Bill Text: IA HF2082 | 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. (See Cmte. Bill HF 2268)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-04-15 - Withdrawn. H.J. 725. [HF2082 Detail]
Download: Iowa-2013-HF2082-Introduced.html
House
File
2082
-
Introduced
HOUSE
FILE
2082
BY
HESS
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
4
state
of
an
eligible
individual
by
a
licensed
agency
under
5
chapter
238,
by
an
agency
that
meets
the
provisions
of
the
6
interstate
compact
in
section
232.158,
or
by
a
person
making
an
7
independent
placement
according
to
the
provisions
of
chapter
8
600.
9
b.
“Child
with
special
needs”
means
the
same
as
defined
in
10
section
23
of
the
Internal
Revenue
Code.
11
c.
“Eligible
individual”
means
an
individual
who
is
under
12
the
age
of
eighteen
years,
or
an
individual
who
is
unable,
by
13
reason
of
physical
or
mental
disability,
to
live
independently.
14
d.
“Qualified
adoption
expenses”
means
unreimbursed
15
expenses
paid
or
incurred
in
connection
with
the
adoption
16
of
an
eligible
individual,
including
medical
and
hospital
17
expenses
of
the
biological
mother
which
are
incident
to
the
18
eligible
individual’s
birth,
welfare
agency
fees,
legal
fees,
19
and
all
other
fees
and
costs
which
relate
to
the
adoption
of
20
an
eligible
individual.
“Qualified
adoption
expenses”
does
not
21
include
expenses
paid
or
incurred
in
violation
of
state
or
22
federal
law.
23
2.
The
taxes
imposed
under
this
division,
less
the
credits
24
allowed
under
section
422.12,
shall
be
reduced
by
an
adoption
25
tax
credit
equal
to
the
amount
of
qualified
adoption
expenses
26
paid
or
incurred
by
the
taxpayer
during
the
tax
year
in
27
connection
with
the
adoption
of
an
eligible
individual
by
the
28
taxpayer,
not
to
exceed
two
thousand
five
hundred
dollars
per
29
adoption,
or
five
thousand
dollars
if
the
adopted
eligible
30
individual
is
a
child
with
special
needs.
31
3.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
32
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
33
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
34
credited
to
the
tax
liability
for
the
following
tax
year.
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Sec.
2.
Section
422.9,
subsection
2,
paragraph
c,
Code
2014,
1
is
amended
to
read
as
follows:
2
c.
Add
the
amount
by
which
expenses
paid
or
incurred
3
in
connection
with
the
adoption
of
a
child
by
the
taxpayer
4
exceed
three
percent
of
the
net
income
of
the
taxpayer,
or
of
5
the
taxpayer
and
spouse
in
the
case
of
a
joint
return.
The
6
expenses
may
include
medical
and
hospital
expenses
of
the
7
biological
mother
which
are
incident
to
the
child’s
birth
and
8
are
paid
by
the
taxpayer,
welfare
agency
fees,
legal
fees,
and
9
all
other
fees
and
costs
relating
to
the
adoption
of
a
child
if
10
the
child
is
placed
by
a
child-placing
agency
licensed
under
11
chapter
238
or
by
a
person
making
an
independent
placement
12
according
to
the
provisions
of
chapter
600
.
If
the
taxpayer
13
claims
an
adoption
tax
credit
under
section
422.12A,
the
14
taxpayer
shall
recompute
for
purposes
of
this
subsection
the
15
amount
of
the
deduction
by
excluding
the
amount
of
qualified
16
adoption
expenses,
as
defined
in
section
422.12A,
used
in
17
computing
the
adoption
tax
credit.
18
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
19
retroactively
to
January
1,
2014,
for
tax
years
beginning
on
20
or
after
that
date.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
provides
an
individual
income
tax
credit
equal
to
25
the
amount
of
qualified
adoption
expenses
paid
or
incurred
by
a
26
taxpayer
during
the
tax
year
in
connection
with
the
adoption
of
27
an
eligible
individual.
The
tax
credit
cannot
exceed
$2,500
28
per
adoption,
or
$5,000
if
the
adopted
eligible
individual
is
a
29
child
with
special
needs.
30
The
adoption
of
a
person
qualifies
for
the
tax
credit
if
31
the
adoption
is
completed
by
a
child-placing
agency
licensed
32
under
Code
chapter
238,
an
agency
complying
with
the
interstate
33
compact
on
placement
of
children
in
Code
section
232.158,
or
a
34
person
petitioning
for
an
independent
placement
according
to
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the
provisions
of
Code
chapter
600,
and
if
the
person
to
be
1
adopted
is
to
be
permanently
placed
in
this
state
and
is
either
2
less
than
18
years
old
or
unable
to
live
independently
because
3
of
physical
or
mental
disability.
4
“Child
with
special
needs”
means
the
same
as
defined
in
5
section
23
of
the
Internal
Revenue
Code,
which
generally
6
defines
such
child
to
be
one
who
is
a
United
States
citizen
or
7
resident,
for
whom
the
state
has
determined
cannot
be
returned
8
to
the
home
of
the
child’s
parents,
and
for
whom
the
state
9
has
determined
there
exists
specific
conditions
that
make
it
10
reasonable
to
assume
the
child
cannot
be
placed
with
adoptive
11
parents
without
providing
adoption
assistance.
12
In
order
to
be
“qualified
adoption
expenses”
the
expenses
13
must
be
paid
or
incurred
by
the
taxpayer
during
the
tax
year,
14
unreimbursed,
and
connected
with
the
adoption.
“Qualified
15
adoption
expenses”
include
medical
and
hospital
expenses
of
16
the
biological
mother
which
are
incident
to
the
birth
of
17
the
adopted
individual,
welfare
agency
and
legal
fees,
and
18
all
other
fees
and
costs
relating
to
the
adoption
of
the
19
individual.
“Qualified
adoption
expenses”
does
not
include
20
expenses
paid
or
incurred
in
violation
of
state
or
federal
law.
21
Under
Iowa
law,
a
taxpayer
may
claim
an
itemized
deduction
22
for
the
amount
of
adoption
expenses
that
exceed
3
percent
23
of
the
net
income
of
the
taxpayer.
The
bill
provides
that
24
taxpayers
who
claim
the
itemized
deduction
are
required
25
to
reduce
that
deduction
by
the
amount
of
expenses
used
to
26
calculate
the
adoption
tax
credit.
27
Any
credit
in
excess
of
the
taxpayer’s
liability
is
28
refundable
or
may
be
carried
forward
one
tax
year
at
the
29
election
of
the
taxpayer.
30
The
bill
applies
retroactively
to
tax
years
beginning
on
or
31
after
January
1,
2014.
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