Bill > HR2833

This bill amends the Internal Revenue Code to make the adoption tax credit refundable, which means that adoptive parents can receive the full tax credit even if it exceeds their tax liability. Specifically, the bill moves the existing adoption tax credit (currently under Section 23) to a new location as Section 36C and changes its status to a refundable credit. The bill also includes technical amendments to update references to the adoption tax credit across various sections of the tax code. Additionally, the bill requires the development of a standardized third-party affidavit to help verify legal adoptions, including those involving children with special needs. The changes will take effect for taxable years beginning after December 31, 2025, and includes a transitional rule that allows any unused adoption tax credit from the previous year to be carried forward as a refundable credit. This modification aims to provide more financial support to families who choose to adopt, making the adoption process potentially more accessible by ensuring families can receive the full tax benefit regardless of their tax liability.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2833/all-info