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To amend the Internal Revenue Code of 1986 to increase the amount of the adoption credit and to establish the in vitro fertilization expenses credit.
3/13/2025, 9:18 AM
Summary of Bill HR 1427
The adoption credit is a tax credit that helps offset the costs associated with adopting a child. This bill proposes to increase the amount of the adoption credit, making it more accessible and affordable for families looking to adopt. This increase in the adoption credit could potentially make it easier for more families to provide loving homes for children in need of adoption.
In addition to the adoption credit, this bill also introduces a new tax credit for in vitro fertilization expenses. In vitro fertilization is a medical procedure that helps individuals or couples struggling with infertility to conceive a child. The proposed tax credit for in vitro fertilization expenses aims to provide financial assistance to those undergoing this costly and often emotionally challenging process. Overall, Bill 119 HR 1427 seeks to support families looking to expand their families through adoption or in vitro fertilization by providing them with financial relief through tax credits. This legislation could potentially make these family-building options more accessible and affordable for individuals and couples across the United States.
Congressional Summary of HR 1427
This bill increases the adoption tax credit to $25,000 (from $17,280 in 2025) and establishes a nonrefundable tax credit for qualified in vitro fertilization expenses.
Under current law, the adoption tax credit is allowed for (1) qualified expenses incurred to adopt an eligible child up to the maximum statutory amount, or (2) the statutory maximum amount (regardless of actual expenses) if adopting an eligible child with special needs. The statutory maximum amount is $17,280 (per eligible child) in 2025, which is adjusted for inflation. Further, under current law, the adoption tax credit begins to phase out for individuals with a modified adjusted gross income exceeding $259,190 (in 2025 and adjusted for inflation), such that the tax credit completely phases out (in 2025) for individuals with a modified adjusted gross income of $299,190 or more.
The bill increases the adoption tax credit statutory maximum amount to $25,000. Further, under the bill, such amount continues to be adjusted annually for inflation.
Finally, under the bill, an individual is allowed a nonrefundable tax credit for expenses paid (or incurred) for medical care (e.g., treatment, insurance, and transportation) related to in vitro fertilization for the individual (or the individual’s spouse if filing a joint federal income tax return). However, an individual may not claim the in vitro fertilization tax credit and other allowed tax deductions or credits (e.g., medical expense tax deduction) for the same expenses.
