§23 Adoption expenses

2025—Subsec. (a)(4). Pub. L. 119–21, § 70402(a), added par. (4). Subsec. (c)(1). Pub. L. 119–21, § 70402(c), which directed substitution of “portion of the credit allowable under subsection (a) which is allowed under this subpart” for “credit allowable under subsection (a)”, was executed by making the substitution both places appearing, to reflect the probable intent of Congress. Subsec. (d)(3)(A). Pub. L. 119–21, § 70403(a)(1), inserted “or Indian tribal government” after “a State”. Subsec. (d)(3)(B). Pub. L. 119–21, § 70403(a)(2), inserted “or Indian tribal government” after “such State”. Subsec. (h). Pub. L. 119–21, § 70402(b), amended subsec. (h) generally. Prior to amendment, text read as follows: “In the case of a taxable year beginning after

December 31, 2002, each of the dollar amounts in subsection (a)(3) and paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an amount equal to— “(1) such dollar amount, multiplied by “(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2001’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.” 2018—Subsec. (c)(1). Pub. L. 115–141 substituted “section 25D” for “section 25D and 1400C”. 2017—Subsec. (h)(2). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”. 2013—Subsec. (b)(4). Pub. L. 112–240, § 104(c)(2)(A)(i), struck out par. (4). Prior to amendment, text read as follows: “In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this subpart (other than this section and section 25D) and section 27 for the taxable year.” Subsec. (c). Pub. L. 112–240, § 104(c)(2)(A)(ii), (iii), added par. (1), redesignated par. (3) as (2), and struck out former pars. (1) and (2) which related to rule for years in which all personal credits allowed against regular and alternative minimum tax and rule for other years, respectively. 2010—Subsec. (a)(3). Pub. L. 111–148, § 10909(a)(1)(B), (c), as amended by Pub. L. 111–312, temporarily substituted “$13,170” for “$10,000” in heading and text. See Effective and Termination Dates of 2010 Amendment note below. Subsec. (b)(1). Pub. L. 111–148, § 10909(a)(1)(A), (c), as amended by Pub. L. 111–312, temporarily substituted “$13,170” for “$10,000”. See Effective and Termination Dates of 2010 Amendment note below. Subsec. (b)(4). Pub. L. 111–148, § 10909(b)(2)(I)(i), (c), as amended by Pub. L. 111–312, temporarily struck out par. (4). Text read as follows: “In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of— “(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over “(B) the sum of the credits allowable under this subpart (other than this section and section 25D) and section 27 for the taxable year.” See Effective and Termination Dates of 2010 Amendment note below. Subsec. (c). Pub. L. 111–148, § 10909(b)(2)(I)(ii), (c), as amended by Pub. L. 111–312, temporarily struck out subsec. (c) which related to carryforwards of unused credit. See Effective and Termination Dates of 2010 Amendment note below. Subsec. (h). Pub. L. 111–148, § 10909(a)(1)(C), (c), as amended by Pub. L. 111–312, temporarily amended subsec. (h) generally. Prior to amendment, subsec. (h) related to adjustments for inflation. See Effective and Termination Dates of 2010 Amendment note below. 2008—Subsec. (b)(4)(B). Pub. L. 110–343 inserted “and section 25D” after “this section”. 2005—Subsec. (b)(4). Pub. L. 109–135, § 402(i)(3)(A)(i), substituted “In the case of a taxable year to which section 26(a)(2) does not apply, the credit” for “The credit” in introductory provisions. Subsec. (c). Pub. L. 109–135, § 402(i)(3)(A)(ii), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by subsection (b)(4) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year. No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis.” Pub. L. 109–58, § 1335(b)(1), which directed amendment of subsec. (c) by substituting “this section, section 25D, and section 1400C” for “this section and section 1400C”, was repealed by Pub. L. 109–135, § 402(i)(4). See Effective and Termination Dates of 2005 Amendment notes below. 2002—Subsec. (a)(1). Pub. L. 107–147, § 411(c)(1)(A), reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter— “(A) in the case of an adoption of a child other than a child with special needs, the amount of the qualified adoption expenses paid or incurred by the taxpayer, and “(B) in the case of an adoption of a child with special needs, $10,000.” Subsec. (a)(2). Pub. L. 107–147, § 411(c)(1)(C), struck out concluding provisions which read as follows: “In the case of the adoption of a child with special needs, the credit allowed under paragraph (1) shall be allowed for the taxable year in which the adoption becomes final.” Subsec. (a)(3). Pub. L. 107–147, § 411(c)(1)(B), added par. (3). Subsec. (b)(1). Pub. L. 107–147, § 411(c)(1)(D), substituted “subsection (a)” for “subsection (a)(1)(A)”. Subsec. (h). Pub. L. 107–147, § 418(a)(1), substituted “subsection (a)(3)” for “subsection (a)(1)(B)” in introductory provisions and inserted concluding provisions. Subsec. (i). Pub. L. 107–147, § 411(c)(1)(E), substituted “the dollar amounts in subsections (a)(3) and (b)(1)” for “the dollar limitation in subsection (b)(1)”. 2001—Subsec. (a)(1). Pub. L. 107–16, § 202(a)(1), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.” Subsec. (a)(2). Pub. L. 107–16, § 202(c), inserted concluding provisions. Subsec. (b)(1). Pub. L. 107–16, § 202(b)(1)(A), substituted “subsection (a)(1)(A)” for “subsection (a)” and “$10,000” for “$5,000” and struck out “($6,000, in the case of a child with special needs)” before period at end. Subsec. (b)(2)(A)(i). Pub. L. 107–16, § 202(b)(2)(A), substituted “$150,000” for “$75,000”. Subsec. (b)(4). Pub. L. 107–16, § 202(f)(1), added par. (4). Subsec. (c). Pub. L. 107–16, § 202(f)(2)(A), substituted “subsection (b)(4)” for “section 26(a)” and struck out “reduced by the sum of the credits allowable under this subpart (other than this section and section 24 and 1400C)” before “, such excess”. Pub. L. 107–16, § 201(b)(2)(E), substituted “and section 24 and 1400C” for “and section 1400C”. Subsec. (d)(2). Pub. L. 107–16, § 202(d)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘eligible child’ means any individual— “(A) who— “(i) has not attained age 18, or “(ii) is physically or mentally incapable of caring for himself, and “(B) in the case of qualified adoption expenses paid or incurred after

