Iowa HF1026 increases the adoption tax credit from $5,000 to $20,000 per adoption.

Iowa HF1026 amends the adoption tax credit available against the individual income tax. The bill raises the credit limit from $5,000 to $20,000 for qualified adoption expenses per adoption. These expenses include medical and hospital costs for the biological mother, welfare agency fees, legal fees, and other related costs. The credit applies to adoptions finalized on or after January 1, 2024, and is effective upon enactment. Any credit exceeding the tax liability is refundable.

Iowa HF1026 increases the adoption tax credit from $5,000 to $20,000 per adoption.

Iowa HF1026 amends the adoption tax credit available against the individual income tax. The bill raises the credit limit from $5,000 to $20,000 for qualified adoption expenses per adoption. These expenses include medical and hospital costs for the biological mother, welfare agency fees, legal fees, and other related costs. The credit applies to adoptions finalized on or after January 1, 2024, and is effective upon enactment. Any credit exceeding the tax liability is refundable.