Adoption Tax Credit Saved for 2013 and is now Permanent.….

by Mark Demaray on January 2, 2013

As you may seen in the last few weeks if you watched any news coverage, the so called “Fiscal Cliff” Bill that finally passed in Congress and was signed by the President today, did include a provision making the Adoption Tax Credit a permanent part of the Internal Revenue Code – so adoptive families will still get this tax benefit and it is no longer subject to a “sunset provision” with an expiration date on the applicability of this tax credit.   Although the final version of the law did not have the “refundable” tax credit feature we saw in 2010 and 2011 as many of us wanted, as members of Congress and the President have all repeatedly stated, the final version of the law was not all that we had hoped for in all respects, but was the result of many compromises.    

I am proud to say that I am a member of the American Academy of Adoption Attorneys who joined together with over 150 other groups to form a coalition of adoption and family oriented organizations whose collective resources were used to communicate with the White House and with members of Congress to get the message to them about the vital importance of keeping this law in place to help children find forever families and make adoption affordable for all. 

In this very difficult economic climate in Washington DC where we can expect to see many family related programs completely eliminated, we were able to save this Adoption Tax Credit that has been estimated to represent a benefit of some $5.58 Billion dollars to the families who adopt a child over the next ten years.  Simply a remarkable result that was not at all certain — and a result that I strongly believe was made possible at least in part by the outstanding and tireless efforts of the many organizations and families who contacted their elected representatives to advocate for this law in recent months.

We will know more about the details of the now permanent Adoption Tax Credit in the coming month or so as the new tax credit limit amount and the income qualifying limits will calculated based on the CPI as the tax code allows.  It is likely that that limit of the Adoption Tax Credit for 2013 will be similar to the amount in 2012 and I will post the final and updated information here as soon as it is known and published.

Mark

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