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Rep. Sprunger urges adoptive families to apply for Montana’s new Adoption Tax Credit

Sprunger’s newly minted HB 225 provides families with credits of $5,000 or $7,500


KALISPELL, Mont. (April 8, 2024)—Families who adopted on or after July 1, 2022, are now eligible for a refundable new tax credit with their 2023 income tax return, thanks to House Bill 225 passed in 2023 by the Montana Legislature.

The Montana Adoption Tax Credit, sponsored by Representative Courtenay Sprunger (Kalispell-R), addresses both private adoption and adoption through Montana’s foster care system. For families adopting through private organizations, the one-time refundable credit is $5,000. Simultaneously, to prioritize care of Montana children in foster care, families adopting from the Montana foster care system are eligible for a refundable credit of $7,500.

The tax credit applies to all children adopted under the age of 18 as well as the adoption of any person who is physically or mentally incapable of self-care. For adoptive families, the costs of adoption, whether through private agencies or foster care, are often substantial. The goal of this tax credit is to help offset a portion of that burden and allow adoptive families to focus more of their resources toward helping their children integrate into loving homes.

“Anyone who knows will tell you that adoption is tremendously difficult – both financially and emotionally,’” said Representative Sprunger. “This credit helps close the gap with the goal of making it possible for more Montana families to grow through adoption.”

For taxpayers concerned about the burden shift that this tax credit could create, national estimates place a cost of at least $15,000 to provide for a child in foster care for every year they remain in the system. When a child is adopted, the cost of care for that child is dramatically reduced for all Montana taxpayers. Though the adoption tax credit does not offset the full expense families incur when adopting, the assistance is an important part of making adoption more accessible and reducing the number of Montana children who age out of the system without a support network.

Families wishing to submit for the adoption tax credit should talk with their tax professional or visit for more information.   

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