Foster Care Tax Credit Coalition

Run and supported by

Supporting Our Foster Families, Strengthening Our Future

The Foster Care Tax Credit Coalition comprises dedicated organizations including Upbring, Child Welfare League of America, National Foster Parent Association and many more, all united in advocating for the wellbeing of children in foster care and their caregivers.

We are thrilled to announce the introduction of the Foster Care Tax Credit Act of 2024 (FCTC) in the House of Representatives. This vital legislation, sponsored by Representatives Danny Davis (D-IL) and Erin Houchin (R-IN), addresses a critical gap in support for short-term foster parents by establishing a one-time-per-year $850 refundable tax credit. This initiative aims to promote the recruitment and retention of foster parents, ensuring that every child receives the care they need.

Why the Foster Care Tax Credit Act Matters

Short-term foster parents play a crucial role in providing immediate and essential care to children in need. Despite their significant contributions, they are currently ineligible for federal tax benefits available to long-term foster parents. The Foster Care Tax Credit Act of 2024 seeks to rectify this disparity by offering financial relief to short-term foster parents, defined as those providing care for 15 consecutive days within one month, for up to six months. This legislation is a step towards recognizing and supporting the vital work of short-term foster parents.

The Current Landscape

  • Nationwide Shortage: There is an urgent need for more foster parents. In FY 2022, over 565,000 youth spent time in the foster care system, but there were only 187,000 licensed foster homes in 2023.
  • Financial Strain: Foster parents often use personal resources to provide for children, covering costs for clothing, school supplies, and hygiene products. State maintenance payments are frequently insufficient, with 75% of foster parents reporting they “sometimes,” “rarely,” or “never” cover the full costs.

How the Credit Can Help

The Foster Care Tax Credit will:

  • Provide an $850 refundable tax credit to short-term foster parents for each year they have a child placed in their home by a child placing agency or court.
  • Help foster parents better meet the needs of children in their care.
  • Encourage more families to become foster parents, helping to address the nationwide shortage and improve outcomes for children.

Our Commitment

Upbring has a rich history of serving those in foster care since 1881. Our mission is to advance child wellbeing and empower children to be more resilient and live a life of opportunity. By advocating for the Foster Care Tax Credit Act of 2024, we aim to further our efforts in transforming lives and cultivating societal change where children always come first.

Join Us in Supporting the Foster Care Tax Credit Act

We invite you to join us in supporting this crucial legislation. Together with our partners in the Foster Care Tax Credit Coalition and our federal champions, we are committed to making a lasting impact on the lives of children in foster care and the families who care for them.

Icon
National Foster Parent Association

NFPA is dedicated to providing support to Foster, Adoptive and Kinship parents who are working hard to provide caring, healing homes to children in care. 

Learn more about NFPA.

National Foster Parent Association
National Foster Parent Association
Icon
Child Welfare League of America

CWLA is a powerful coalition of hundreds of private and public agencies that since 1920 has worked to serve children and families who are vulnerable. Our expertise, leadership and innovation on policies, programs, and practices help improve the lives of millions of children across the country. Our impact is felt worldwide.

Learn more about the CWLA.

Child Welfare League of America
Child Welfare League of America