Tax Reform

Washington, D.C. - On Thursday, April 10, 2025, Representatives Danny K. Davis (D-IL), Blake Moore (R-UT), Gwen Moore (D-WI), Randy Feenstra (R-IA), Don Bacon (R-NE), Sydney Kamlager-Dove (D-CA), and Robert Aderholt (R-AL) introduced the bipartisan, bicameral Adoption Tax Credit Refundability Act of 2025. The legislation would help children find permanent, loving families by removing income as a barrier to adoption. Senators Kevin Cramer (R-ND) and Amy Klobuchar (D-MN) will introduce companion legislation in the Senate. The Adoption Tax Credit helps families offset some of the costs of adoption, especially for children with special needs. Currently, the tax credit disadvantages low- and middle-income families, in particular families with annual incomes between $30,000 to $50,000. Thus, the credit inadvertently creates barriers to permanency for a substantial number of families. During the Great Recession, Congress allowed families to receive the Adoption Tax Credit if the credit exceeded their tax liability recognizing that the economic hardship could prevent families from adopting or exact a heavy financial toll from families choosing adoption. The Adoption Tax Credit Refundability Act of 2025 would again make this credit refundable to remove income as a barrier to adoption to help more children join permanent, loving families.