H.R.2833 - Adoption Tax Credit Refundability Act of 2025 (119th Congress)
Summary
H.R.2833, the Adoption Tax Credit Refundability Act of 2025, aims to amend the Internal Revenue Code of 1986 to make the adoption tax credit refundable. This bill redesignates section 23 as section 36C and moves it to subpart C, making it a refundable credit. The bill also includes conforming amendments to other sections of the code and provides for standardized third-party affidavits to verify legal adoptions.
Expected Effects
The primary effect of this bill is to allow lower-income families to fully benefit from the adoption tax credit, even if they have little or no tax liability. This change would provide direct financial assistance to families incurring adoption expenses. It also simplifies the process by introducing standardized third-party affidavits for verification.
Potential Benefits
- Makes the adoption tax credit accessible to more families, particularly those with lower incomes.
- Provides direct financial relief to families incurring adoption expenses.
- Simplifies the adoption process by standardizing third-party affidavit requirements.
- Could potentially encourage more adoptions, benefiting children in need of homes.
- Reduces the financial burden on families adopting children with special needs.
Most Benefited Areas:
Potential Disadvantages
- Increases government spending due to the refundable nature of the credit.
- May require additional administrative oversight to prevent fraudulent claims.
- Could potentially lead to increased complexity in tax preparation for some families.
- The cost of the program may need to be offset by cuts in other areas, potentially impacting other social programs.
- There may be unintended consequences related to the standardized affidavit process.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to tax and spend for the general welfare, and supporting adoption can be argued to promote the well-being of children and families. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).