Taxpayers who adopt a child in foster care or an eligible youth may claim a $5,000 deduction, subject to income limits and recordkeeping requirements.
§297.20. Tax deduction; adoption from foster care A.(1) There shall be allowed a deduction from tax table income for a taxpayer who adopts a child who is in foster care, as defined in Children's Code Article 603, or a youth receiving extended foster care services pursuant to the Extended Foster Care Program Act. The amount of the deduction authorized by this Section shall be equal to five thousand dollars and shall be applicable in the year the adoption becomes final. The amount of the deduction authorized by this Section shall not exceed the total taxable income of the taxpayer claiming the deduction. (2) Repealed by Acts 2024, 3rd Ex. Sess., No. 11, §4, eff. Dec. 4, 2024. B. The taxpayer claiming the deduction authorized pursuant to the provisions of this Section shall maintain all records necessary to verify the adoption and, if requested, shall provide the records to the Department of Revenue when filing the taxpayer's tax return. C.(1) The secretary of the Department of Revenue may promulgate rules in accordance with the Administrative Procedure Act to implement the provisions of this Section, including rules related to the submission of documentation when claiming the deduction. (2) If the rules promulgated pursuant to this Subsection require the submission of a deduction eligibility certification letter and the secretary of the Department of Revenue determines that the process of obtaining that letter is an impediment to, or causes an undue burden for, claiming of the deduction provided for in this Section, then the secretary may amend such rules to provide for an alternative process for certification of eligibility for the deduction. The process may include certification on a standardized form promulgated by the secretary in rule. Acts 2021, No. 378, §1, eff. Jan. 1, 2022; Acts 2024, 3rd Ex. Sess., No. 11, §4, eff. Dec. 4, 2024; Acts 2025, No. 349, §1, eff. June 20, 2025.