(The Center Square) – Georgia House passed a bill Monday to increase tax credits for toiletries adoption in the state.
House bill 114 increases the annual tax incentive for adopting a foster child from $ 2,000 to $ 6,000. Proponents of the law, including Governor Brian Kemp, hope the legislation will encourage more Georgians to adopt foster children.
The bill cleared the house, 158-0, with no dispute.
Officials estimate the measure could lead to a state Revenue loss of $ 4.8 million over the next five years. According to a tax bill from the Department of Auditing and Accounting, if it becomes law, HB 114 could reduce state tax revenue by $ 400,000 in FY 2022 and grow it to as much as $ 1.5M in FY 2026.
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The average foster family adoption tax credit is $ 1,945, below the current threshold, said Rep. Bert Reeves, R-Marietta, a sponsor of the bill.
HB 114 only increases the tax credit to $ 6,000 for the first five years after adopting a child. The parents would continue to receive a $ 2,000 tax credit until the child turns 18. The credit cannot exceed what the taxpayer owes during the tax year. The bill also eliminates the transfer of new credits under applicable law.
According to the Department of Family and Children’s Services, Georgia had around 12,096 children in foster care in early February. There are almost 140 foster children up for adoption Georgia’s adoption photo list Website.
HB 114 is now going to the Senate. If it passes the Senate, it has to be approved by Kemp to become law.