Bill Text: IA HF2268 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act providing an individual income tax credit for qualified adoption expenses paid or incurred in connection with certain adoptions and including retroactive applicability provisions. (Formerly HF 2082)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2014-04-15 - Withdrawn. H.J. 725. [HF2268 Detail]
Download: Iowa-2013-HF2268-Introduced.html
House
File
2268
-
Introduced
HOUSE
FILE
2268
BY
COMMITTEE
ON
HUMAN
RESOURCES
(SUCCESSOR
TO
HF
2082)
A
BILL
FOR
An
Act
providing
an
individual
income
tax
credit
for
qualified
1
adoption
expenses
paid
or
incurred
in
connection
with
2
certain
adoptions
and
including
retroactive
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
422.12A
Adoption
tax
credit.
1
1.
For
purposes
of
this
section,
unless
the
context
2
otherwise
requires:
3
a.
“Adoption”
means
the
permanent
placement
in
this
state
of
4
an
eligible
individual
by
the
department
of
human
services,
by
5
a
licensed
agency
under
chapter
238,
by
an
agency
that
meets
6
the
provisions
of
the
interstate
compact
in
section
232.158,
or
7
by
a
person
making
an
independent
placement
according
to
the
8
provisions
of
chapter
600.
9
b.
“Child
with
special
needs”
means
an
individual,
10
regardless
of
citizenship,
who
is
under
the
age
of
eighteen
11
years
and
who
has
been
determined
by
the
department
of
human
12
services
prior
to
the
finalization
of
the
adoption
to
be
a
13
child
with
physical
or
mental
disabilities
or
an
older
or
14
otherwise
hard-to-place
child.
A
child
shall
not
fail
to
15
qualify
as
a
child
with
special
needs
because
the
person
16
adopting
the
child
does
not
receive
financial
assistance
17
pursuant
to
section
600.17.
18
c.
“Eligible
individual”
means
an
individual
who
is
under
19
the
age
of
eighteen
years,
or
an
individual
who
is
unable,
by
20
reason
of
physical
or
mental
disability,
to
live
independently.
21
d.
“Qualified
adoption
expenses”
means
unreimbursed
22
expenses
paid
or
incurred
in
connection
with
the
adoption
23
of
an
eligible
individual,
including
medical
and
hospital
24
expenses
of
the
biological
mother
which
are
incident
to
the
25
eligible
individual’s
birth,
welfare
agency
fees,
legal
fees,
26
and
all
other
fees
and
costs
which
relate
to
the
adoption
of
27
an
eligible
individual.
“Qualified
adoption
expenses”
does
not
28
include
expenses
paid
or
incurred
in
violation
of
state
or
29
federal
law.
30
2.
The
taxes
imposed
under
this
division,
less
the
credits
31
allowed
under
section
422.12,
shall
be
reduced
by
an
adoption
32
tax
credit
equal
to
the
amount
of
qualified
adoption
expenses
33
paid
or
incurred
by
the
taxpayer
during
the
tax
year
in
34
connection
with
the
adoption
of
an
eligible
individual
by
the
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taxpayer,
not
to
exceed
two
thousand
five
hundred
dollars
per
1
adoption,
or
five
thousand
dollars
if
the
adopted
eligible
2
individual
is
a
child
with
special
needs.
3
3.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
4
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
5
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
6
credited
to
the
tax
liability
for
the
following
tax
year.
7
4.
The
department
of
revenue
and
the
department
of
human
8
services
shall
each
adopt
rules
to
jointly
administer
this
9
section.
10
Sec.
2.
Section
422.9,
subsection
2,
paragraph
c,
Code
2014,
11
is
amended
to
read
as
follows:
12
c.
Add
the
amount
by
which
expenses
paid
or
incurred
13
in
connection
with
the
adoption
of
a
child
by
the
taxpayer
14
exceed
three
percent
of
the
net
income
of
the
taxpayer,
or
of
15
the
taxpayer
and
spouse
in
the
case
of
a
joint
return.
