Senate Moves to Make Federal Adoption Tax Credit Permanent

Sen. Jim Bunning introduced a bill (S246) on Feb. 1 to make permanent the 2001 increase in the adoption tax credit from $5,000 to $10,000, and to repeal the sunset provision for the credit (which is set to expire in 2010). The legislation, entitled “The Adoption Tax Relief Guarantee Act,” was referred to the Committee on Finance. The U.S. House unanimously passed a companion bill (HR1057) in Sept. 2004.

In a related action, Rep. Todd Russell Platts introduced legislation (HR347) on Jan. 25 that would amend the Internal Revenue Code of 1986, making the credit for adoption expenses permanent and repealing the five-year carryover limitation of unused credit. Platt’s measure was referred to the House Committee on Ways and Means. To read the bills, go to: http://thomas.loc.gov/ and search for S246 or HR347 in the bill number field.

If you'd like to see the tax credit extended permanently, now would be the perfect time to write to your state's senators. To learn how to do this, read my blog for January 19, 2005 ("Adoption Tax Credit to End in 2010").

For general information about the tax credit, read my November 7, 2004 entry ("The Federal Adoption Tax Credit Explained"). You can access these entries from the "Financing Adoption" section.

I highly recommend subscribing to the Evan B. Donaldson Adoption Institute's monthly e-newsletter. The newsletter provides current news and information about adoption law, policy and research. You can read past their e-Newsletters at http://www.adoptioninstitute.org/newsletter/archive.html.

Information in this entry is from the Evan B. Donaldson Adoption Institute's February 2005 e-newsletter.