December 31, 2001, who is a child with special needs.” Subsecs. (h), (i). Pub. L. 107–16, § 202(e)(1), added subsec. (h) and redesignated former subsec. (h) as (i). 1998—Subsec. (b)(2)(A). Pub. L. 105–206, § 6018(f)(1), inserted “(determined without regard to subsection (c))” after “for any taxable year” in introductory provisions. Subsec. (c). Pub. L. 105–206, § 6008(d)(6), inserted “and section 1400C” after “other than this section”. 1997—Subsec. (a)(2). Pub. L. 105–34, § 1601(h)(2)(A), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The credit under paragraph (1) with respect to any expense shall be allowed— “(A) for the taxable year following the taxable year during which such expense is paid or incurred, or “(B) in the case of an expense which is paid or incurred during the taxable year in which the adoption becomes final, for such taxable year.” Subsec. (b)(2)(B). Pub. L. 105–34, § 1601(h)(2)(B), substituted “determined without regard to section 911, 931, and 933.” for “determined— “(i) without regard to section 911, 931, and 933, and “(ii) after the application of section 86, 135, 137, 219, and 469.”

made by this section [amending this section] shall apply to taxable years beginning after

December 31, 2024.” Pub. L. 119–21, title VII, § 70403(b),

July 4, 2025, 139 Stat. 214, provided that: “The

made by this section [see Tables for classification] shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.” Expenses Paid or Incurred Before 2002 Pub. L. 107–147, title IV, § 411(c)(1)(F), Mar. 9, 2002, 116 Stat. 45, provided that: “Expenses paid or incurred during any taxable year beginning before

January 1, 2002, may be taken into account in determining the credit under section 23 of the Internal Revenue Code of 1986 only to the extent the aggregate of such expenses does not exceed the applicable limitation under section 23(b)(1) of such Code as in effect on the day before the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 [

June 7, 2001].” Tax Credit and Gross Income Exclusion Study and Report Pub. L. 104–188, title I, § 1807(d), Aug. 20, 1996, 110 Stat. 1903, provided that: “The Secretary of the Treasury shall study the effect on adoptions of the tax credit and gross income exclusion established by the