United States Representative Danny K. Davis and Senator Kevin Cramer have introduced H.R.2833 and S.1458 in the House of Representatives and Senate, respectively. The bills intend to create the Adoption Tax Credit Refundability Act and remove income as a barrier to adoption in an effort to help more children find permanent families.
KingSpry’s Adoption and ART Practice Chair and Family Law Attorney, Dorota Gasienica-Kozak, Esq., reviews the proposed bills and highlights how they will positively impact adoptions across the nation, if enacted.
Adoption Tax Credit
The Adoption Tax Credit has received bipartisan support for years, as it allows qualifying families to receive a tax credit if they have adopted or started the adoption proceed in a given tax year. Qualified adoption expenses for the credit are the “reasonable and necessary expenses” an individual pays to adopt a child. These expenses may include, but are not limited to, adoption expenses, attorney fees, court costs, and travel expenses.
In 2010 and 2011, the Adoption Tax Credit was refundable. However, currently, the credit is nonrefundable. Meaning, a recipient of the credit cannot get back (or “be credited”) more money than they owed in taxes for a given year. Representative Davis, Senator Cramer, and other adoption advocates have identified this as a potential setback to adoptions, as refundability provisions are critical in supporting families interested in adoption.
Proposed Legislation
If enacted, H.R.2833 and S.1458 would create the Adoption Tax Credit Refundability Act (the “Act”), which would amend the Internal Revenue Code of 1986 to provide for a refundable adoption tax credit. The Act would allow families to access the full credit amount as a refund, even if the credit exceeds their tax burden for a given year.
Key Takeaways
The bills have received bipartisan support from the nation’s House of Representatives and Senate, as well as adoption advocates. Supporters of the Act generally agree that by making the Adoption Tax Credit refundable, it will not only help adoptive families but ensure that more children find stable, loving homes.
Individuals interested in supporting the proposed legislation are encouraged to contact their state and local representatives for more information.
If you have questions regarding ART, KingSpry’s ART Law Group Chair, Dorota Gasienica-Kozak, Esq., is prepared to assist you. Gasienica-Kozak is a fellow of the Academy of Adoption and Assisted Reproduction Attorneys (AAAA), a member of the American Society of Reproductive Medicine (ASRM), a member of SEEDS, a promoter for RESOLVE: The National Infertility Association, and a committee member of the American Bar Association’s Family and ART Law sections.
heARTbeat is a publication of KingSpry’s Adoption and Assisted Reproductive Technology Law Group. These articles are meant to be informational and do not constitute legal advice.
