Georgia Bill Increases Tax Credit for Foster Care Adoptions

May is National Foster Child/Parent Month. In late March, House Bill 114 was passed benefiting families with children adopted who were previously in foster care with DFCS. In the past, Georgia has provided a $2000 tax credit (not a deduction) per child per year until the child turned 18. The new law increases this amount to $6,000 for the first five years following adoption. After five years, the amount will be reduced back down to $2000 per child per year until the child reaches 18.

The effective date is for adoptions finalized after January 1, 2021. Therefore, it will not result in an increase in the Georgia Adoption Tax Credit for families who adopted children from foster care in previous years.