Sponsors (4)
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.
Last progress March 27, 2025 (11 months ago)
Introduced on March 27, 2025 by Erin Houchin
Creates a new federal foster care tax credit of $850 per year for households that host a qualifying foster child for at least one month. The credit is nonrefundable, phases out at higher incomes, and cannot be double‑claimed with the child tax credit. It takes effect for placements starting in 2025.
It also requires placement agencies and courts to give caregivers documentation of foster placements, applies existing tax preparer due‑diligence rules and penalties to this credit, and directs HHS and Treasury to expand outreach to foster families and agencies. HHS, in coordination with Treasury, must study the costs and verification challenges of emergency and short‑term placements and report to Congress within one year of enactment.