Bill Text: VA HB1553 | 2023 | Regular Session | Prefiled
Bill Title: Nonfamily adoptions; creates a nonrefundable tax credit for taxable years 2023 through 2027.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2023-02-07 - Left in Finance [HB1553 Detail]
Download: Virginia-2023-HB1553-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.14 as follows:
§58.1-339.14. Nonfamily adoption tax credit.
A. For the purposes of this section "nonfamily adoption" means an adoption of a child by a taxpayer who is not the father, mother, or stepparent of the child.
B. For taxable years beginning on and after January 1, 2023, but before January 1, 2028, an individual or married couple who finalize a legal, nonfamily adoption shall be allowed a nonrefundable credit against the tax levied pursuant to § 58.1-320. The amount of the credit shall be equal to $4,000. The credit provided by this section may only be claimed by one individual or married couple per adopted child.
C. The amount of the credit that may be claimed in any single taxable year shall not exceed the taxpayer's liability for taxes imposed by this chapter for that taxable year. If the amount of the credit allowed under this section exceeds the taxpayer's tax liability for the taxable year in which the eligible expenditures occurred, the amount that exceeds the tax liability may be carried over for credit against the income taxes of the taxpayer in the next three taxable years or until the total amount of the tax credit has been taken, whichever is sooner.
D. The Tax Commissioner shall develop guidelines for claiming the credit provided by this section. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§2.2-4000 et seq.).
