The Ohio Department of Taxation
Ohioans who adopt a child are now eligible for a one-time financial grant to help defray costs associated with the adoption process.
The Ohio Department of Job and Family Services (ODJFS), which administers this new program, began taking applications earlier this month. More than 180 applications have been submitted.
There are three types of grants available for adoptions finalized on or after Jan. 1, 2023:
$10,000 for a conventional adoption
$15,000 if the adoptive parent was a foster caregiver for the child prior to adoption
$20,000 if the adopted child has a diagnosed special need
This new grant program replaces the Ohio individual income tax credit that was previously available to adoptive parents. The credit was repealed at the end of calendar year 2022, but carryforwards of the credit for legal adoptions occurring prior to January 1, 2023, are still permitted.
The adoptive parent can take an Ohio individual income tax deduction equal to the amount of the grant, to the extent that the grant was included in adjusted gross income.