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Bill

HB 1962

Income tax, state; creates nonfamily adoption tax credit.

2025 Regular Session Introduced by Anne Ferrell Tata

HB 1962 creates an income tax credit for Virginia residents adopting unrelated children, but faces committee resistance with a recommendation to indefinitely postpone consideration.

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Bill Summary · HB 1962

Legislative bill overview

HB 1962 creates a state income tax credit for Virginia taxpayers who adopt children outside of family/kinship situations. The credit would reduce state income tax liability for eligible adoption expenses incurred by non-family adopters. The bill was prefiled for the 2025 legislative session and remains under committee review.

Why is this important

Adoption tax incentives aim to increase adoption rates by reducing the financial burden on adoptive families, potentially addressing Virginia's foster care system needs. However, the bill's current status—with a subcommittee recommending it be "laid on the table" (indefinitely postponed)—suggests limited legislative momentum or unresolved concerns. The tax impact statement from the Department of Taxation indicates fiscal implications that may be influencing the committee's hesitation.

Potential points of contention

  • Fiscal cost: The state must project revenue loss from the tax credit, which could burden the general fund during budget constraints
  • Definition of "nonfamily" adoption: Distinguishing eligible adoptions (unrelated minors) from kinship care may create disputes over what qualifies
  • Equity concerns: Questions about whether tax credits primarily benefit higher-income families with tax liability, potentially creating disparities in adoption support access

Compiled from official sources — confirm details with the bill’s official record.

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