Pennsylvania Senator Bob Casey Proposes Adoption Tax Credit Refundability Act

Last September, Senator Robert P. Casey, Jr. (PA) and Kevin Cramer (ND) introduced the Adoption Tax Credit Refundability Act (the “Act”) to the United States Senate, and Representative Danny K. Davis (IL) introduced the Act to the United States House of Representatives.

In this issue of KingSpry’s heARTbeat blog, Adoption and ART Practice Chair, Dorota Gasienica-Kozak, Esq., reviews the proposed bill (S. 2895/H.R. 3662) and highlights its significance for the future of adoption and foster care.

A Need for Reform

In their memorandum, Senator Casey and Kevin Cramer (ND) emphasize that one-third (1/3) of all adopted children live in families with an annual household income at or below 200% of the poverty level. Further, approximately 46% of families adopting from foster care are at or below 200% of the federal poverty level.

The Senators also contend that because many of these families’ tax burdens are so low, they cannot actually benefit from the current Adoption Tax Credit unless it is refundable.

As such, the Act was proposed to make the Adoption Tax Credit refundable. This reform would make thousands of adopting families eligible for the full credit and assist more families with affording the costs associated with adoption.

“The more children who are adopted by loving families, the better off our Nation is…this bill will allow more families to experience the joy of expanding their family through adoption,” said Senator Casey.

Amending the Internal Revenue Code

If enacted, the Act will amend the Internal Revenue Code of 1986 to provide for a refundable adoption tax credit.

“This tax credit is an important benefit to encourage prospective families to adopt…shifting it from nonrefundable to refundable will allow families who experience the joy of adoption to take full advantage of the credit, regardless of their tax burden,” said Senator Cramer.

Support

The proposed legislation has received bipartisan support from several U.S. Senators. Individuals interested in supporting the Act are encouraged to contact their state and local representatives.

If you have questions regarding ART, KingSpry’s ART Law Group Chair, Ms. Dorota Gasienica-Kozak, Esq., is prepared to assist you. Ms. 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.