News on Adoption Tax Credit Extension Beyond 2012

by Mark Demaray on September 24, 2012

As I have posted in this blog in the past, the present law that allows for a very favorable Adoption Tax Credit is due to expire by the end of this year.  Although there seems to be bi-partisan support in Congress for the extension of this tax law in some form, it has not yet been accomplished.    It was announced last week that Senator Landrieu (D-LA) introduced a Bill to make the Adoption Tax Credit permanent and refundable as it was in 2010 and 2011.  The Bill introduced last week is S. 3616, and if passed, it would amend the Internal Revenue Code of 1986 to make permanent the expansion of tax benefits for adoption enacted in 2001 and to permanently reinstate the expansion of those adoption tax benefits that were passed in 2010. Senator Landrieu was joined by Senators Carding (D-MD), Blunt (R-MO) and Hutchison (R-TX) in introducing this legislation.  A companion Bill labeled as HR 4373, was introduced in the House of Representatives with some 29 co-sponsors and it would make the same changes that the Senate Bill proposes.

Congress adjourned last week until November 13 and it is very likley that neither of these Bills will be considered in full before Congress adjourns this Session.  However, there is some hope and indeed an expectation, that Congress will extend a number of tax cuts that are due to expire on December 31, 2012 — including the adoption tax credit.  It would be a good time to contact your Representatives and Senators to encourage them to vote in favor of extending this law to make sure that these tax benefits remain available to those families who offer safe loving homes for children. 

Mark Demaray

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