Washington, DC – In a new paper released today, the Charlotte Lozier Institute (CLI) detailed the history and progress of the Adoption Tax Credit in the United States and called on the federal and state governments to create or expand existing credits to promote a culture of adoption. In addition to improving lives by providing a permanent and stable home for a child in a distressed situation, adoption also has a fiscal element. The Adoption Tax Credits help avert the public expense due to the social costs associated with raising children under less than ideal conditions.
“Over the years and across many states, the Adoption Tax Credit has proved to be an effective, simple way to encourage adoption,” said Chuck Donovan, president of the Charlotte Lozier Institute. “Adoption provides a stable home for children in need and also relieves taxpayers of the burden of costs associated when parenting roles fall to the state. The many states that do not currently provide for an adoption tax credit or deduction could reduce public expenditures substantially by doing more to encourage adoption. This is a commonsense solution that would ease the difficulty of good-hearted parents seeking to expand their families through adoption.”
Of the 42 states which have income tax, plus the District of Columbia, 17 provide some form of credit against taxes or deduction from income to encourage adoption. The other 26 provide no adoption-specific relief at all in order to reduce state income tax liability.
The paper, a part of the Lozier Institute’s American Reports Series, is available in its entirety below: