WASHINGTON – U.S. Senators Kevin Cramer (R-ND) and Bob Casey (D-PA) introduced the Adoption Tax Credit Refundability Act, which would restore the refundable portion of adoption tax credit and support families wishing to adopt by easing the associated financial costs. Additionally, the legislation will make thousands of adoptive families eligible for the full credit.

“As many adoptive families know, the financial cost of an adoption can be significant. This tax credit is an important benefit to encourage prospective families to adopt. Shifting it from nonrefundable to refundable will allow families who experience the joy of adoption to take full advantage of the credit,regardless of their tax burden,” said Senator Cramer.

“The more children that are adopted by loving families, the better off our Nation is,” said Senator Casey. “The Adoption Tax Credit has been a proven success in increasing families’ ability to offer permanent homes to adoptive children and this bill will allow more families to experience the joy of expanding their family through adoption.”

While the American Taxpayer Relief Act made the adoption tax credit permanent, it did not extend the credit’s refundability provisions which were available in 2010 and 2011. The Adoption Tax Credit Refundability Act would restore the refundable portion.

This legislation is cosponsored by U.S. Senators Sherrod Brown (D-OH), Shelley Moore Capito (R-WV), Tammy Duckworth (D-IL), Dianne Feinstein (D-CA), John Fetterman (D-PA), Josh Hawley (R-MO), Cindy Hyde-Smith (R-MS), Mark Kelly (D-AZ), Amy Klobuchar (D-MN), James Lankford (R-OK), Ben Ray Luján (D-NM), James Risch (R-ID), Mike Rounds (R-SD), Marco Rubio (R-FL), Tim Scott (R-SC), Debbie Stabenow (D-MI), Chris Van Hollen (D-MD), Mark Warner (D-VA), Elizabeth Warren (D-MA), Sheldon Whitehouse (D-RI), Roger Wicker (R-MS), and Ron Wyden (D-OR).

Click here for bill text.

Background:

In February 2023, Senator Cramer was named Co-Chair of the Congressional Coalition of Adoption (CCA), a joint selection by the CCA and the Congressional Coalition on Adoption Institute. Per the CCAI, the CCA is the largest bicameral, bipartisan caucus in Congress.