I 
118TH CONGRESS 
1ST SESSION H. R. 3662 
To amend the Internal Revenue Code of 1986 to provide for a refundable 
adoption tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 25, 2023 
Mr. DAVIS of Illinois (for himself, Mr. MOORE of Utah, Ms. MOORE of Wis-
consin, Mr. FEENSTRA, Mr. BACON, Ms. KAMLAGER-DOVE, and Ms. 
SCANLON) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for a refundable adoption tax credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Adoption Tax Credit 
Refundability Act of 2023’’. 
SEC. 2. REFUNDABLE ADOPTION TAX CREDIT. 
(a) CREDIT MADE REFUNDABLE.— 
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(1) CREDIT MOVED TO SUBPART RELATING TO 
REFUNDABLE
CREDITS.—The 
Internal 
Revenue 
Code of 1986 is amended— 
(A) by redesignating section 23 as section 
36C, and 
(B) by moving section 36C (as so redesig-
nated) from subpart A of part IV of subchapter 
A of chapter 1 to the location immediately be-
fore section 37 in subpart C of part IV of sub-
chapter A of chapter 1. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 25(e)(1)(C) of such Code is 
amended by striking ‘‘sections 23 and 25D’’ 
and inserting ‘‘section 25D’’. 
(B) Section 36C of such Code, as so redes-
ignated, is amended— 
(i) in subsection (b)(2)(A), by striking 
‘‘(determined without regard to subsection 
(c))’’, 
(ii) by striking subsection (c), and 
(iii) by redesignating subsections (d) 
through (i) as subsections (c) through (h), 
respectively. 
(C) Section 137 of such Code is amend-
ed— 
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(i) in subsection (d), by striking ‘‘sec-
tion 
23(d)’’ 
and 
inserting 
‘‘section 
36C(c)’’, and 
(ii) in subsection (e), by striking ‘‘sub-
sections (e), (f), and (g) of section 23’’ and 
inserting ‘‘subsections (d), (e), and (f) of 
section 36C’’. 
(D) Section 1016(a)(26) of such Code is 
amended by striking ‘‘23(g)’’ and inserting 
‘‘36C(f)’’. 
(E) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(F) 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. 
(G) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘36C,’’ after ‘‘36B,’’. 
(H) 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’’. 
(I) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the In-
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ternal Revenue Code of 1986 is amended by in-
serting after the item relating to section 36B 
the following new item: 
‘‘Sec. 36C. Adoption expenses.’’. 
(b) THIRD-PARTY AFFIDAVITS.—Section 36C(h) of 
the Internal Revenue Code of 1986, as redesignated and 
moved by subsection (a), is amended— 
(1) by striking ‘‘such regulations’’ and inserting 
‘‘such regulations and guidance’’, 
(2) by striking ‘‘including regulations which 
treat’’ and inserting ‘‘including regulations and 
guidance which— 
‘‘(1) treat’’, 
(3) by striking the period at the end and insert-
ing ‘‘, and’’, and 
(4) by adding at the end the following: 
‘‘(2) provide for a standardized third-party affi-
davit for purposes of verifying a legal adoption— 
‘‘(A) of a type with respect to which quali-
fied adoption expenses may be paid or incurred, 
or 
‘‘(B) involving a child with special needs 
for purposes of subsection (a)(3).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2023. 
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(d) TRANSITIONAL RULE TO TREAT CARRYFORWARD 
AS REFUNDABLE CREDIT.—In the case of any excess de-
scribed 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 amend-
ments 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. 
Æ 
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