SB 461 - This act modifies provisions relating to tax relief for the costs of caring for certain children.ADOPTION TAX CREDITS
Current law authorizes the Special Needs Adoption Tax Credit for nonrecurring expenses relating to the adoption of a special needs child. This act modifies such program by renaming it the Adoption Tax Credit, and by expanding such program to allow tax credits for nonrecurring expenses relating to the adoption of any child adopted on or after January 1, 2022, regardless of whether such child is a special needs child. (Sections 135.325 to 135.800, 191.975)
These provisions are substantially similar to HB 361 (2021) and to provisions contained in HCS#2/SS/SB 327 (2021), SS/SCS/HCS/HB 429 (2021), SS/SCS/HCS/HB 430 (2021), and HCS/HB 1095 (2021).
FOSTER CARE TAX DEDUCTION
For all tax years beginning on or after January 1, 2022, this act authorizes a tax deduction for expenses incurred directly by a taxpayer in providing care as a foster parent to one or more children in this state. The amount of such deduction for a taxpayer proving care as a foster parent for at least six months during the tax year shall not exceed $2,500 if filing single, or $5,000 if filing married combined. For a taxpayer providing care for less than six months during the tax year, the amount of the deduction shall be reduced on a pro rata basis.
A taxpayer claiming a deduction pursuant to this act shall file an affidavit affirming that such taxpayer is a foster parent, and the Department of Revenue shall collaborate with the Children's Division of the Department of Social Services to establish and implement a procedure to verify that a taxpayer is a foster parent. (Section 143.1170)
This provision shall sunset on December 31, 2027, unless reauthorized by the General Assembly.
This provision is substantially similar to a provision contained in HCS#2/SS/SB 327 (2021) and SS/SCS/HCS/HB 429 (2021).
JOSH NORBERG