Adoption Expert | Adoption Tax Credit Refundability Act

Adopting a child can change a family forever, but for many families in the United States, adoption is just too expensive. It can cost tens of thousands of dollars. That kind of money can stop good families from bringing a child into their home. To help with these costs, Congress created the Federal Adoption Tax Credit. However, there is a problem. Right now, the credit only helps families who owe income taxes. If you don’t owe much or any tax, you don’t get the full benefit. The Adoption Tax Credit Refundability Act wants to fix this.

What Is the Federal Adoption Tax Credit?

This tax credit helps families cover the cost of adoption. You can use it for court costs, lawyer fees, travel, and agency fees. In 2025, the credit will be worth $17,280 per child. That’s a big help, but there’s a catch. If a family doesn’t owe enough tax, they lose part of the credit and the money just disappears.

Why That’s a Problem

This rule hurts lower-income families the most. Imagine a family that adopts a child but doesn’t owe much tax. They can’t use the full credit. However, a higher income family that owes a lot of taxes can.

Families with lower incomes are more likely to adopt children from foster care. These are the kids who need homes the most. The credit should help these families just as much as anyone else. But right now, it doesn’t.

What the New Law Would Do

The Adoption Tax Credit Refundability Act wants to make the credit “refundable.” That means you can get the full amount, even if you don’t owe any taxes. For example, if a family spends $10,000 to adopt a child, they would only get $10,000 back.  On the other hand, even if they don’t spend anything, but a child is deemed to have special needs, they would get the full amount of $17,280 even though they didn’t spend anything.  This would be a big help for many families. It would make sure the credit works for everyone who adopts a child, not just families with higher incomes.

Who Supports This Change?

Many groups support this new bill. The Academy of Adoption and Assisted Reproduction Attorneys is one of them. They are experts in adoption law and know how hard the process can be. Other child-focused groups support it too.

Kids in foster care often wait a long time for a permanent home. They have been through a lot—loss, change, and pain. Making adoption easier helps them find love and stability.

Why It’s the Fair Thing to Do

The credit should help all adoptive families equally. Making it refundable makes the system fairer. It helps families who are doing something great—adopting a child—no matter how much money they make.

It also helps the country. Children adopted into stable families do better in life. They are more likely to be healthy and do well in school. Helping more families adopt can even save money on things like healthcare and social services.

Both Sides Agree

This bill has support from both Republicans and Democrats. Adoption is not a political issue. It’s a human issue. Everyone agrees that helping kids find loving homes is a good thing. That gives this bill a good chance of passing if Congress takes action.

It’s Time to Fix the Credit

The Adoption Tax Credit Refundability Act is a simple but powerful fix. It doesn’t start a new program. It just makes an existing one work better. It would help more families afford adoption. And it would help more kids find permanent homes.

As lawmakers talk about tax laws and how to help families, they should make this a top priority. No family should miss out on help just because they don’t owe much tax. Let’s make adoption affordable for everyone.

It’s the right thing to do. Now, Congress needs to make it happen.