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Reprinted
with permission of the St. Louis Post-Dispatch, (C)
2004
JEFFERSON CITY - Just a fraction of the extra $2
million set aside this year to promote the adoption of
Missouri children has been claimed, prompting some to
question whether the tax credits should be
restructured.
Lawmakers this year doubled from $2 million to $4
million the amount of tax credits to families who
adopt children with special needs.
Half is earmarked for parents who adopt children from
overseas. The other half goes toward adoptions within
the state, as part of an effort to encourage families
to open their homes to foster children.
But the Missouri Department of Revenue says just
$244,792 of the $2 million for such adoptions has been
claimed so far this fiscal year. Some adoption experts
say participation is low because the tax credits don't
cover the kinds of expenses that parents typically
face when they adopt foster children.
Parents who adopt children overseas, meanwhile,
continue to line up for the tax credits. Since July 1,
nearly 1,000 such parents have applied - so many, in
fact, that none of those applicants will receive their
entire tax credit.
Offering a tax credit that pleases parents of both
Missouri and international children has been a puzzle
for lawmakers.
In the past, both groups of parents have complained
that the tax credits are gobbled up within days of
becoming available. The credits cover up to $10,000 in
adoption expenses and are regarded as the most
generous in the nation. But last year, hundreds of
eligible taxpayers were turned away when the money ran
out.
Lawmakers spent the extra $2 million this year to
avoid that problem but admit now that the tax credit
still needs revising.
"It isn't a 100 percent solution," said House Speaker
Catherine Hanaway, who drafted the tax credit
revisions this year.
Hanaway, R-Warson Woods, said the tax credit as it's
structured may not be that appealing to parents who
adopt foster children. That's because the tax credits
only cover one-time expenses, such as legal fees and
transportation. Those expenses are already reimbursed
by the state in most circumstances.
Melanie Scheetz, who heads the Foster and Adoptive
Care Coalition of Missouri, has long called for the
credits to cover a broader range of expenses, such as
home renovations or purchase of a larger car. Beyond
that, she said, she'd like the credits to cover
continuing expenses, like clothing and education.
Scheetz said research by her office suggests that
families who adopt foster children need the financial
support. Most of those families, she said, earn less
than $35,000 a year.
Parents who adopt internationally, meanwhile,
appreciate the tax credit, even though high demand has
made them unable to fully benefit. Legal and travel
fees for such adoptions often exceed $20,000.
"I doubt you'll find many complaints among parents who
adopt internationally," said Cory Barron, a spokesman
for the adoption agency Children's Hope International.
Barron said the tax credit as it is structured this
year is an improvement, since it guarantees that all
eligible taxpayers will get at least a portion of the
credit.
So far this year, parents who adopted internationally
have requested $2.6 million in tax relief. Under the
new law, they will be limited to $2 million
collectively. Even so, it appears parents will receive
at least two-thirds of their tax credits.
In the meantime, most of the $2 million set aside for
Missouri adoptions will likely remain unspent. And
that has people like Scheetz worried that the funds
could be cut from the budget next year.
Hanaway, who is leaving the Legislature to run for
secretary of state, said she'd like lawmakers to
redirect the unspent tax credits in a way that
supports families who adopt foster children.
"I would like to see (the money) stay in the realm of
foster and adoptive care," she said.
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