Indiana DOR Updates Adoption Credit Rules, Limits to State Residents

The Indiana Department of Revenue (DOR) issued an updated income tax information bulletin, replacing its February 2026 guidance to reflect legislative changes enacted in Senate Enrolled Acts 212 and 243. Effective retroactively to Jan. 1, 2022, the Indiana adoption credit is limited primarily to Indiana residents in the year the federal adoption credit is claimed. The credit equals the lesser of 20 percent of the federal adoption credit or $2,500 per eligible child, with a lifetime maximum of $2,500 per child, and is refundable to the extent it exceeds the taxpayer’s Indiana adjusted gross income tax liability. The updated bulletin ...