Senate approves bill creating tax credit for adoption expenses

OKLAHOMA CITY – The full Senate has given approval to a bill creating an income tax credit to help defray some of the costs associated with adoptions.  Sen. Chuck Hall, R-Perry, is the principal Senate author of House Bill 3088.  Rep. Kyle Hilbert, R-Bristow, is principal House author of the measure.

While many services and costs of adoptions through the Department of Human Services (DHS) are covered by the state, private adoptions can cost prospective parents an average of about $41,532 per adoption in the U.S., which includes court-related costs, health and psychological exams, medical expenses and other costs outlined in statute. 

Hall said this issue was a very personal one for him.

“I’m blessed because I had a biological mother who chose life and I was blessed by wonderful adoptive parents who gave me love, support, guidance and opportunities that enabled me have a wonderful life,” Hall said. “Helping encourage more adoptions in Oklahoma is as pro-life as it can be, and I am excited about passing legislation to help and support families who want to open their hearts and homes to children through adoption.”

Currently, Oklahoma has a tax deduction available for parents who opt for a private adoption, which is equal to 4.75 percent of the cost incurred for tax year 2022.  Under HB 3088, that deduction would be replaced with a 10 percent tax credit for adoption expenses of up to $2,000 for an individual or up to $4,000 for joint filers. The change would give much greater financial support for those seeking private adoption and could even be used by those adopting through DHS to cover out-of-pocket expenses.

"We all know adoption is incredibly expensive," Hilbert said. "As a state, we want to do all we can to assist families with this process. We don't want cost to be a barrier for any child in need to enter a forever home where they are loved and cared for. Doubling the amount allowed as a tax credit will help ease this burden." 

HB 3088 now returns to the House for further consideration.

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For more information, contact:

Sen. Chuck Hall, 405-521-5628 or Chuck.Hall@oksenate.gov.

Rep. Kyle Hilbert, 405-557-7353, or Kyle.Hilbert@okhouse.gov.