Iowa 2023-2024 Regular Session

Iowa House Bill HF351

Introduced
2/20/23  
Engrossed
4/12/23  
Introduced
2/20/23  
Refer
4/13/23  
Engrossed
4/12/23  

Caption

A bill for an act relating to the adoption tax credit available against the individual income tax.(Formerly HF 67.)

Impact

The bill's implementation signifies a substantial shift in tax policy as it aims to alleviate the financial burden faced by adopting parents. With the increased tax credit amounts, the state anticipates that more families may consider adoption, potentially leading to an increase in the number of adoptions. Furthermore, this could reflect positively on state demographics by promoting stronger family units and participating citizens. Such a shift may also lead to budgetary considerations as the state evaluates the long-term fiscal impacts of providing enhanced tax incentives.

Summary

House File 351 is a legislative proposal that seeks to enhance the adoption tax credit available against the individual income tax in Iowa. Currently, taxpayers can receive a credit for qualified adoption expenses up to $5,000 per adoption. HF351 proposes a phased increase in this credit, beginning with a rise to $7,500 for the tax year starting January 1, 2024, and then to $10,000 for tax years commencing January 1, 2025. These changes aim to provide greater financial support to families who adopt children, thereby encouraging adoption and supporting family growth.

Contention

While HF351 is largely expected to enjoy bipartisan support due to its family-oriented objectives, there may be points of contention regarding the financial implications on state revenue. Critics may voice concerns about the impact of increasing tax credits, especially in terms of potential budget deficits from diminished revenue. Additionally, there could be debates surrounding the necessary qualification criteria for expenses under the new limits, as lawmakers and stakeholders discuss how best to structure these criteria to ensure that the tax benefit reaches those most in need.

Companion Bills

IA HF67

Similar To A bill for an act relating to the adoption tax credit available against the individual income tax.(See HF 351.)

Previously Filed As

IA HF67

A bill for an act relating to the adoption tax credit available against the individual income tax.(See HF 351.)

IA HF2637

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.)

IA HF1026

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.)

IA HF2243

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.)

IA HF965

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.)

IA SF391

A bill for an act creating an advanced registered nurse practitioner preceptor tax credit available against the individual income tax, and including applicability provisions.(Formerly SSB 1082.)

IA HSB130

A bill for an act creating the quantum technology tax credit available against the individual and corporate income taxes, and including applicability provisions.

IA HF157

A bill for an act creating a nurse preceptor tax credit available against the individual income tax, and including applicability provisions.

IA HSB69

A bill for an act relating to an entity-level taxation election for pass-through entities and allowing a partner or shareholder to claim a credit against the individual income tax.(See HF 352.)

IA HF211

A bill for an act creating a radon mitigation system tax credit available against the individual and corporate income taxes, and including retroactive applicability provisions.(See HF 1027.)

Similar Bills

No similar bills found.