The Utah Department of Workforce Services in partnership with the Utah State Tax Commission began accepting applications for the new Adoption Tax Credit certification. In 2023, the Utah Legislature passed the Adoption Tax Credit, H.B. 130, allowing eligible Utahns to receive a maximum credit of $3,500 in the year they finalized their adoption.
Bill sponsors Rep. Rex P. Shipp and Sen. Wayne A. Harper expressed appreciation for the new tax credit.
“I’m very happy that the legislature passed this legislation,” said Shipp. “There are many wonderful couples that would love to have children but experience infertility. Hopefully this will help many of them to be able to afford adoption.”
Sen. Harper said, “This program exemplifies Utah's continuous commitment to reducing taxes and cultivating a family-friendly environment. By easing the tax burden, we are making adoption more affordable and accessible. I appreciate the work of Workforce Services and the Tax Commission in administering this tax credit to encourage a flourishing and family-oriented state that will continue to prosper for generations to come.”
To obtain the credit, Utahns must first apply for certification through the Department of Workforce Services at jobs.utah.gov/adoptioncredit. Workforce Services will notify applicants if their applications are approved or denied and then share the certifications with the Utah State Tax Commission.
The certification verifies that an adoption was finalized for a child under 18 during the taxable year they are applying for. To qualify, their adjusted gross income must be less than $110,000, if filing jointly or less than $55,000, if filing other than jointly.
An adoption does NOT qualify for this tax credit if:
They or their spouse (if married) received public assistance during the year their adoption was finalized.
The adoption was paid for or reimbursed by an employer or state assistance program.
They adopted the biological child of their spouse.
The adopted child was not a U.S. citizen or resident of the U.S. when they started the adoption process.
They spent money on adoption expenses that were in violation of federal or state laws.
Their adoption was related to a surrogate parenting arrangement.
For more information and to apply for the certification visit jobs.utah.gov/adoptioncredit. Eligible individuals should not apply for the certification until the end of the year their adoption is finalized. They will need a certified finalized adoption decree from the court. Certifications will not be given for adoptions finalized before 2023.