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Refundable Adoption Tax Credit: Support for Adopting Families

This act changes the adoption tax credit rules, making it refundable. This means that families adopting children can receive money back, even if they don't owe enough taxes, making it easier to cover adoption costs. The changes are set to take effect from 2024.
Key points
The adoption tax credit becomes refundable, meaning families can receive money even if they don't pay taxes.
Standardized third-party affidavits are introduced for adoption verification, simplifying the process.
The changes will apply to tax years beginning after December 31, 2023.
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Additional Information
Adoption Tax Credit Refundability Act of 2023
Print number: HR 3662
Sponsor: Rep. Davis, Danny K. [D-IL-7]
Process start date: 2023-05-25