An Act Establishing A Credit Against The Personal Income Tax For Adoption Expenses.
Impact
The enactment of HB 5467 is expected to have a notable impact on state laws concerning personal income tax. By allowing a tax credit specifically for adoption expenses, the bill seeks to encourage more families to consider adoption as a viable option for child-rearing. This aligns with broader goals of promoting child welfare and supporting families looking to adopt, while also potentially increasing the number of children placed in stable family environments.
Summary
House Bill 5467 introduces a personal income tax credit aimed specifically at supporting families who incur expenses related to the adoption of a child on or after January 1, 2020. Under the provisions of this bill, qualifying residents can claim a tax credit of one thousand five hundred dollars for adoption expenses in the first year they file their federal income tax return claiming the adopted child as a dependent. This financial incentive is intended to alleviate some of the financial challenges faced by families during the adoption process.
Contention
While the bill generally garners bipartisan support due to its focus on family welfare, there may be contention regarding funding implications associated with the tax credit. Critics could argue that introducing a new tax credit could affect the overall state budget, particularly if the number of families claiming the credit exceeds estimates. Additionally, some may question whether a flat tax credit truly addresses the varying costs associated with different adoption scenarios, suggesting that a tiered system may be more equitable.