II 

118TH CONGRESS 

1ST SESSION S. 2895 

To amend the Internal Revenue Code of 1986 to provide for a refundable 

adoption tax credit. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 21, 2023 

Mr. CASEY (for himself, Mr. CRAMER, Mr. BROWN, Mrs. CAPITO, Ms. 

DUCKWORTH, Mrs. FEINSTEIN, Mr. FETTERMAN, Mr. HAWLEY, Mrs. 

HYDE-SMITH, Mr. KELLY, Ms. KLOBUCHAR, Mr. LANKFORD, Mr. 

LUJA ́N, Mr. RISCH, Mr. ROUNDS, Mr. RUBIO, Mr. SCOTT of South Carolina, Ms. STABENOW, Mr. VAN HOLLEN, Mr. WARNER, Ms. WARREN, 

Mr. WHITEHOUSE, Mr. WICKER, and Mr. WYDEN) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for a refundable adoption tax credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Adoption Tax Credit 

5 Refundability Act of 2023’’. 

6 SEC. 2. REFUNDABLE ADOPTION TAX CREDIT. 

7 (a) CREDIT MADE REFUNDABLE.— 


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•S 2895 IS

1 (1) CREDIT MOVED TO SUBPART RELATING TO

2 REFUNDABLE CREDITS.—The Internal Revenue 

3 Code of 1986 is amended— 

4 (A) by redesignating section 23 as section 

5 36C, and 

6 (B) by moving section 36C (as so redesig7 nated) from subpart A of part IV of subchapter 

8 A of chapter 1 to the location immediately be9 fore section 37 in subpart C of part IV of sub10 chapter A of chapter 1. 

11 (2) CONFORMING AMENDMENTS.— 

12 (A) Section 25(e)(1)(C) of such Code is 

13 amended by striking ‘‘sections 23 and 25D’’ 

14 and inserting ‘‘section 25D’’. 

15 (B) Section 36C of such Code, as so redes16 ignated, is amended— 

17 (i) in subsection (b)(2)(A), by striking 

18 ‘‘(determined without regard to subsection 

19 (c))’’, 

20 (ii) by striking subsection (c), and 

21 (iii) by redesignating subsections (d) 

22 through (i) as subsections (c) through (h), 

23 respectively. 

24 (C) Section 137 of such Code is amend25 ed— 


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•S 2895 IS

1 (i) in subsection (d), by striking ‘‘sec2 tion 23(d)’’ and inserting ‘‘section 

3 36C(c)’’, and 

4 (ii) in subsection (e), by striking ‘‘sub5 sections (e), (f), and (g) of section 23’’ and 

6 inserting ‘‘subsections (d), (e), and (f) of 

7 section 36C’’. 

8 (D) Section 1016(a)(26) of such Code is 

9 amended by striking ‘‘23(g)’’ and inserting 

10 ‘‘36C(f)’’. 

11 (E) Section 6211(b)(4)(A) of such Code is 

12 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 

13 (F) The table of sections for subpart A of 

14 part IV of subchapter A of chapter 1 of such 

15 Code is amended by striking the item relating 

16 to section 23. 

17 (G) Paragraph (2) of section 1324(b) of 

18 title 31, United States Code, is amended by in19 serting ‘‘36C,’’ after ‘‘36B,’’. 

20 (H) Paragraph (33) of section 471(a) of 

21 the Social Security Act (42 U.S.C. 671(a)) is 

22 amended by striking ‘‘section 23’’ and inserting 

23 ‘‘section 36C’’. 

24 (I) The table of sections for subpart C of 

25 part IV of subchapter A of chapter 1 of the InVerDate Sep 11 2014 03:02 Sep 23, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2895.IS S2895

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•S 2895 IS

1 ternal Revenue Code of 1986 is amended by in2 serting after the item relating to section 36B 

3 the following new item: 

‘‘Sec. 36C. Adoption expenses.’’. 

4 (b) THIRD-PARTY AFFIDAVITS.—Section 36C(h) of 

5 the Internal Revenue Code of 1986, as redesignated and 

6 moved by subsection (a), is amended— 

7 (1) by striking ‘‘such regulations’’ and inserting 

8 ‘‘such regulations and guidance’’, 

9 (2) by striking ‘‘including regulations which 

10 treat’’ and inserting ‘‘including regulations and 

11 guidance which— 

12 ‘‘(1) treat’’, 

13 (3) by striking the period at the end and insert14 ing ‘‘, and’’, and 

15 (4) by adding at the end the following: 

16 ‘‘(2) provide for a standardized third-party affi17 davit for purposes of verifying a legal adoption— 

18 ‘‘(A) of a type with respect to which quali19 fied adoption expenses may be paid or incurred, 

20 or 

21 ‘‘(B) involving a child with special needs 

22 for purposes of subsection (a)(3).’’. 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to taxable years beginning after 

25 December 31, 2022. 


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•S 2895 IS

1 (d) TRANSITIONAL RULE TO TREAT CARRYFORWARD

2 AS REFUNDABLE CREDIT.—In the case of any excess de3 scribed in section 23(c) of the Internal Revenue Code of 

4 1986 with respect to any taxpayer for the taxable year 

5 which precedes the first taxable year to which the amend6 ments made by this section apply, such excess shall be 

7 added to the credit allowable under section 36C(a) of such 

8 Code with respect to such taxpayer for such first taxable 

9 year. 

Æ 


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