Bill > S1458

This bill proposes to make the existing 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 adoption tax credit from Section 23 to a new Section 36C in the Internal Revenue Code and changes its status so that it becomes a refundable credit. The bill also includes provisions to update various references to the adoption tax credit across different sections of the tax code. Additionally, the bill requires the creation of a standardized third-party affidavit to help verify legal adoptions, including those of children with special needs. The changes would apply to tax years beginning after December 31, 2024, and includes a transitional rule that allows any unused adoption tax credit from the previous year to be added to the new refundable credit. This modification aims to provide more financial support to families who adopt children, particularly those adopting children with special needs, by ensuring they can receive the full tax credit benefit regardless of their tax liability.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1458/all-info