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119-hr-2833119th CongressWALLET

Adoption Tax Credit Refundability Act of 2025

Sponsored By: Representative Davis, Danny K. [D-IL-7]

Introduced

Summary

Makes the Adoption Tax Credit refundable. The bill relocates the credit into a new Section 36C and requires standard verification for adoptions, including special-needs cases.

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  • Families adopting: Adoptive parents can receive the credit as a cash refund rather than only reducing tax bills. The change applies to tax years beginning after December 31, 2025.
  • Families with prior unused credits: Any excess adoption credit from the year before the change is carried forward and added to that taxpayer's first refundable credit under the new Section 36C.
  • Children with special needs: Regulations must include a standardized third-party affidavit to verify special-needs adoptions and qualified adoption expenses.
  • Tax administration: The bill moves the credit to Section 36C and updates cross-references across the tax code and related statutes. Treasury must issue regulations and guidance that include the affidavit requirement.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Refundable adoption credit with carryforward

If enacted, families who adopt would be able to get the adoption tax credit as a refund, even with no tax owed. Any unused adoption credit from the year before this change would be added to your new credit in your first year after it takes effect. These rules would apply to tax years starting after December 31, 2025.

Standard form to verify adoptions for credit

If enacted, the IRS would provide a standard third-party form to verify a legal adoption when you claim the credit. The form would also apply to adoptions of children with special needs. This would start for tax years beginning after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Davis, Danny K. [D-IL-7]

IL • D

Cosponsors

  • Rep. Moore, Blake D. [R-UT-1]

    UT • R

    Sponsored 4/10/2025

  • Rep. Moore, Gwen [D-WI-4]

    WI • D

    Sponsored 4/10/2025

  • Rep. Feenstra, Randy [R-IA-4]

    IA • R

    Sponsored 4/10/2025

  • Rep. Bacon, Don [R-NE-2]

    NE • R

    Sponsored 4/10/2025

  • Rep. Kamlager-Dove, Sydney [D-CA-37]

    CA • D

    Sponsored 4/10/2025

  • Rep. Aderholt, Robert B. [R-AL-4]

    AL • R

    Sponsored 4/10/2025

  • Rep. Beyer, Donald S. [D-VA-8]

    VA • D

    Sponsored 4/10/2025

  • Rep. Fitzpatrick, Brian K. [R-PA-1]

    PA • R

    Sponsored 4/21/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 5/29/2025

  • Rep. Craig, Angie [D-MN-2]

    MN • D

    Sponsored 6/3/2025

  • Rep. Stauber, Pete [R-MN-8]

    MN • R

    Sponsored 6/3/2025

  • Rep. Pocan, Mark [D-WI-2]

    WI • D

    Sponsored 6/23/2025

Roll Call Votes

No roll call votes available for this bill.

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