I 

117TH CONGRESS 

1ST SESSION H. R. 3031 

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

adoption tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2021 

Mr. DANNY K. DAVIS of Illinois (for himself, Mrs. WALORSKI, Ms. BASS, and 

Mr. BACON) introduced the following bill; which was referred to the Committee on Ways and Means 

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 2021’’. 

6 SEC. 2. REFUNDABLE ADOPTION TAX CREDIT. 

7 (a) CREDIT MADE REFUNDABLE.— 

8 (1) CREDIT MOVED TO SUBPART RELATING TO

9 REFUNDABLE CREDITS.—The Internal Revenue 

10 Code of 1986 is amended— 


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1 (A) by redesignating section 23 as section 

2 36C, and 

3 (B) by moving section 36C (as so redesig4 nated) from subpart A of part IV of subchapter 

5 A of chapter 1 to the location immediately be6 fore section 37 in subpart C of part IV of sub7 chapter A of chapter 1. 

8 (2) CONFORMING AMENDMENTS.— 

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

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

11 and inserting ‘‘section 25D’’. 

12 (B) Section 36C of such Code, as so redes13 ignated, is amended— 

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

15 ‘‘(determined without regard to subsection 

16 (c))’’, 

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

18 (iii) by redesignating subsections (d) 

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

20 respectively. 

21 (C) Section 137 of such Code is amend22 ed— 

23 (i) in subsection (d), by striking ‘‘sec24 tion 23(d)’’ and inserting ‘‘section 

25 36C(c)’’, and 


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1 (ii) in subsection (e), by striking ‘‘sub2 sections (e), (f), and (g) of section 23’’ and 

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

4 section 36C’’. 

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

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

7 ‘‘36C(f)’’. 

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

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

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

11 part IV of subchapter A of chapter 1 of such 

12 Code is amended by striking the item relating 

13 to section 23. 

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

15 title 31, United States Code, is amended by in16 serting ‘‘36C,’’ after ‘‘36B,’’. 

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

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

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

20 ‘‘section 36C’’. 

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

22 part IV of subchapter A of chapter 1 of the In23 ternal Revenue Code of 1986 is amended by in24 serting after the item relating to section 36B 

25 the following new item: 

‘‘Sec. 36C. Adoption expenses.’’. 


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

2 the Internal Revenue Code of 1986, as redesignated and 

3 moved by subsection (a), is amended— 

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

5 ‘‘such regulations and guidance’’, 

6 (2) by striking ‘‘including regulations which 

7 treat’’ and inserting ‘‘including regulations and 

8 guidance which— 

9 ‘‘(1) treat’’, 

10 (3) by striking the period at the end and insert11 ing ‘‘, and’’, and 

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

13 ‘‘(2) provide for a standardized third-party affi14 davit for purposes of verifying a legal adoption— 

15 ‘‘(A) of a type with respect to which quali16 fied adoption expenses may be paid or incurred, 

17 or 

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

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

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2020. 

23 (d) TRANSITIONAL RULE TO TREAT CARRYFORWARD

24 AS REFUNDABLE CREDIT.—In the case of any excess de25 scribed in section 23(c) of the Internal Revenue Code of 


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1 1986 with respect to any taxpayer for the taxable year 

2 which precedes the first taxable year to which the amend3 ments made by this section apply, such excess shall be 

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

5 Code with respect to such taxpayer for such first taxable 

6 year. 

Æ 


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