Referred to the House Committee on Ways and Means.
This bill amends section 23 of the Internal Revenue Code to make the portion of the adoption tax credit attributable to special needs children refundable. It treats qualifying special-needs adoption expenses as a refundable credit and adjusts the carryforward rules accordingly.
Liberals emphasize equity and removing barriers to adoption
Relative to its intended legislative type, this bill cleanly and narrowly accomplishes its stated objective by directly amending section 23 of the Internal Revenue Code to make the portion of the adoption credit attributable to special needs adoption expenses refundable, with a clear effective date and a coordination change for carryforwards.
This bill amends section 23 of the Internal Revenue Code to make the portion of the adoption tax credit attributable to special needs children refundable.
It treats qualifying special-needs adoption expenses as a refundable credit and adjusts the carryforward rules accordingly.
The amendments apply to taxable years beginning after enactment or December 31, 2025, whichever is later.
Legislatively modest and broadly sympathetic, but fiscal impact and absence of offsets lower standalone passage chances; more likely as part of larger package.
Relative to its intended legislative type, this bill cleanly and narrowly accomplishes its stated objective by directly amending section 23 of the Internal Revenue Code to make the portion of the adoption credit attributable to special needs adoption expenses refundable, with a clear effective date and a coordination change for carryforwards.
Liberals emphasize equity and removing barriers to adoption
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals emphasize equity and removing barriers to adoption
Likely favorable: makes financial assistance for special-needs adoptions more accessible to low-income families.
Views refundability as a concrete step to reduce barriers to adopting children with special needs.
Cautiously supportive: appreciates targeted support for special-needs adoptions but wants clarity on fiscal cost and implementation.
Favors modest, well-defined measures with oversight and clear pay-fors.
Skeptical: supports helping families but worries refundability expands spending and sets precedent for refundable tax credits.
Prefers limited government spending and state-level solutions.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Legislatively modest and broadly sympathetic, but fiscal impact and absence of offsets lower standalone passage chances; more likely as part of larger package.
The bill has not accumulated any surfaced votes yet.
Liberals emphasize equity and removing barriers to adoption
Legislatively modest and broadly sympathetic, but fiscal impact and absence of offsets lower standalone passage chances; more likely as par…
Relative to its intended legislative type, this bill cleanly and narrowly accomplishes its stated objective by directly amending section 23 of the Internal Revenue Code to make the portion of the adoption credit attribu…
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