Adoption Tax Credit Refundability Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 3662 To amend the Internal Revenue Code of 1986 to provide for a refundable adoption tax credit. IN THE HOUSE OF REPRESENTATIVES MAY 25, 2023 Mr. DAVIS of Illinois (for himself, Mr. MOORE of Utah, Ms. MOORE of Wis- consin, Mr. FEENSTRA, Mr. BACON, Ms. KAMLAGER-DOVE, and Ms. SCANLON) introduced the following bill; which was referred to the Com- mittee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide for a refundable adoption tax credit. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Adoption Tax Credit 4 Refundability Act of 2023’’. 5 SEC. 2. REFUNDABLE ADOPTION TAX CREDIT. 6 (a) CREDIT MADE REFUNDABLE.— 7 VerDate Sep 11 2014 02:39 Jun 17, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.IH H3662 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3662 IH (1) CREDIT MOVED TO SUBPART RELATING TO 1 REFUNDABLE CREDITS.—The Internal Revenue 2 Code of 1986 is amended— 3 (A) by redesignating section 23 as section 4 36C, and 5 (B) by moving section 36C (as so redesig- 6 nated) from subpart A of part IV of subchapter 7 A of chapter 1 to the location immediately be- 8 fore section 37 in subpart C of part IV of sub- 9 chapter A of chapter 1. 10 (2) CONFORMING AMENDMENTS.— 11 (A) Section 25(e)(1)(C) of such Code is 12 amended by striking ‘‘sections 23 and 25D’’ 13 and inserting ‘‘section 25D’’. 14 (B) Section 36C of such Code, as so redes- 15 ignated, is amended— 16 (i) in subsection (b)(2)(A), by striking 17 ‘‘(determined without regard to subsection 18 (c))’’, 19 (ii) by striking subsection (c), and 20 (iii) by redesignating subsections (d) 21 through (i) as subsections (c) through (h), 22 respectively. 23 (C) Section 137 of such Code is amend- 24 ed— 25 VerDate Sep 11 2014 02:39 Jun 17, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.IH H3662 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3662 IH (i) in subsection (d), by striking ‘‘sec- 1 tion 23(d)’’ and inserting ‘‘section 2 36C(c)’’, and 3 (ii) in subsection (e), by striking ‘‘sub- 4 sections (e), (f), and (g) of section 23’’ and 5 inserting ‘‘subsections (d), (e), and (f) of 6 section 36C’’. 7 (D) Section 1016(a)(26) of such Code is 8 amended by striking ‘‘23(g)’’ and inserting 9 ‘‘36C(f)’’. 10 (E) Section 6211(b)(4)(A) of such Code is 11 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 12 (F) The table of sections for subpart A of 13 part IV of subchapter A of chapter 1 of such 14 Code is amended by striking the item relating 15 to section 23. 16 (G) Paragraph (2) of section 1324(b) of 17 title 31, United States Code, is amended by in- 18 serting ‘‘36C,’’ after ‘‘36B,’’. 19 (H) Paragraph (33) of section 471(a) of 20 the Social Security Act (42 U.S.C. 671(a)) is 21 amended by striking ‘‘section 23’’ and inserting 22 ‘‘section 36C’’. 23 (I) The table of sections for subpart C of 24 part IV of subchapter A of chapter 1 of the In- 25 VerDate Sep 11 2014 02:39 Jun 17, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.IH H3662 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3662 IH ternal Revenue Code of 1986 is amended by in- 1 serting after the item relating to section 36B 2 the following new item: 3 ‘‘Sec. 36C. Adoption expenses.’’. (b) THIRD-PARTY AFFIDAVITS.—Section 36C(h) of 4 the Internal Revenue Code of 1986, as redesignated and 5 moved by subsection (a), is amended— 6 (1) by striking ‘‘such regulations’’ and inserting 7 ‘‘such regulations and guidance’’, 8 (2) by striking ‘‘including regulations which 9 treat’’ and inserting ‘‘including regulations and 10 guidance which— 11 ‘‘(1) treat’’, 12 (3) by striking the period at the end and insert- 13 ing ‘‘, and’’, and 14 (4) by adding at the end the following: 15 ‘‘(2) provide for a standardized third-party affi- 16 davit for purposes of verifying a legal adoption— 17 ‘‘(A) of a type with respect to which quali- 18 fied adoption expenses may be paid or incurred, 19 or 20 ‘‘(B) involving a child with special needs 21 for purposes of subsection (a)(3).’’. 22 (c) EFFECTIVE DATE.—The amendments made by 23 this section shall apply to taxable years beginning after 24 December 31, 2023. 25 VerDate Sep 11 2014 02:39 Jun 17, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.IH H3662 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3662 IH (d) TRANSITIONAL RULE TO TREAT CARRYFORWARD 1 AS REFUNDABLE CREDIT.—In the case of any excess de- 2 scribed in section 23(c) of the Internal Revenue Code of 3 1986 with respect to any taxpayer for the taxable year 4 which precedes the first taxable year to which the amend- 5 ments made by this section apply, such excess shall be 6 added to the credit allowable under section 36C(a) of such 7 Code with respect to such taxpayer for such first taxable 8 year. 9 Æ VerDate Sep 11 2014 02:39 Jun 17, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H3662.IH H3662 kjohnson on DSK79L0C42PROD with BILLS