Tuesday, September 25, 2012

An Important Update on Efforts to Save the Adoption Tax Credit

Here's some news on a significant issue that's close to the hearts of both foster-adoptive parents and parents who are adopting domestically or internationally, as well as all of us who hope to adopt in the next few years. You may have heard about the fact that the Adoption Tax Credit expires at the end of 2012, meaning that if no new bill is passed people who adopt in the future will receive no tax credit. Although the new bills to extend the tax credit beyond 2012 (HR 4373 and S 3616) now have a list of sponsors, there have been rumors and concerns circulating regarding whether these bills will be sacrificed for political reasons as election day approaches.

An online campaign called Save the Adoption Tax Credit issued the following statement today in response to these concerns:

Many of you have been asking about what will happen with HR 4373 and S 3616 now that Congress is out of session. We expect that Congress will consider extending and enhancing the adoption tax credit as part of broader tax reform negotiations that take place after the November election. It is unlikely that there will be votes on these individual bills. It is still very important for you to ask your Representative to co-sponsor HR 4373 and both your Senators to co-sponsor S 3616. The more support these bills have—meaning the more members of Congress hear from their constituents and understand the importance of extending the adoption tax credit and making it refundable—the better chance that a refundable adoption tax credit will be included in the final tax package agreed upon by Congress. For more information about the adoption credit and the legislative process, see http://adoptiontaxcredit.org/faqs

What's most important right now is that you voice your support for this bill with your own Representatives and Senators. If they are not already sponsoring these bills, please ask that they do.

You can track the progress of HR 4373 here (and click on "Take a Position" to contact your Representatives).

You can track the progress of S 3616 here (and click on "Take a Position" to contact your Senators.)

Don't be discouraged that the GovTrack site shows a low chance of these bills passing - If enough support is shown, these bills may be incorporated into a larger tax package. What's important right now is not that these individual bills pass but that the tax credit is included in some type of legislation that passes in Congress. E-mailing and calling your elected officials on these specific bills is the best way to show them how important this issue is to Americans who may not be able to afford to adopt without this tax credit.

Please make sure to mention the following key points:
  • The credit should be refundable so that low and middle income Americans can benefit from it, not just wealthier families with more tax liability who can use the non-refundable credit. The tax credit should be focused on supporting adoption by working and middle class Americans who most need the financial help to make adoption a reality.
  • The credit should be permanent, and made part of the tax code rather than being at the whim of politicians.
More "talking points" can be found on the Save the Adoption Tax Credit site. Consider "liking" their page on Facebook.


  1. We finalized our adoption on May 16,2012. Will we receive the tax credit?

  2. Stephanie - My understanding is that the tax credit as it stands extends through the year 2012 but is non-refundable for 2012 adoptions. http://taxes.about.com/od/deductionscredits/qt/adoptioncredit.htm