Good news for families thinking about adopting a baby in Indiana: Governor Mike Pence has recently signed into law a new tax credit for Hoosier families that adopt.After Pence announced in his recent State of the State address that he wanted Indiana to be “the most pro-adoption state in America”, the state legislature began work on the tax credit bill, HEA 1222.
The new law will take effect beginning taxable year 2015, and will grant families a non-refundable $1,000 tax credit per eligible child. In the future this amount could change because its tied to the federal Adoption Tax Credit. Indiana will offer either 10% of the federal level, or $1,000, whichever is less.
In addition to the tax credit, the new law also establishes a committee to study adoption services nationwide, and make recommendations based on their findings. This committee will provide a report to the Governor and the Indiana Department of Child Services by this coming November.
Many adoption professionals have hopes this will lead to more adoption friendly policies in Indiana, including a potential subsidy for adoptive families.