The Family, Children and Human Affairs Committee in the Indiana House has voted in favor of Governor Mike Pence's proposal to offer a tax credit that would offset adoption costs.
Supporters of the credit say it could help prospective parents overcome the cost of adoption which can reach $30,000.
Pence wants Indiana to become the most pro adoption state in America.
About 75-100 Indiana children who are wards of the state are eligible for adoption, as well as many other children in private agencies are looking for homes.
The federal government already offers a tax credit for adoptive parents.
The bill will now likely go to the House Ways and Means Committee, which will review its fiscal impact.