DES MOINES, Iowa – On Tuesday afternoon, an Iowa House subcommittee advanced HF 100, which doubles the current adoption tax credit offered under Iowa law by 2023.
Iowa law currently caps the adoption tax credit that Iowans can claim against their income taxes at $5,000 per adoption for qualified adoption expenses. Under the legislation, the tax credit would increase to $7,500 in 2022 and increase to $10,000 in 2023.
State Reps. Joe Mitchell, R-Mount Pleasant, Timi Brown-Powers, D-Waterloo, and Megan Jones, R-Sioux Rapids, who made up the subcommittee, approved the bill.
“I was happy to see this bill,” Brown-Powers said during the subcommittee. “I think as we are looking at young families and affordability, and you know, just encouraging folks to adopt I think so it kind of opens up that door as well. I know that some people have looked into it and say that, you know, it’s above their means. And so maybe this would help families and encourage families to use adoption agencies more frequently.”
Jones said she is in full support, noting that Iowa is one of the few states with an adoption tax credit.
“Hopefully some day we can make them free,” she said.
Mitchell, who chaired the subcommittee, is also a sponsor of the bill.
“My sister is adopted from Guatemala, and two of my nieces are adopted from the foster care system. So adoption is something that I’m very passionate about and very supportive of, and especially for,people that consider themselves pro-life. I think we need to be (as) supportive of adoption as possible because that’s the alternative,” he said.
“I think this is a great bill and we’ll continue to advocate for bills like this in the future,” Mitchell added.
The bill goes before the full Iowa House Ways and Means Committee for consideration.