Tax Credit Pre-adoption Leave

Beginning January 1, 2024, an employer is allowed an income tax credit in an amount equal to 50% of the employer's expenses incurred from voluntarily paying:

• An employee during a period of leave for the purpose of adopting a child; and
• For temporary replacement help, if any, during an employee's pre-adoption.

The maximum amount of pre-adoption leave for which an employer can claim the credit is 12 weeks per employee. To be eligible for the credit, an employer must have a written policy offering pre-adoption leave. The credit is limited to pre-adoption leave for employees who have been employed for at least one year and who for the preceding year earned less than $80,000. The credit does not include the cost of any compensation in addition to wages that an employer pays or provides to an employee.

(Note: This summary applies to this bill as introduced.)