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Bill to increase tax credit for adoption costs advances in Iowa House

Adoptive parents could receive a tax credit of up to $20,000 under a proposal advanced by an Iowa House committee Wednesday. The current credit goes up to $5,000.

The tax credit would apply to costs related to the adoption, such as welfare agency and legal fees, as well as birth-related medical bills of the child’s biological mother.

If passed, the bill would retroactively apply to adoptions dating back to January 2024.