Bill · H.R. 2438· House(119-HR-2438)
Foster Care Tax Credit Act
- Introduced
- 3/27/2025
- Last activity
- 3/27/2025 — Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Erin Houchin
- Cosponsors
- - 1 - 3
- Introduced
- In Committee
What this bill would do
The Foster Care Tax Credit Act aims to amend the Internal Revenue Code of 1986 to establish a refundable tax credit for foster families. This credit provides $850 to eligible taxpayers who have placed a qualifying foster child in their home for at least one month. The bill includes specific income thresholds and rules for determining eligibility based on the child's age and citizenship status. It also establishes new information reporting requirements for placement agencies and courts. Additionally, the legislation directs the Secretary of Health and Human Services to conduct a study on the financial burdens of emergency and short-term placements.
Yes· 3 of 6
Would children be better off under this?+5
The bill aims to provide financial support for the care and placement of children in foster homes.
Would households on low incomes be better off under this?+5
The refundable credit provides a direct financial benefit that can assist low-income foster parents.
Would middle-income households be better off under this?+5
The bill establishes a tax credit that benefits middle-income earners who take on foster care responsibilities.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Financial relief for foster families: Eligible taxpayers can receive a credit of $850 for a qualifying foster child placed in their home for at least one month (Section 2(a)(1)).
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Support for various household types: The bill provides specific income thresholds for joint returns, single individuals, and married individuals filing separately to determine credit amounts (Section 2(a)(2)).
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Increased outreach and awareness: The Secretary of Health and Human Services is tasked with identifying tax provisions that benefit foster families and increasing educational outreach to agencies and families (Section 2(f)(1)).
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Insight into placement challenges: A mandated study will examine the costs and financial burdens faced by families dealing with multiple emergency and short-term placements (Section 3(a)(1)).
Potential Negative Impacts for People
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Income limitations on the credit: The amount of the credit is reduced for taxpayers whose modified adjusted gross income exceeds certain thresholds (Section 2(a)(2)(1)).
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Penalties for improper claims: Taxpayers who make fraudulent or reckless claims may be barred from receiving the credit for a period of up to 10 years (Section 2(a)(4)(1)).
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Reporting burdens for agencies: Authorized placement agencies and courts are required to file returns containing specific information about the name, address, and TIN of the individuals receiving the child (Section 2(b)(1)).
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Requirement for written statements: Placement agencies must furnish written statements to foster parents regarding the information reported to the Secretary (Section 2(b)(3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Children+5Good For Low Income Households+5Good For Middle Class Households+5
- Social Issues And Justice
- Improves Childcare Affordability+5Improves Poverty Reduction+3
- Economy And Finance
- Reduces Middle Class Taxes+5
- 4/16/2026
- 1 Cosponsor added.
- 12/10/2025
- 1 Cosponsor added.
- 11/19/2025
- 1 Cosponsor added.
- 3/27/2025
- Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 1 Cosponsor added.
- Introduced in House
Don BaconRepublican · Nebraska
André CarsonDemocrat · Indiana
Julie JohnsonDemocrat · Texas
Brittany PettersenDemocrat · Colorado