The
16
expenses
may
include
medical
and
hospital
expenses
of
the
17
biological
mother
which
are
incident
to
the
child’s
birth
and
18
are
paid
by
the
taxpayer,
welfare
agency
fees,
legal
fees,
and
19
all
other
fees
and
costs
relating
to
the
adoption
of
a
child
if
20
the
child
is
placed
by
a
child-placing
agency
licensed
under
21
chapter
238
or
by
a
person
making
an
independent
placement
22
according
to
the
provisions
of
chapter
600
.
If
the
taxpayer
23
claims
an
adoption
tax
credit
under
section
422.12A,
the
24
taxpayer
shall
recompute
for
purposes
of
this
subsection
the
25
amount
of
the
deduction
by
excluding
the
amount
of
qualified
26
adoption
expenses,
as
defined
in
section
422.12A,
used
in
27
computing
the
adoption
tax
credit.
28
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
29
retroactively
to
January
1,
2014,
for
tax
years
beginning
on
30
or
after
that
date.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
provides
an
individual
income
tax
credit
equal
to
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the
amount
of
qualified
adoption
expenses
paid
or
incurred
by
a
1
taxpayer
during
the
tax
year
in
connection
with
the
adoption
of
2
an
eligible
individual.
The
tax
credit
cannot
exceed
$2,500
3
per
adoption,
or
$5,000
if
the
adopted
eligible
individual
is
a
4
child
with
special
needs.
5
The
adoption
of
a
person
qualifies
for
the
tax
credit
if
6
the
adoption
is
completed
by
the
department
of
human
services,
7
a
child-placing
agency
licensed
under
Code
chapter
238,
an
8
agency
complying
with
the
interstate
compact
on
placement
of
9
children
in
Code
section
232.158,
or
a
person
petitioning
10
for
an
independent
placement
according
to
the
provisions
of
11
Code
chapter
600,
and
if
the
person
to
be
adopted
is
to
be
12
permanently
placed
in
this
state
and
is
either
less
than
18
13
years
old
or
unable
to
live
independently
because
of
physical
14
or
mental
disability.
15
“Child
with
special
needs”
means
an
individual,
regardless
16
of
citizenship,
who
is
under
18
years
of
age
and
who
has
been
17
determined
by
the
department
of
human
services
prior
to
the
18
finalization
of
the
adoption
to
be
a
child
with
physical
or
19
mental
disabilities
or
an
older
or
otherwise
hard-to-place
20
child,
regardless
of
whether
the
person
adopting
the
child
21
receives
financial
assistance
pursuant
to
Code
section
600.17.
22
In
order
to
be
“qualified
adoption
expenses”
the
expenses
23
must
be
paid
or
incurred
by
the
taxpayer
during
the
tax
year,
24
unreimbursed,
and
connected
with
the
adoption.
“Qualified
25
adoption
expenses”
include
medical
and
hospital
expenses
of
26
the
biological
mother
which
are
incident
to
the
birth
of
27
the
adopted
individual,
welfare
agency
and
legal
fees,
and
28
all
other
fees
and
costs
relating
to
the
adoption
of
the
29
individual.
“Qualified
adoption
expenses”
does
not
include
30
expenses
paid
or
incurred
in
violation
of
state
or
federal
law.
31
Under
Iowa
law,
a
taxpayer
may
claim
an
itemized
deduction
32
for
the
amount
of
adoption
expenses
that
exceed
3
percent
33
of
the
net
income
of
the
taxpayer.
The
bill
provides
that
34
taxpayers
who
claim
the
itemized
deduction
are
required
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to
reduce
that
deduction
by
the
amount
of
expenses
used
to
1
calculate
the
adoption
tax
credit.
2
Any
credit
in
excess
of
the
taxpayer’s
liability
is
3
refundable
or
may
be
carried
forward
one
tax
year
at
the
4
election
of
the
taxpayer.
5
The
bill
applies
retroactively
to
tax
years
beginning
on
or
6
after
January
1,
2014.
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