Foster Care Donation Tax Credit
During the 2021 legislative session the Indiana General Assembly adopted the Foster Care Donation Tax Credit. As a result, Indiana taxpayers may be able to claim a credit on their 2022 tax return (filed in 2023) for approved donations made during the 2022 tax year.
There will be $2,000,000 available per fiscal year starting in July 2021 for the purpose of donation to an approved Foster Care Organization. The renewal of the $2,000,000 will happen every year until June 30, 2025.
Foster Care Organizations are approved by the Department of Child Services through an application process. The approved organizations are below and will be updated yearly.
| Legal Name of Organization | Full address |
|---|---|
| Childplace, Inc | 2420 E. 10th Street, Jeffersonville, IN 47130 |
| Specialized Alternatives for Families and Youth of Indiana, Inc. | 70 E. 91st Street Suit 109, Indianapolis, IN 46240 |
| The Villages of Indiana | 3833 N. Meridian Street, Indianapolis, IN 46208 |
| Indiana Connected by 25 dba Foster Success | 546 E. 17th Street, Suite 206, Indianapolis, IN 46202 |
| Heartford House Child Advocacy Center | 703 N. 36th Street, Lafayette, IN 47905 |
| Firefly Children and Family Alliance (Formely Children's Bureau) | 1575 Dr Martin Luther King Jr. Street, Indianapolis IN 46202 |
| Youth Services Bureau St. Joseph County | 2222 Lincolnway West, South Bend IN 46628 |
| Bethany Christian Services of Central Indiana | 7168 Graham Rd, Indpls, IN 46250 |
The maximum amount of credit that can be granted is 50% of the donation up to $10,000; this is for all donations to one or multiple approved foster care organizations during any one fiscal year.
Interested in Applying for the Foster Care Donation Tax Credit?
An application is required to be completed and submitted to the Indiana Department of Revenue (DOR) by donors to be considered for the credit.
Foster Care Donation Application
After you receive a letter of approval for your application from DOR, proof of donation must be provided to DOR within 30 days of approval. Upon receipt of proof of donation, DOR will send a subsequent letter with a code to be used when filing your 2022 income tax. If DOR does not receive proof of payment within 30 days, these funds may no longer be available for credit on your 2022 taxes.
The granting of approval of the donation is on a first in first out basis and when the funds are no longer available, you will be notified that your application has been denied.