Three United States senators have introduced a bipartisan bill to help make adopting affordable for families nationwide. U.S. Senators Roy Blunt (R-MO), Bob Casey (D-PA), and James Inhofe (R-OK) announced the Adoption Tax Credit Refundability Act, whch will make the adoption tax credit full refundable. In a news release, Sen. Blunt said, “Over 100,000 children are waiting for adoption into a family who can give them the loving home they deserve. This bipartisan bill will restore the refundability portion of the tax credit to make adoption more affordable for hardworking families….”
The adoption tax credit was made permanent in the American Taxpayer Relief Act in January 2013. However, that law did not extend the refundability provisions that applied to the adoption tax credit in 2010 and 2011. The Adoption Tax Credit Refundability Act would restore the refundable portion of this critical support for families wishing to adopt.
According to the Department of Health and Human Services, about one-third of all adopted children live in families with annual household incomes at or below 200 percent of the poverty level. Despite the common misperception that only wealthy families adopt, nearly 46 percent of children adopted from foster care live in families with incomes at or below 200 percent of the federal poverty level. Many of these families’ income taxes are so low that they cannot benefit from the adoption tax credit at all unless it is refundable.
Sen. Casey added, “It is a common misconception that only wealthy families adopt…. This legislation is a commonsense approach to improve lower-income families’ ability to adopt and support children from foster care.”
For Oklahoma Sen. Inhofe, adoption hits close to home. He says, “My family knows firsthand the joys and blessings adoption brings. But adoption is not without its difficulties and, too often, can be a costly process. Making the adoption tax credit fully refundable will ease that financial burden so more families can choose to adopt and welcome children into their homes.”