A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.(See HF 1026.)
Impact
If enacted, HF965 would have a significant impact on Iowa's tax regulations related to adoption. The changes would apply retroactively to tax years beginning January 1, 2024, thus affecting those who finalize adoptions after this date. The bill specifies that any tax credit exceeding a taxpayer's liability would be refundable, thereby incentivizing more families to consider adopting children. It also clarifies what constitutes 'qualified adoption expenses,' enhancing clarity and compliance for taxpayers.
Summary
House File 965 aims to amend the existing adoption tax credit provided against the individual income tax in Iowa. The bill proposes increasing the tax credit from a maximum of $5,000 to $20,000 for qualified expenses incurred during the adoption process. This expansion is intended to alleviate the financial burden on families who are going through adoption, making it more accessible for prospective adoptive parents. Overall, this bill seeks to promote adoption and support families in their efforts to adopt children.
Contention
While the bill generally enjoys support among legislators for its pro-family stance, it may face debates regarding its fiscal implications for state revenue. Questions may arise about the sustainability of the increased tax credit and how it would affect the overall budget for social services in Iowa. There may also be discussions around the definitions of qualified expenses and the potential for fraud or misuse of the tax credits, which could lead to amendments or additional scrutiny during the legislative process.
Similar To
A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 965.)
A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.(See HF 2637.)
A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 2243.)
A bill for an act creating a private instruction organization tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.
A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.
A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.(See HF 2666.)
A bill for an act establishing a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax, and including effective date and retroactive applicability provisions.
A bill for an act creating an electric outdoor power equipment tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.