We praise God that the American Taxpayer Relief Act of 2012 (the bill to avert the fiscal cliff) made the adoption tax credit permanent!
Our friends at the Congressional Coalition on Adoption Institute posted this today:The bill permanently extends the increased adoption tax credit and the adoption assistance programs exclusion. Taxpayers that adopt children can receive a tax credit for qualified adoption expenses. A taxpayer may also exclude from income adoption expenses paid by an employer. The Economic Growth and Tax Relief Reconciliation Act of 2001 increased the credit from $5,000 ($6,000 for a special needs child) to $10,000, and provided a $10,000 income exclusion for employer-assistance programs. The Patient Protection and Affordable Care Act of 2010 extended these benefits to 2011 and made the credit refundable. The bill extends for taxable years beginning after December 31, 2012, the increased adoption credit amount and the exclusion for employer-assistance programs as enacted in EGTRRA.There are still questions about the credit becoming refundable and some have encouraged people to contact congress to push for this.