The Foster Care Tax Credit Act introduces a new refundable tax credit of $850 for eligible taxpayers who provide foster care. To qualify, a taxpayer must have a qualifying foster child placed in their home for at least one month during the taxable year. This credit aims to provide financial support to individuals and families caring for foster children. An eligible foster child must be under 17 years old and a U.S. citizen, national, or resident. The credit amount is subject to a phase-out based on modified adjusted gross income, beginning at $250,000 for joint filers, $150,000 for individuals, and $125,000 for married individuals filing separately. Taxpayers cannot claim both this foster care credit and the Child Tax Credit for the same qualifying child. The bill also establishes new information reporting requirements , mandating that authorized placement agencies and courts provide the IRS and foster parents with details about foster child placements. Furthermore, it directs the Secretary of Health and Human Services, in coordination with the Treasury, to increase outreach and education to foster families regarding relevant tax provisions. Finally, the Act requires the Secretary of Health and Human Services to conduct a study and submit a report to Congress within one year. This study will examine the costs and financial burdens experienced by foster families due to multiple emergency and short-term placements, as well as challenges in verifying such placements.