I
118THCONGRESS
1
STSESSION H. R. 3662
To amend the Internal Revenue Code of 1986 to provide for a refundable
adoption tax credit.
IN THE HOUSE OF REPRESENTATIVES
MAY25, 2023
Mr. D
AVISof Illinois (for himself, Mr. MOOREof Utah, Ms. MOOREof Wis-
consin, Mr. F
EENSTRA, Mr. BACON, Ms. KAMLAGER-DOVE, and Ms.
S
CANLON) introduced the following bill; which was referred to the Com-
mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
for a refundable adoption tax credit.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Adoption Tax Credit 4
Refundability Act of 2023’’. 5
SEC. 2. REFUNDABLE ADOPTION TAX CREDIT. 6
(a) C
REDITMADEREFUNDABLE.— 7
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(1) CREDIT MOVED TO SUBPART RELATING TO 1
REFUNDABLE CREDITS .—The Internal Revenue 2
Code of 1986 is amended— 3
(A) by redesignating section 23 as section 4
36C, and 5
(B) by moving section 36C (as so redesig-6
nated) from subpart A of part IV of subchapter 7
A of chapter 1 to the location immediately be-8
fore section 37 in subpart C of part IV of sub-9
chapter A of chapter 1. 10
(2) C
ONFORMING AMENDMENTS .— 11
(A) Section 25(e)(1)(C) of such Code is 12
amended by striking ‘‘sections 23 and 25D’’ 13
and inserting ‘‘section 25D’’. 14
(B) Section 36C of such Code, as so redes-15
ignated, is amended— 16
(i) in subsection (b)(2)(A), by striking 17
‘‘(determined without regard to subsection 18
(c))’’, 19
(ii) by striking subsection (c), and 20
(iii) by redesignating subsections (d) 21
through (i) as subsections (c) through (h), 22
respectively. 23
(C) Section 137 of such Code is amend-24
ed— 25
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(i) in subsection (d), by striking ‘‘sec-1
tion 23(d)’’ and inserting ‘‘section 2
36C(c)’’, and 3
(ii) in subsection (e), by striking ‘‘sub-4
sections (e), (f), and (g) of section 23’’ and 5
inserting ‘‘subsections (d), (e), and (f) of 6
section 36C’’. 7
(D) Section 1016(a)(26) of such Code is 8
amended by striking ‘‘23(g)’’ and inserting 9
‘‘36C(f)’’. 10
(E) Section 6211(b)(4)(A) of such Code is 11
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 12
(F) The table of sections for subpart A of 13
part IV of subchapter A of chapter 1 of such 14
Code is amended by striking the item relating 15
to section 23. 16
(G) Paragraph (2) of section 1324(b) of 17
title 31, United States Code, is amended by in-18
serting ‘‘36C,’’ after ‘‘36B,’’. 19
(H) Paragraph (33) of section 471(a) of 20
the Social Security Act (42 U.S.C. 671(a)) is 21
amended by striking ‘‘section 23’’ and inserting 22
‘‘section 36C’’. 23
(I) The table of sections for subpart C of 24
part IV of subchapter A of chapter 1 of the In-25
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ternal Revenue Code of 1986 is amended by in-1
serting after the item relating to section 36B 2
the following new item: 3
‘‘Sec. 36C. Adoption expenses.’’.
(b) THIRD-PARTYAFFIDAVITS.—Section 36C(h) of 4
the Internal Revenue Code of 1986, as redesignated and 5
moved by subsection (a), is amended— 6
(1) by striking ‘‘such regulations’’ and inserting 7
‘‘such regulations and guidance’’, 8
(2) by striking ‘‘including regulations which 9
treat’’ and inserting ‘‘including regulations and 10
guidance which— 11
‘‘(1) treat’’, 12
(3) by striking the period at the end and insert-13
ing ‘‘, and’’, and 14
(4) by adding at the end the following: 15
‘‘(2) provide for a standardized third-party affi-16
davit for purposes of verifying a legal adoption— 17
‘‘(A) of a type with respect to which quali-18
fied adoption expenses may be paid or incurred, 19
or 20
‘‘(B) involving a child with special needs 21
for purposes of subsection (a)(3).’’. 22
(c) E
FFECTIVEDATE.—The amendments made by 23
this section shall apply to taxable years beginning after 24
December 31, 2023. 25
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(d) TRANSITIONALRULETOTREATCARRYFORWARD 1
ASREFUNDABLECREDIT.—In the case of any excess de-2
scribed in section 23(c) of the Internal Revenue Code of 3
1986 with respect to any taxpayer for the taxable year 4
which precedes the first taxable year to which the amend-5
ments made by this section apply, such excess shall be 6
added to the credit allowable under section 36C(a) of such 7
Code with respect to such taxpayer for such first taxable 8
year. 9
Æ
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