Foster Care Tax Credit Act

Foster Care Tax Credit Act

This bill amends the Internal Revenue Code to allow a partially refundable tax credit for each qualifying foster child who resides in the home of an eligible taxpayer for at least one calendar month during the taxable year.

A "qualifying foster child" is a child in foster care who: (1) has not attained age 17; (2) is a citizen, national, or resident of the United States; and (3) with respect to whom the child tax credit is not allowable.

In order to claim the credit, the name and taxpayer identification number of a foster child must be included on the taxpayer's tax return. No credit is allowed if the identification number of either the taxpayer or the qualifying child was issued after the due date for filing the return for the taxable year.

The bill denies the tax credit to certain taxpayers who have made prior fraudulent or reckless claims for the credit within specified disallowance periods.

The Department of Health and Human Services must identify provisions in the Internal Revenue Code that can benefit foster families and increase outreach efforts to inform state and Indian tribal foster care agencies and foster families about such provisions.