422.12A Adoption tax credit.

1. For purposes of this section, unless the context otherwise requires:

a. “Adoption” means the permanent placement in this state of a child by the department of human services, by an adoption service provider as defined in section 600A.2, or by an agency that meets the provisions of the interstate compact in section 232.158.

b. “Child” means an individual who is under the age of eighteen years.

c. “Qualified adoption expenses” means unreimbursed expenses paid or incurred in connection with the adoption of a child, including medical and hospital expenses of the biological mother which are incident to the child’s birth, welfare agency fees, legal fees, and all other fees and costs which relate to the adoption of a child. “Qualified adoption expenses” does not include expenses paid or incurred in violation of state or federal law.

2. The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by an adoption tax credit equal to the amount of qualified adoption expenses paid or incurred by the taxpayer during the tax year in connection with the adoption of a child by the taxpayer, not to exceed five thousand dollars per adoption.

3. Any credit in excess of the tax liability is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following tax year.

4. The department of revenue and the department of human services shall each adopt rules to jointly administer this section.

2014 Acts, ch 1113, §1, 3; 2016 Acts, ch 1128, §5, 17, 26; 2017 Acts, ch 113, §2

Referred to in §422.9, 422.16

Section applies retroactively to January 1, 2014, for tax years beginning on or after that date;

2014 Acts, ch 1113, §3

2016 amendment to subsection 2 takes effect January 1, 2017, and applies to tax years beginning on or after that date; 2016 Acts, ch 1128, §17, 26