An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and establishing the child adoption tax credit.

HB 2195 establishes a $1,000 tax credit for Pennsylvania resident individuals who adopt a child under 18 years old in the year the adoption is finalized. The credit applies only once per adopted child and may be claimed jointly by filing spouses, but not for children who are the spouse's biological child. To claim the credit, taxpayers must submit proof with their tax return, and the Department of Revenue must annually report usage statistics (including total claims and amounts) to the General Assembly starting in 2027. The credit applies to tax years beginning after December 31, 2025.