Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB2895

Introduced
9/21/23  

Caption

Adoption Tax Credit Refundability Act of 2023

Impact

The proposed modifications in SB2895 are expected to promote adoption by lessening the financial challenges encountered by prospective adoptive parents. By making the tax credit refundable, the bill directly impacts state laws regarding taxation and incentivizes more families to consider adoption. The adjustments also facilitate access for families with limited tax liabilities, who otherwise would not benefit from a non-refundable tax credit and could deter potential adopters from pursuing adoption.

Summary

SB2895, known as the 'Adoption Tax Credit Refundability Act of 2023', proposes changes to the Internal Revenue Code to provide a refundable adoption tax credit aimed at easing the financial burden associated with adoption costs. This bill seeks to enhance the support for adoptive families by enabling taxpayers to receive a refund for adoption expenses that exceed their tax liability. The bill consolidates and restructures existing provisions to make the adoption tax credit more accessible to a broader range of families, particularly those adopting children with special needs.

Contention

While SB2895 aims to support adoption, it may raise points of contention surrounding the financial implications for state revenue. Opponents may argue that the implementation of a refundable tax credit could lead to significant reductions in state tax income. Additionally, there may be discussions regarding the necessity of such tax breaks in the broader context of existing support systems for families and whether this creates an imbalance in resource allocation across different social programs. The debates might further explore the criteria for eligibility in the context of the adoption process.

Companion Bills

US SB74

Related Providing for Life Act of 2023 This bill revises various programs and supports for families and children related to taxes, health, and other benefits. First, the bill increases the child tax credit to a maximum of $3,500 per child ($4,500 per child under the age of six) and makes permanent the increased income threshold over which the credit phases out. The bill further eliminates the federal deduction for certain state and local taxes (SALT deduction) and makes the adoption tax credit refundable. The bill allows parents to use a portion of their Social Security benefits for up to three months of paid parental leave after the birth or adoption of a child. Additionally, the bill requires Supplemental Nutrition Assistance Program (SNAP) recipients to cooperate with states in establishing child support orders. It also provides additional workforce training for noncustodial parents with child support obligations. States must establish requirements for the biological father of a child to pay, at the mother's request, at least 50% of reasonable out-of-pocket medical expenses associated with the mother's pregnancy and delivery. The bill requires institutions of higher education to provide students with certain information about the resources and services (excluding abortion services) available to pregnant students. Additionally, the bill provides grants for community-based maternal mentoring programs and for pregnancy resource centers that do not provide abortions; requires the Department of Health and Human Services to publish a website with specified pregnancy-related information; and extends from one to two years the postpartum benefit eligibility period under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

US HB3662

Related Adoption Tax Credit Refundability Act of 2023

US HB4789

Related Providing for Life Act of 2023

Similar Bills

No similar bills found.