The federal adoption tax credit for 2012 is $12,650. (Please see our detailed article on the tax credit for details). If no further action is taken by Congress to extend the tax credit, it will expire in 2013, with the exception of a smaller credit continuing to exist ($5,000), and only for special needs children.
On April 17th, Representative Bruce Braley (Iowa) introduced the Making Adoption Affordable Act (Bill number: H.R. 4373). If enacted, it will not only renew, but also expand, the federal adoption tax credit, making it permanent and refundable. (For 2012, the credit is not refundable - meaning you must have paid federal taxes to obtain the credit, and every year or two legislation is introduced to extend the credit, so making it permanent would be very beneficial to the adoption community.) The bill would permanently make the credit $13,360, with adjustments for inflation.
It is strongly encouraged that everyone contact their Congressional representatives, both in the House and Senate, and let them know you support this bill. Time is of the essence!
By adoption101.com staff