S. 1458

119 S1458 IS: Adoption Tax Credit Refundability Act of 2025
 U.S. Senate
 2025-04-10
 text/xml
 EN
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 II  119th CONGRESS  1st Session  S. 1458  IN THE SENATE OF THE UNITED STATES   April 10, 2025   Mr. Cramer  (for himself,  Ms. Klobuchar ,  Mrs. Blackburn ,  Mr. Luján ,  Mr. Hawley ,  Mr. King ,  Mr. Lankford ,  Mr. Fetterman ,  Mr. Scott of South Carolina ,  Mr. Merkley ,  Mr. Van Hollen ,  Ms. Warren ,  Mr. Warner ,  Mr. Kaine ,  Ms. Duckworth ,  Ms. Rosen , and  Mr. Kelly ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to provide for a refundable adoption tax credit.
1.
Short title
This Act may be cited as the   Adoption Tax Credit Refundability Act of 2025  .
2.
Refundable adoption tax credit
(a)
Credit made refundable
(1)
Credit moved to subpart relating to refundable credits
The Internal Revenue Code of 1986 is amended—
(A)
by redesignating section 23 as section 36C, and
(B)
by moving section 36C (as so redesignated) from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1.
(2)
Conforming Amendments
(A)
Section 25(e)(1)(C) of such Code is amended by striking  sections 23 and 25D  and inserting  section 25D .
(B)
Section 36C of such Code, as so redesignated, is amended—
(i)
in subsection (b)(2)(A), by striking  (determined without regard to subsection (c)) ,
(ii)
by striking subsection (c), and
(iii)
by redesignating subsections (d) through (i) as subsections (c) through (h), respectively.
(C)
Section 137 of such Code is amended—
(i)
in subsection (d), by striking  section 23(d)  and inserting  section 36C(c) , and
(ii)
in subsection (e), by striking  subsections (e), (f), and (g) of section 23  and inserting  subsections (d), (e), and (f) of section 36C .
(D)
Section 1016(a)(26) of such Code is amended by striking  23(g)  and inserting  36C(f) .
(E)
Section 6211(b)(4)(A) of such Code is amended by inserting  36C,  after  36B, .
(F)
The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 23.
(G)
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting  36C,  after  36B, .
(H)
Paragraph (33) of section 471(a) of the Social Security Act ( 42 U.S.C. 671(a) ) is amended by striking  section 23  and inserting  section 36C .
(I)
The table of sections for subpart C of part IV of subchapter A of  chapter 1  of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:
 Sec. 36C. Adoption expenses. .
(b)
Third-Party affidavits
 Section 36C(h)  of the Internal Revenue Code of 1986, as redesignated and moved by subsection (a), is amended—
(1)
by striking  such regulations  and inserting  such regulations and guidance ,
(2)
by striking  including regulations which treat  and inserting
including regulations and guidance which—
(1)
treat
 ,
(3)
by striking the period at the end and inserting  , and , and
(4)
by adding at the end the following:
(2)
provide for a standardized third-party affidavit for purposes of verifying a legal adoption—
(A)
of a type with respect to which qualified adoption expenses may be paid or incurred, or
(B)
involving a child with special needs for purposes of subsection (a)(3).
 .
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2024.
(d)
Transitional rule To treat carryforward as refundable credit
In the case of any excess described in  section 23(c)  of the Internal Revenue Code of 1986 with respect to any taxpayer for the taxable year which precedes the first taxable year to which the amendments made by this section apply, such excess shall be added to the credit allowable under section 36C(a) of such Code with respect to such taxpayer for such first taxable year.