Section 1 Short title
This Act may be cited as the “Adoption Tax Credit Refundability Act of 2023”.
Adoption Tax Credit Refundability Act of 2023
A BILL
To amend the Internal Revenue Code of 1986 to provide for a refundable adoption tax credit.
Sec. 2 Refundable adoption tax credit
Credit made refundable—
Credit moved to subpart relating to refundable credits— The Internal Revenue Code of 1986 is amended—
by redesignating section 23 as section 36C, and
by moving section 36C (as so redesignated) from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1.
Conforming Amendments—
Section 25(e)(1)(C) of such Code is amended by striking “sections 23 and 25D” and inserting “section 25D”.
Section 36C of such Code, as so redesignated, is amended—
in subsection (b)(2)(A), by striking “(determined without regard to subsection (c))”,
by striking subsection (c), and
by redesignating subsections (d) through (i) as subsections (c) through (h), respectively.
Section 137 of such Code is amended—
in subsection (d), by striking “section 23(d)” and inserting “section 36C(c)”, and
in subsection (e), by striking “subsections (e), (f), and (g) of section 23” and inserting “subsections (d), (e), and (f) of section 36C”.
Section 1016(a)(26) of such Code is amended by striking “23(g)” and inserting “36C(f)”.
Section 6211(b)(4)(A) of such Code is amended by inserting “36C,” after “36B,”.
The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 23.
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting “36C,” after “36B,”.
Paragraph (33) of section 471(a) of the Social Security Act (42 U.S.C. 671(a)) is amended by striking “section 23” and inserting “section 36C”.
The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:
Third-Party affidavits— Section 36C(h) of the Internal Revenue Code of 1986, as redesignated and moved by subsection (a), is amended—
by striking “such regulations” and inserting “such regulations and guidance”,
by striking “including regulations which treat” and inserting
“(1) treat”
by striking the period at the end and inserting “, and”, and
by adding at the end the following:
“(2) provide for a standardized third-party affidavit for purposes of verifying a legal adoption—
“(A) of a type with respect to which qualified adoption expenses may be paid or incurred, or
“(B) involving a child with special needs for purposes of subsection (a)(3).”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2022.
Transitional rule To treat carryforward as refundable credit— In the case of any excess described in section 23(c) of the Internal Revenue Code of 1986 with respect to any taxpayer for the taxable year which precedes the first taxable year to which the amendments made by this section apply, such excess shall be added to the credit allowable under section 36C(a) of such Code with respect to such taxpayer for such first taxable year.