Capitol Letters: Child care and adoption tax credit successes

House File 2655 provides that childcare centers and facilities will be given the residential rollback (instead of commercial) for property tax purposes. The bill passed out of the House Ways and Means Committee as well as off the House floor.

Current law provides that a childcare center or childcare facility are commercial properties and as such are assigned a 90% rollback. This means they pay property tax on 90% of their assessed value — putting these childcare centers at a disadvantage with their in-home counterparts who are assessed at the much lower residential value.

House File 2655 provides that for assessments years beginning Jan. 1, 2024 and after — property that is primarily used as a child care center or facility, although a commercial property — will be given the same rollback as residential property (this year 46%). This will result in a significant property tax cut for these businesses.

A childcare center who wishes to qualify for this rollback must file an application with the assessor by July 1 of the assessment year for which the person is first requesting the limitation The license to operate as a childcare center or facility must be included with the application. The person will not have to apply in subsequent years so long as the property is still used for this purpose.

Quality childcare is crucial to the success of Iowa’s workforce. We will continue to look for ways to help childcare be more available and affordable.

House File 2637 increases the adoption tax credit from $5,000 to $20,000. The bill passed out of the House Ways and Means Committee as well as off the House floor unanimously.

Currently, the adoption tax credit equals up to $5,000 of qualified adoption expenses per adoption. This bill increases the tax credit to up to $20,000 of qualified adoption expenses per adoption. Any excess credit is refundable. “Qualified adoption expenses” means unreimbursed expenses paid or incurred in connection with the adoption of a child, including medical and hospital expenses of the biological mother which are incident to the child’s birth, welfare agency fees, legal fees, and all other fees and costs which relate to the adoption of a child.

Affordability of adoptions is a key part of getting children out of the system and into loving and stable homes. Having a strong adoption program in Iowa is another way of supporting all life — born and unborn.