For Immediate Release
Date: July 8, 2005
Contact: Maura Browning
Phone: (573) 751-8222

Department completes Adoption Tax Credit allocation; Taxpayers claim $2.5 million in credit

        JEFFERSON CITY – The Missouri Department of Revenue announced today that 1,751 Missouri taxpayers claimed the Adoption Tax Credit in Fiscal Year 2005, a 3 percent decrease in number of claims in comparison to last year.

        The Special Needs Adoption Tax Credit provides a maximum $10,000 credit to assist in the nonrecurring expenses for a special needs child. In 2004, the Missouri Legislature allocated $2 million for the adoption of Missouri children and another $2 million for the adoption of children outside the state of Missouri (“non-resident” children).

        Tax credit claims for non-resident children vastly outnumbered claims for Missouri children. In FY 2005, 1,609 claims were submitted for the adoption of non-resident children. Since the claim amount was higher than the allocated $2 million, each claimant received about 36% of the initial tax credit claim. A total of 142 people claimed the resident child tax credit for FY 2005, and received a total of $551,975 in credit.

        Missouri taxpayers who received a portion of the non-resident adoption credit for which they are eligible may apply for up to 5 years from the time the credit is claimed or when the adoption is finalized, whichever is first.

        For more information about the Special Needs Adoption Tax Credit, please visit the department’s website at http://dor.mo.gov/tax/taxcredit/atc.htm or call (573) 751-7791.