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Center for Advanced Studies in Child Welfare

Center for Advanced Studies in Child Welfare

House and Senate bills propose renewal of Adoption Tax Credit

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One of the ways adoptive families are supported are through the adoption tax credit. The adoption tax credit, first enacted in 1997 as a means to help offset the costs incurred to adopt children from foster care, the tax credit has since become available for all types of adoptions. However, the tax credit is soon about to expire.

So far the tax credit has never been successfully legislated to be permanent. The tax credit has been extended several times and along with the extensions or renewals, has included changes over the years.

House Bill H.R. 4373, which has bipartisan support, aims to renew the adoption tax credit, and even more significantly make the tax credit permanent, a flat rate for special needs adoption and inclusive for all types of adoption; however with the upcoming elections it is unlikely that Congress will review it until after the elections. The Senate version is S. 3616 and like the House bill, has bipartisan support. If the propsed bills do not pass, then the credit will be reduced to $6,000 for a limited number of special needs adoptions.

For more information about the Adoption Tax credit, see the following resources:

North American Council on Adoptable Children (NACAC)
Save the Adoption Tax Credit (NACAC)
IRS Adoption Benefits FAQ
Congressional Coalition on Adoption Institute

1 Comment

To renew the Adoption Tax Credit in it's current form actually will HURT the very children it's pretends to help. It will PREVENT children from foster care being adopted. While the original adoption tax credit was created to benefit the adoptions of special needs children, successful lobbying from adoptive parents and the adoption lobbyists have increased the credit by both the amount refunded and the range of adoptions covered. The Adoption Tax Credit now applies to domestic and international adoptions. Letting people use the credit to adopt in an otherwise competitive market does not help children in foster care. it helps the adoption industry. Historically, as the adoption tax credit went up, so do the adoption fees. In other words, the US government subsidizes the adoption industry this way through the Adoption Tax Credit." ~Claudia Corrigan D'Arcy"

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