An Iowa Congressman has introduced a bill that would keep a tax credit in place for families that choose to adopt children. Bruce Braley, a Democrat from Waterloo, says his “Making Adoption Affordable Act” would help offset the fees families face when they adopt.
A tax credit for those families is set to expire at the end of this year. “I’m calling on my colleagues to permanently renew the adoption tax credit and keep it at it’s current level, although it has dropped down $1,000 because of provisions that went into effect at the end of last year,” Braley said. “I’m asking that to be restored to its previous level of $13,360.”
The fees adoptive families pay to complete the process can range from $15,000 to $30,000. Braley notes the tax credit benefits all taxpayers as foster care costs average $47,000 per child, per year.
“We know the cost of taking care of foster children is much greater than that one time tax credit on an annual basis,” Braley said. “We’ve seen a dramatic increase in the number of adoptions since these tax credits were improved under both the Bush and Obama administrations.”
When the adoption tax credit was expanded in 2004, it was claimed in nearly 87,000 adoptions. That compared to 50,400 adoption tax credit claims in 1998.