Good news for adoptive families from the health care bill signed into law. The adoption tax credit has been extended until the end of 2011 and increased from $12,170 to $13,170 for adoptions occurring after January 1, 2010 (it’s retroactive). The credit is also now refundable.
You can read the bills text on page 903 of 906 here.
USA Today’s brief analysis:
“Taxpayers who adopt children: Effective in 2010, the bill makes the adoption credit refundable, increases the credit by $1,000 and extends the increased adoption credit through 2011.”
This was included - amazingly - in the health care bill as part of the Bob Casey from PA amendment.
He's a pro-life Democrat.
It also included money for Pregnancy Assistance Funding for expectant and new mothers - albeit a lot less than committed to the tax credit for adoption, of course.
Additionally, Senator Casey was successful in adding two significant provisions to the Senate language that will help reduce the number of abortions and support adoption:
• Creation of a Pregnancy Assistance Fund that will be initially funded at $250 million over 10 years, providing states with funding to help pregnant and parenting teens and college students with assistance for such basic necessities as child care, housing, education and more. Funding will also assist pregnant victims of domestic violence, stalking, sexual assault and other sexual crimes;
• The Adoption Tax Credit is increased by $1,000 for the next two years and is refundable. This increases federal support for adoption by $1.2 billion over the next two years.
For more on the Adoption Tax Credit see this blog post.