SCS/HCS/HB 1485 - The act requires two million dollars in tax credits be made available annually for resident adoptions. The cumulative amount of adoption tax credit which may be issued annually is limited to four million dollars, but such limit may be increased by appropriation. Applications for resident adoption tax credits must be filed between July 1st and April 15th of each year. Applications for non-resident adoption tax credits must be filed between July 1st and December 31st of each year. The act repeals the requirement that the director of the department of revenue submit an annual report to the general assembly on the income levels of taxpayers claiming the adoption tax credit. The act creates the "Children in Crisis" tax credit which is equal to up to fifty percent of an approved contribution to a qualified agency which includes entities receiving funding under the court appointed special advocate fund, child advocacy, or crisis care centers. In order to become an eligible agency, an agency must apply to the department of social services prior to December 31st of each year. Upon a determination that an agency is eligible as a qualified agency, the department of social services will provide the agency with a letter of eligibility. The department of social services is required to provide the department of revenue with a list of all qualified agencies no later than February 1st of each year. Upon receipt of a contribution, a qualified agency will issue a contribution verification. In order to claim the tax credit provided under this section, a taxpayer must attach the contribution verification to such taxpayer's income tax return.
The children in crisis tax credit is non-refundable, but may be carried forward for up to five consecutive years. The children in crisis tax credit has a cumulative cap equal to the unclaimed portion of the resident adoption tax credit. The amount of remaining credits under the resident adoption tax credit program shall be divided equally among contributions to the agencies eligible under the children in crisis tax credit. In the event the total amount of tax credits claimed exceeds the amount available, the amount redeemed will be apportioned equally to all eligible taxpayers claiming the credit. In the event the children in crisis tax credits do not use all of the remaining tax credits under the resident adoption tax credit program, the remaining amount shall be used for non-resident adoption tax credits.
The director of the Department of Revenue must annually calculate and report to the general assembly and the office of budget and planning the level of appropriation necessary to issue all credits for non-resident special needs adoptions. The report must be submitted by January 31st of each year.
This act authorizes an income tax credit for 50% of contributions to qualified pregnancy resource centers. Pregnancy resource centers are nonresidential facilities that provide assistance and support to women with crisis or unplanned pregnancies and do not provide abortions or referrals for abortion services. The tax credit may be taken against income tax, corporate franchise tax, insurance premium tax, financial institutions tax, and express company tax liability. The tax credit is not refundable, but can be carried forward and claimed for up to four taxable years. The maximum credit a taxpayer can claim is $50,000 per year, and the minimum contribution must be at least $100. The statewide maximum of tax credits that can be taken in any one year is $2 million. The Department of Social Services is to designate the centers and apportion the credits when the applications exceed the statewide cap. The provisions of this act shall expire six years from the effective date unless reauthorized.
JASON ZAMKUS