 million, to be applied against General Fund revenue in FY 2026.
  • According to the IDR, it is assumed that 100.0% of the tax credits will be claimed, with the timing of claims indicated below:
  • Year 0 — 0.1%
  • Year 1 — 84.0%
  • Year 2 — 12.4%
  • Year 3 — 2.0%
  • Year 4 — 1.3%
  • Year 5 — 0.2%
  • The average adoption expense used for the purposes of this fiscal analysis is $8,000 for 300 annual adoptions that redeem the tax credit.
  • Adoption expenses are inflated at 1.0% annually beginning in TY 2026.

Fiscal Impact

House File 1026 is projected to decrease net General Fund revenue by the following amounts:

  • FY 2026 = $4.4 million
  • FY 2027 = $2.4 million
  • FY 2028 = $2.4 million
  • FY 2029 = $2.5 million
  • FY 2030 = $2.5 million
  • FY 2031 = $2.5 million
  • FY 2032 = $2.6 million

Sources

  • Iowa Department of Revenue
  • Legislative Services Agency analysis

Cómo leer una nota fiscal4

Lo que cambia del Código de Iowa (Iowa Code)

Modifica§422.12A

Cómo funciona el Código5

Cabildeo

4 a favor · 0 en contra · 2 indecisos · Quiénes →

Family tree

Tried before

HF 2637Passed a chamber90th GAHF 2243Renumbered90th GA

91st General Assembly

HF 965RenumberedHF 1026Passed a chamberfrom HF 965

Earlier and later bills are matched by wording or an identical title.

Tried before

This idea has been filed in an earlier General Assembly. None became law, though one got through a chamber.

  • HF 2243 Relating to the adoption tax credit available against the individual income tax, and inclu…
    90th General Assembly · Renumbered as HF 2637 · same title
    Cleared committee
  • HF 2637 Relating to the adoption tax credit available against the individual income tax, and inclu…
    90th General Assembly · Passed House · same title
    Passed a chamber

Matched by wording or an identical title.