Simon Cox Blog: House, Senate Move to Save Adoption Tax Credit

Thursday 9 November 2017

House, Senate Move to Save Adoption Tax Credit

Republicans heed evangelical outcry on tax reform.

The adoption tax credit that was missing in the House Republican tax reform proposal will show up today in the Senate’s, The Washington Post has reported.

At the same time, the House Ways and Means Committee will soon vote to add the credit back in.

“NEW: House GOP changes in tax reform bill include restoration of adoption tax credit,” tweeted political reporter Jamie Dupree.

Ethics and Religious Liberty Commission president Russell Moore said he was “very thankful.”

“This is not just some other policy but a lifeline to children in need and families trying to welcome them into their homes,” he told CT. “It is in the national interest to see to it the vulnerable children are protected, not exiled in a system. I'm glad to see that interest upheld rather than torpedoed in the Senate's proposal."

Born in 1981, the adoption tax credit began as a $1,500 tax deduction applicable only to children with special needs. In 1997, the benefit was changed to a tax credit that would adjust for inflation. Last year, adopting households could receive up to $13,570 as reimbursement for costs such as adoption and attorney fees, court costs, and travel expenses—provided their annual income was $243,540 or less.

Last week, in a sweeping tax reform proposal—which includes lowering taxes, increasing the child tax credit, and introducing a family tax credit—House Republicans cut the adoption tax credit. Today, Senate Republicans answered with their own tax overhaul, which would keep the mortgage interest deduction, eliminate the aiblity to deduct state and local taxes—and keep the adoption tax credit.

The House and Senate bills have to match before they can get sent to ...