For Immediate Release
Date: June 15, 2007
Contact: Maura Browning
Phone: (573) 751-8222
Revenue Department Completes Adoption Tax Credit Allocation
Taxpayers claim $2.9 million in credit
JEFFERSON CITY – The Missouri Department of Revenue announced today that 1,273 claims were made for the Adoption Tax Credit in Fiscal Year 07. In comparison, the department received 1,976 total adoption credit claims in FY 06.
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).
A total of $420,571 in credit was claimed for resident adoptions, and $2,504,861 was claimed relating to non-resident adoptions.
The number of tax credit claims for non-resident children vastly outnumbered claims for Missouri children. In FY 2007, more than 88 percent of the total claims – 1,123 – were submitted by individuals claiming a tax credit for non-resident children while 150 claims were submitted for Missouri children.
In each year since 2004, the individuals claiming tax credits for non-resident children have exceeded the $2 million cap and received only a portion of the credit claimed. However, following a change made in 2006 by the Missouri Legislature, unused amounts from the $2 million resident pool may now be transferred to the non-resident pool. The unused amounts are first allocated to the Children in Crisis (CIC) credit, then transferred to cover non-resident adoptions. (The CIC credit received 172 claims for $168,129.) Individuals claiming the Adoption Tax Credit will receive 100% of their Adoption Tax Credit Claim in FY 07.
For more information about the Special Needs Adoption Tax Credit, please visit the department’s website at http://www.dor.mo.gov/tax/taxcredit/atc.htm or call (573) 751-7791.
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