MLJ Adoptions has joined the Save the Adoption Tax Credit Working Group, a national collaboration of individuals and organizations from across the country who are united in the effort to advocate for the adoption tax credit.
The adoption tax credit helps tens of thousands of children every year find a forever family. By returning some of the adoption expenses families pay, it makes adoptions more affordable thereby providing a greater number of children with the opportunity to be a part of a family and ensuring that families at all income levels can offer children a loving, permanent home
Here are some FAQ’s about the Adoption Tax Credit as compiled by the Adoption Tax Credit Working Group.
What happens if no action is taken?
In 2012, the adoption tax credit is not refundable, so many lower and moderate income families will not benefit or will receive only a portion of their credit.
After 2012, the credit will apply only to special needs adoptions where the family has qualified adoption expenses
. Most of the adoptions from foster care do not have any upfront expenses, so very few families who adopt from foster care will receive any refund. Those adopting internationally or privately will not receive a benefit at all.
Are there any bills in Congress that the Adoption Tax Credit Working Group (ATCWG) wholeheartedly supports?
Yes, there is H.R. 4373, the Making Adoption Affordable Act, introduced by Congressman Bruce Braley of Iowa. We suggest that everyone contact their Representative in the U.S. House of Representatives and urge that the Representative co-sponsor H.R. 4373. There is no companion bill in the Senate as of May 29, but as soon as one is introduced, we will let you know so you can ask your two U.S. Senators to support it.
What are the provisions of H.R. 4373?
It allows a credit against adoption expenses and makes it permanent law.
It makes the credit 100 percent refundable.
It sets the maximum credit at $13,360 (indexed for inflation).
It allows the full credit for adoptions of children who have been determined to have special needs, regardless of expenses.
And, it allows all types of adoptions, except step-parent adoptions, to qualify for the credit.
How do I find out who my Representative is?
Your Representative will be listed in the Government section of your local phone book or go to http://www.house.gov/
and enter your zip code in the box on the right side that is labeled “Find your Representative.”
Are there any other bills in Congress dealing with the adoption tax credit and what do you think about them?
Yes. There are, at least, four bills that have been introduced this Congress that would make the nonrefundable adoption tax credit permanent. But only two of those bills do so by focusing exclusively on the adoption tax credit and neither of them restores the credit’s refundability.
We appreciate the sponsors and cosponsors of all of the bills for their support of adoption and the adoption tax credit
, and we would be supporting their bills actively if they included refundability. But refundability is so important that we are focusing our efforts on H.R. 4373 and any similar Senate bill when it is introduced. Without refundability, many, many adoptive families will not benefit.
Does President Obama support the adoption tax credit? Does he support making it refundable?
Yes, to both questions. The refundable, permanent, inclusive, flat for special needs tax credit was included in the federal budget for 2013 that the President sent to the Congress in February 2012.
What can individuals do to show their support for the adoption tax credit?
The best thing for those who support making the adoption tax credit permanent, with refundability, is to write, email, phone, or meet with their Congressional delegation to let their members of Congress know that they want them to cosponsor H.R. 4373 or, for Senators, a Senate companion bill when it’s introduced. Go to www.house.gov
and to www.senate.gov
to find your member of Congress and your Senators and how to contact them.
Personal stories of how the adoption tax credit has helped or will help their constituents become parents are the best form of lobbying on this issue and the more members of Congress who hear from their constituents about the need to continue the adoption tax credit the better.
MLJ Adoptions strongly believes that the cost of adoption should not be a barrier to adoption. The Adoption Tax Credit is a critical resource for adoptive parents. Contact your representative today and ask them to support H.R. 4373.