Adoption Tax Credit Refundability Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1458 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1458

To amend the Internal Revenue Code of 1986 to provide for a refundable 
                          adoption tax credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2025

Mr. Cramer (for himself, Ms. Klobuchar, Mrs. Blackburn, Mr. Lujan, Mr. 
   Hawley, Mr. King, Mr. Lankford, Mr. Fetterman, Mr. Scott of South 
  Carolina, Mr. Merkley, Mr. Van Hollen, Ms. Warren, Mr. Warner, Mr. 
    Kaine, Ms. Duckworth, Ms. Rosen, and Mr. Kelly) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide for a refundable 
                          adoption tax credit.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Adoption Tax Credit Refundability 
Act of 2025''.

SEC. 2. REFUNDABLE ADOPTION TAX CREDIT.

    (a) Credit Made Refundable.--
            (1) Credit moved to subpart relating to refundable 
        credits.--The Internal Revenue Code of 1986 is amended--
                    (A) by redesignating section 23 as section 36C, and
                    (B) by moving section 36C (as so redesignated) from 
                subpart A of part IV of subchapter A of chapter 1 to 
                the location immediately before section 37 in subpart C 
                of part IV of subchapter A of chapter 1.
            (2) Conforming amendments.--
                    (A) Section 25(e)(1)(C) of such Code is amended by 
                striking ``sections 23 and 25D'' and inserting 
                ``section 25D''.
                    (B) Section 36C of such Code, as so redesignated, 
                is amended--
                            (i) in subsection (b)(2)(A), by striking 
                        ``(determined without regard to subsection 
                        (c))'',
                            (ii) by striking subsection (c), and
                            (iii) by redesignating subsections (d) 
                        through (i) as subsections (c) through (h), 
                        respectively.
                    (C) Section 137 of such Code is amended--
                            (i) in subsection (d), by striking 
                        ``section 23(d)'' and inserting ``section 
                        36C(c)'', and
                            (ii) in subsection (e), by striking 
                        ``subsections (e), (f), and (g) of section 23'' 
                        and inserting ``subsections (d), (e), and (f) 
                        of section 36C''.
                    (D) Section 1016(a)(26) of such Code is amended by 
                striking ``23(g)'' and inserting ``36C(f)''.
                    (E) Section 6211(b)(4)(A) of such Code is amended 
                by inserting ``36C,'' after ``36B,''.
                    (F) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 23.
                    (G) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``36C,'' 
                after ``36B,''.
                    (H) Paragraph (33) of section 471(a) of the Social 
                Security Act (42 U.S.C. 671(a)) is amended by striking 
                ``section 23'' and inserting ``section 36C''.
                    (I) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of the Internal Revenue 
                Code of 1986 is amended by inserting after the item 
                relating to section 36B the following new item:

``Sec. 36C. Adoption expenses.''.
    (b) Third-Party Affidavits.--Section 36C(h) of the Internal Revenue 
Code of 1986, as redesignated and moved by subsection (a), is amended--
            (1) by striking ``such regulations'' and inserting ``such 
        regulations and guidance'',
            (2) by striking ``including regulations which treat'' and 
        inserting ``including regulations and guidance which--
            ``(1) treat'',
            (3) by striking the period at the end and inserting ``, 
        and'', and
            (4) by adding at the end the following:
            ``(2) provide for a standardized third-party affidavit for 
        purposes of verifying a legal adoption--
                    ``(A) of a type with respect to which qualified 
                adoption expenses may be paid or incurred, or
                    ``(B) involving a child with special needs for 
                purposes of subsection (a)(3).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
    (d) Transitional Rule To Treat Carryforward as Refundable Credit.--
In the case of any excess described in section 23(c) of the Internal 
Revenue Code of 1986 with respect to any taxpayer for the taxable year 
which precedes the first taxable year to which the amendments made by 
this section apply, such excess shall be added to the credit allowable 
under section 36C(a) of such Code with respect to such taxpayer for 
such first taxable year.
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