The Indiana Foster Care Tax Credit

Your donations directly benefit the children and families we serve while offering you a huge benefit

What is it?

The Indiana Foster Care Donation Tax Credit is a $2 million annual allocation of funding that allows for a 50% tax credit for contributions of up to $10,000 made to qualifying foster care organizations. Each fiscal year through June 2027 there will be $2,000,000 available for the purpose of donating to an approved Foster Care Organization. The donations provide direct support to families and individuals in the foster care system.

These credits are available on a first-come first-serve basis. This is not a federal tax credit, and must be approved by the Indiana Department of Revenue through the process outlined below.

  1. Pay Indiana taxes
  2. Donate to an eligible organization
  3. Claim their credit in the same taxable year that the donation was made.

The Process

  1. Make your donation to Firefly. Cash donations, gifts of stock, and Qualified Charitable Distributions (QCD) qualify for the Foster Care Tax Credits. Certain gifts through a donor-advised fund may also qualify. Contact us for details.
  2. Firefly will provide proof of donation. We will send a hard copy of the proof of donation as well as an email form within 24-48 hours of receiving your donation.
  3. Submit your application & proof of donation to the Indiana Department of Revenue. These must be submitted via fax or by mail.
  4. Receive an approval letter from the Indiana Department of Revenue. A response indicating approval or denial will be provided within 45 days of receipt.

Longtime Firefly donor Dave Maas explains how the tax credit works and its benefits.