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Bill
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To amend the Internal Revenue Code of 1986 to increase the amount of the adoption credit and to establish the in vitro fertilization expenses credit.

H.R. 1427 · 119th Congress · Feb 18, 2025 · Lineage

A BILL

Section 1 Increase in adoption credit amount

(a)
In general—
(1)
Increase in credit for adoption of child with special needs— Section 23(a)(3) of the Internal Revenue Code of 1986 is amended—
(A)
in the heading, by striking “$10,000” and inserting “$25,000”, and
(B)
by striking “$10,000” and inserting “$25,000”.
(2)
Increase in maximum credit amount— Section 23(b)(1) of such Code is amended by striking “$10,000” and inserting “$25,000”.
(b)
Change in base year for inflation adjustment— Section 23(h) of such Code is amended to read as follows:

“(h) Adjustments for inflation

“(1) In general—In the case of a taxable year beginning after December 31, 2025, each of the dollar amounts in subsection (a)(3) and paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an amount equal to—

“(A) such dollar amount, multiplied by

“(B) The cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2024” for “calendar year 2016” in subparagraph (A)(ii) thereof.

“(2) Rounding—If any amount as increased under paragraph (1)is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.

“(3) Special rule for income limitation—In the case of the dollar amount in subsection (b)(2)(A)(i), paragraph (1) shall be applied—

“(A) by substituting “2002” for “2024” in the matter preceding subparagraph (A), and

“(B) by substituting “calendar year 2001” for “calendar year 2023” in subparagraph (B) thereof.”

(c)
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2024.

Sec. 2 In vitro fertilization expenses credit

(a)
In general— Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section:

“25F. In vitro fertilization expenses

“(a) Credit allowed—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified in vitro fertilization expenses paid or incurred by the taxpayer during the taxable year.

“(b) Qualified in vitro fertilization expenses—For purposes of this section, the term “qualified in vitro fertilization expenses” means amounts paid or incurred for medical care (as defined in section 213(d)) relating to in vitro fertilization for the taxpayer (or the taxpayer’s spouse, in the case of a joint return).

“(c) No double benefit—Any qualified in vitro fertilization expense which would (but for this subsection) be taken into account for purposes of any deduction (or any credit other than the credit allowed under this section) shall be reduced by the amount of the credit allowed under subsection (a) with respect to such expense.”

(b)
Clerical amendment— The table of sections for Part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25E the following new item:
(c)
Effective date— The amendments made by this shall apply to amounts paid or incurred after the date of the enactment of this section.