I 
119TH CONGRESS 
1ST SESSION H. R. 2438 
To amend the Internal Revenue Code of 1986 to create a refundable tax 
credit for foster families, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 27, 2025 
Mrs. HOUCHIN (for herself and Ms. JOHNSON of Texas) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Education and Workforce, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to create 
a refundable tax credit for foster families, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Foster Care Tax Cred-
it Act’’. 
SEC. 2. FOSTER CARE TAX CREDIT. 
(a) ALLOWANCE OF CREDIT.— 
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(1) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code 
of 1986 is amended by inserting after section 36B 
the following new section: 
‘‘SEC. 36C. FOSTER CARE TAX CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible taxpayer, there shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an 
amount equal to $850. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowable under subsection (a) (determined without 
regard to this subsection) shall be reduced (but not 
below zero) by the amount which bears the same 
ratio to such credit (as so determined) as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) the threshold amount, bears to 
‘‘(B) $17,000. 
‘‘(2) THRESHOLD AMOUNT.—For purposes of 
paragraph (1), the term ‘threshold amount’ means— 
‘‘(A) $250,000, in the case of a joint re-
turn, 
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‘‘(B) $150,000, in the case of an individual 
who is not married, and 
‘‘(C) $125,000, in the case of a married 
individual filing a separate return. 
For purposes of this paragraph, marital status shall 
be determined under section 7703. 
‘‘(3) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this subsection, the term ‘modified 
adjusted gross income’ means the adjusted gross in-
come of the taxpayer for the taxable year increased 
by any amount excluded from gross income under 
section 911, 931, or 933. 
‘‘(c) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘eligible taxpayer’ 
means, with respect to any taxable year, any tax-
payer— 
‘‘(A) with whom a qualifying foster child 
was placed for a period of not less than 1 
month during such taxable year, and 
‘‘(B) for whom a credit under section 24 
with respect to such eligible foster child is not 
allowed for such taxable year. 
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‘‘(2) QUALIFYING
FOSTER
CHILD.—The term 
‘qualifying foster child’ means an eligible foster child 
(within the meaning of section 152(f)(1)(C))— 
‘‘(A) who has not attained age 17, and 
‘‘(B) who is a citizen, national, or resident 
of the United States. 
‘‘(3) CALENDAR MONTH.—For purposes of this 
paragraph (1)(A), if a foster child resides in the 
home of the taxpayer for more than 15 consecutive 
days of a calendar month but fewer than the total 
number of days in such calendar month, such foster 
child shall be treated as residing in the home of the 
taxpayer for the full calendar month. 
‘‘(d) RESTRICTIONS ON TAXPAYERS WHO IMPROP-
ERLY CLAIMED CREDIT IN PRIOR YEAR.— 
‘‘(1) TAXPAYERS MAKING PRIOR FRAUDULENT 
OR RECKLESS CLAIMS.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section for any taxable year in 
the disallowance period. 
‘‘(B) DISALLOWANCE
PERIOD.—For pur-
poses of subparagraph (A), the disallowance pe-
riod is— 
‘‘(i) the period of 10 taxable years 
after the most recent taxable year for 
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