Under current Missouri law, a person who adopts a child is eligible to receive a tax credit of up to $10,000 for nonrecurring expenses. State Rep. Hannah Kelly, R-Mountain Grove, is proposing to modify Missouri’s adoption tax credit.
Kelly’s proposal states that, as of July, the adoption limit would be lifted and by next year, any amount that is issued that exceeds the tax due will be refunded.
Kelly tells Missourinet that, not only has she both adopted and fostered, she recognizes that the costs can be expensive.
“(I) needed more things than what the allowance would cover, and I was blessed to be able to get those things for them. But looking back, it would have been so wonderful to be able to, you know, to apply towards a foster care tax credit at the end of the year to help balance my own books,” she said.
Kelly explained that the system pushes older kids that get stuck in it off to the side, adding that it’s an unfortunate fact that she has experienced and others as well.
“So now here we are with the reality that those tax credits were not refundable, and basically what we’re doing with this is we’re seeking to make those tax credits refundable up to $10,000 worth of expenses per household,” she explains. “This is also going to remove the annual cap on the tax credits.”
The total for the tax credits will also be adjusted annually for cost-of-living increases.
Written opposition to the bill says that the $10,000 per year limit is already generous and that adoption agencies could profit off of adoption.
House Bill 714 could be debated soon.
Copyright 2023 Missourinet
