Iowa HF965 increases the adoption tax credit to $20,000 per adoption and makes it refundable.

Iowa HF965 modifies the adoption tax credit to increase it to up to $20,000 per adoption, allowing any excess credit over the tax liability to be refundable. The credit covers qualified adoption expenses, including medical and hospital expenses of the biological mother, welfare agency fees, legal fees, and other related costs. The bill applies retroactively to tax years beginning on or after January 1, 2024, for adoptions finalized on or after that date.

Iowa HF965 increases the adoption tax credit to $20,000 per adoption and makes it refundable.

Iowa HF965 modifies the adoption tax credit to increase it to up to $20,000 per adoption, allowing any excess credit over the tax liability to be refundable. The credit covers qualified adoption expenses, including medical and hospital expenses of the biological mother, welfare agency fees, legal fees, and other related costs. The bill applies retroactively to tax years beginning on or after January 1, 2024, for adoptions finalized on or after that date.