Adoption Tax Credit Refundability Act of 2021

1/11/2023, 1:49 PM

Adoption Tax Credit Refundability Act of 2021

This bill makes the tax credit for adoption expenses refundable.

Bill 117 HR 3031, also known as the Adoption Tax Credit Refundability Act of 2021, is a piece of legislation introduced in the US Congress. The purpose of this bill is to make the adoption tax credit fully refundable, meaning that families who adopt a child would receive the full amount of the credit even if they do not owe any federal income tax.

Currently, the adoption tax credit is non-refundable, which means that families can only receive the credit up to the amount of their tax liability. This can be a barrier for lower-income families who may not owe enough in taxes to fully benefit from the credit. By making the credit refundable, this bill aims to make adoption more accessible and affordable for all families, regardless of their income level.

The Adoption Tax Credit Refundability Act of 2021 has received bipartisan support in Congress, with lawmakers from both parties recognizing the importance of supporting adoptive families. Proponents of the bill argue that making the adoption tax credit refundable will help more children find loving homes and reduce the financial burden on families who choose to adopt. Overall, Bill 117 HR 3031 seeks to improve the adoption process and provide financial assistance to families who are welcoming a child into their home through adoption. It will be important to monitor the progress of this bill as it moves through the legislative process to see if it becomes law and how it may impact adoptive families in the United States.
Congress
117

Number
HR - 3031

Introduced on
2021-05-07

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

5/7/2021

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Adoption Tax Credit Refundability Act of 2021

This bill makes the tax credit for adoption expenses refundable.

Bill 117 HR 3031, also known as the Adoption Tax Credit Refundability Act of 2021, is a piece of legislation introduced in the US Congress. The purpose of this bill is to make the adoption tax credit fully refundable, meaning that families who adopt a child would receive the full amount of the credit even if they do not owe any federal income tax.

Currently, the adoption tax credit is non-refundable, which means that families can only receive the credit up to the amount of their tax liability. This can be a barrier for lower-income families who may not owe enough in taxes to fully benefit from the credit. By making the credit refundable, this bill aims to make adoption more accessible and affordable for all families, regardless of their income level.

The Adoption Tax Credit Refundability Act of 2021 has received bipartisan support in Congress, with lawmakers from both parties recognizing the importance of supporting adoptive families. Proponents of the bill argue that making the adoption tax credit refundable will help more children find loving homes and reduce the financial burden on families who choose to adopt. Overall, Bill 117 HR 3031 seeks to improve the adoption process and provide financial assistance to families who are welcoming a child into their home through adoption. It will be important to monitor the progress of this bill as it moves through the legislative process to see if it becomes law and how it may impact adoptive families in the United States.
Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to provide for a refundable adoption tax credit.

Policy Areas
Taxation

Potential Impact
Adoption and foster care
Income tax credits

Comments

Recent Activity

Latest Summary6/30/2021

Adoption Tax Credit Refundability Act of 2021

This bill makes the tax credit for adoption expenses refundable.


Latest Action5/7/2021
Referred to the House Committee on Ways and Means.