National Council For Adoption Applauds Congress, President for Making Adoption Tax Credit Partially Refundable

Alexandria, VA — National Council For Adoption (NCFA) applauds Congress and the president for enacting a bipartisan-supported policy provision that makes the adoption tax credit refundable up to $5,000, thereby making adoption easier for everyday families amid the rising cost of living.

“I commend Congress for finding common ground on the critical issue of adoption affordability. Finances shouldn’t get in the way of finding suitable families for kids in need. What’s more, a refundable adoption tax credit means families will have resources to draw on for critical post-adoption services, like counseling, which helps ensure adoptees thrive for the long-haul,” says Ryan Hanlon, president and CEO of National Council For Adoption.

Members of the House Ways and Means Committee, along with members of the Senate Finance Committee, championed the inclusion of the refundability language, and we are grateful for their commitment to improving the lives of children and families.

Although there has been an existing adoption tax credit, now the new policy authorizes the IRS to make this a refundable credit up to $5,000, allowing lower-income families and others with low tax liability to receive this financial support.

For example, in the 2025 tax year, the maximum allowable tax credit for an adoption is $17,280 in qualified adoption expenses per eligible child. For those whose federal tax liability falls below that threshold, the IRS would issue up to $5,000 as a refundable credit.

This partial refund is critically important, as there are about 77,000 children in foster care alone awaiting adoption and many more children institutionalized overseas, and others still being placed for private domestic adoption.

Many of these children require special care to treat complex medical conditions, and the partially refundable adoption tax credit will empower more families to overcome financial hurdles to adoption and help finance post-adoption support services.

“A refundable adoption tax credit is a life-changing prospect for families who want to embrace a child in need. It increases the number of families who can adopt, and it ensures there are resources to pull from in the inevitable event the family or child needs critical post-adoption support down the road,” says Hanlon.

The team at NCFA believes all children, everywhere, should have the chance to thrive in a permanent, safe, loving home. That requires reducing the barriers that prevent qualified families from welcoming children into their forever family. Making the adoption tax credit refundable does exactly that.

###

About National Council For Adoption

Founded in 1980, NCFA is a leading authoritative voice for adoption and is passionately committed to the belief that every child deserves to thrive in a nurturing permanent family. NCFA’s nonprofit work promotes a culture of adoption through education, research, advocacy and collaboration that aims to serve children, expectant parents, birth parents, adoptees, adoptive families, adoption professionals, policymakers, and all others impacted by adoption. adoptioncouncil.org

MEDIA CONTACT: Carolyn Bolton, 703-299-6633 cbolton@adoptioncouncil.org