The Adoption Expense Tax Credit as it currently stands is scheduled to “sunset” (as in, ride off into) beginning December 31, 2010. Actually, this credit is one of a host of tax laws brought into existence under the Bush tax cuts of 2001 which are set to expire as of December 31, 2010. So far, Congress has shown little interest in addressing this situation. Although anything is possible, it is difficult to imagine Congress failing to renew and even bolster such a socially conscious tax credit like the Adoption Expense Tax Credit.
If true - one of my wishes has come true! My guess, however, is that despite the fearful naysayer spreading this rumor is that it will be renewed and increased as it has been every year.
Part two of the rumor is that it will be replaced by H.R. 3312: “Preventing Unintended Pregnancies, Reducing the Need for Abortion and Supporting Parents Act” introduced July 23, 2009, aka Title X Family Planning Services Act of 2009. Under this proposed legislation, the tax credit would be increased to nearly $16,000 and would become refundable. Other changes might also make this credit more advantageous for adoptive parents.
HR 3312 has been referred to the following committees:
House Agriculture HUH?
The full text of the bill is available at this link. I think we should all read it and see if this something we want to support, knowing of course that it will change as it moves through committees.
You can also google the bill and see what some pundits have to say about it.