House Bill 206 would increase the amount and change the refundability of an existing tax credit for adoption. Under current law, this credit equals the greater of $1,500 or a taxpayer’s adoption expenses, up to $10,000.
The Bill increases the minimum credit that may be claimed from $1,500 to $5,000. The Bill also converts the credit to a refundable credit. Thus, if the credit exceeds the tax due, the difference is refunded to the taxpayer. Under current law, the credit is nonrefundable and any unclaimed excess may be carried forward up to five years.
These modifications apply for adoptions occurring in any taxable year ending on or after the Bills’ effective date.
On any given day, nearly 16,000 children in Ohio are living with foster families or in group homes. Foster care costs governments approximately $18,000 per year per child. The State will save money by taking children out of the system. Adoption can cost as high as $50,000.