Federal Adoption Tax Credit is Made Permanent

We praise God that the American Taxpayer Relief Act of 2012 (the bill to avert the fiscal cliff) made the adoption tax credit permanent!

Our friends at the Congressional Coalition on Adoption Institute posted this today:

The bill permanently extends the increased adoption tax credit and the adoption assistance programs exclusion. Taxpayers that adopt children can receive a tax credit for qualified adoption expenses. A taxpayer may also exclude from income adoption expenses paid by an employer. The Economic Growth and Tax Relief Reconciliation Act of 2001 increased the credit from $5,000 ($6,000 for a special needs child) to $10,000, and provided a $10,000 income exclusion for employer-assistance programs. The Patient Protection and Affordable Care Act of 2010 extended these benefits to 2011 and made the credit refundable. The bill extends for taxable years beginning after December 31, 2012, the increased adoption credit amount and the exclusion for employer-assistance programs as enacted in EGTRRA.


Jedd Medefind, President of the Christian Alliance for Orphans, said it well:  “The permanent extension of the Adoption Tax Credit not only guarantees vital financial help for families that choose to adopt.  It also underscores the commitment of the American people to the idea that children need families.”

There are still questions about the credit becoming refundable and some have encouraged people to contact congress to push for this. We will post more as information becomes available.

For more information on how the Federal Adoption Tax credit you can read this post.

1 thought on “Federal Adoption Tax Credit is Made Permanent

  1. Pingback: Everything You Want to Know and More about the Adoption Tax Credit « ABBA Fund Blog

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