Establishes the "Zero-Cost Adoption Fund Act" which establishes a fund to offset costs associated with adoption and a tax credit for any person who contributes to the fund
Summary
HB1012 establishes the “Zero-Cost Adoption Fund Act” and creates a new state tax credit mechanism to encourage private contributions to a dedicated adoption fund. Beginning with tax years starting on or after January 1, 2026, a qualified taxpayer who makes a cash contribution to the fund may claim a credit equal to 100% of the contribution, subject to a cap of 50% of the taxpayer’s state income tax liability for that year. Credits are not refundable, transferable, or assignable, but unused credits may be carried forward for up to four subsequent tax years.
The bill also creates the Zero-Cost Adoption Fund in the state treasury and directs the Department of Social Services to administer it. Fund money must be used first to help Missouri residents pay nonrecurring adoption expenses, then for post-adoption assistance such as reimbursement of costs, counseling, and other needed care, followed by adoption promotion and recruitment of adoptive families, and finally community-based interventions intended to prevent children from entering foster care. Priority is given to adoptions involving children in foster care, though the fund may support both public and private adoptions.
Impact
The bill would amend Missouri law by adding new sections to chapters 135 and 453, creating both a tax credit under the state income tax code and a dedicated treasury fund for adoption-related spending. It would require the state treasurer and Department of Revenue to administer the credit, issue receipts and rules, and manage annual credit allocation limits, while the Department of Social Services would administer the fund and distribute money for adoption assistance and related services. The measure also includes sunset provisions, causing the program to expire automatically after six years unless reauthorized, with a possible twelve-year sunset if renewed.
Sentiment
Based on the bill’s structure and caption, the measure appears generally supportive of adoption and family formation, with a policy goal of reducing financial barriers to adoption. No committee transcript or recorded votes were provided, so there is no direct evidence of floor or committee sentiment in the available materials. The bill’s design suggests an effort to attract bipartisan support by pairing tax incentives with child welfare and foster-care prevention goals.
Contention
The main potential points of contention are fiscal and administrative. The bill creates a tax credit that can reduce state revenue, with an initial statewide cap of $25 million that can grow with inflation up to $75 million annually, which may raise concerns about budget impact and the use of tax expenditures. There may also be debate over whether the credit primarily benefits taxpayers able to make sizable contributions, how first-come, first-served allocation would work, and whether public funds should support both private and public adoptions. Another possible issue is the breadth of the fund’s purposes, which extends beyond direct adoption expenses to post-adoption services, recruitment, and foster-care prevention.