To amend the Internal Revenue Code of 1986 to make the credit for the adoption of special needs children refundable.

This bill makes the tax credit for the adoption of children with special needs refundable.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2510 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 2510

 To amend the Internal Revenue Code of 1986 to make the credit for the 
             adoption of special needs children refundable.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2023

    Mr. Nunn of Iowa (for himself and Mr. Davis of North Carolina) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to make the credit for the 
             adoption of special needs children refundable.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ADOPTION CREDIT FOR SPECIAL NEEDS CHILDREN MADE REFUNDABLE.

    (a) In General.--Section 23 of the Internal Revenue Code of 1986 is 
amended by redesignating subsection (i) as subsection (j) and by 
inserting after subsection (h) the following new subsection:
    ``(i) Portion of Credit Related to Special Needs Children Made 
Refundable.--
            ``(1) In general.--So much of the credit allowed under this 
        section for any taxable year (determined without regard to this 
        subsection and subsection (c)) as does not exceed the special 
        needs adoption expenses for such taxable year shall be treated 
        as a credit allowed under subpart C (and not allowed under this 
        section).
            ``(2) Special needs adoption expenses.--For purposes of 
        this subsection, the term `special needs adoption expenses' 
        means, with respect to any taxpayer for any taxable year, the 
        aggregate amount of qualified adoption expenses with respect to 
        adoptions of children with special needs which is taken into 
        account in determining the credit allowed under this section to 
        such taxpayer for such taxable year (determined without regard 
        to this subsection, subsection (b)(2), and subsection (c)).''.
    (b) Coordination With Carryforward of Non-Refundable Portion.--
Section 23(c)(1) of such Code is amended by striking ``under subsection 
(a)'' and inserting ``under this section (determined after application 
of subsection (i))''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the later of the date of the 
enactment of this Act or December 31, 2023.
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