Adoption Tax Credit Should be Refundable, Groups Urge Congress
By Samantha Handler / November 28, 2022 12:04PM ET / Bloomberg Law
A coalition of adoption advocacy groups is asking Congress to reinstate refundability for an adoption tax credit in any end-of-year legislation, a move they say will help make adoption more affordable, according to a letter sent Monday. The Adoption Tax Credit Working Group urged party leaders and the top Democrats and Republicans on the House Ways and Means and Senate Finance committees to make the adoption tax credit refundable. While the tax credit was made permanent in 2013, the refundability portion wasn’t, according to the letter. The credit, which can reach a maximum of $14,400 per eligible child, was last refundable in 2011.“ Including ATC refundability in end-of-year tax legislation would demonstrate Congress’s dedication to help struggling American families with the cost of living and realize their dreams of being able to provide loving, forever homes for children in need, regardless of tax liability,” the working group wrote.
Sens. Bob Casey (D-Pa.) and Roy Blunt (R-Mo.) are leading the push for the measure in the Senate. Rep. Danny Davis (D-Ill.) sponsors the House version. Members of the working group include the National Council For Adoption and the Adopt America Network.
To contact the reporter on this story: Samantha Handler in Washington at shandler@bloombergindustry.com.
To contact the editors responsible for this story: Kim Dixon at kdixon@bloombergindustry.com; Alex Clearfield at aclearfield@bloombergindustry.com
Update: Thank you to the Biden Administration for including the ATCRA in the FY2023 Budget Greenbook!
March 28, 2022 – https://home.treasury.gov/news/press-releases/jy0683
February 8, 2022 – The Adoption Tax Credit Working Group calls on the Biden administration to include the bipartisan Adoption Tax Credit Refundability Act of 2021 to the FY 2023 budget. By adding this to the Green Book, the Administration would show a strong commitment to supporting all adoptive families, including low-income households.
Click here to read the working group’s letter to the Administration.