Unfortunately, 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.
In fact, a proposal that should make its way into Congress for a vote is a law with a long, but literal name: the “Preventing Unintended Pregnancies, Reducing the Need for Abortion and Supporting Parents Act.” 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.
Stay tuned for additional updates.
By Clint Costa for Grown in My Heart