The Adoption Tax Credit was expanded under President Bush in 2001 from $5,000 to $10,000 and set to grow each year based on inflation. It is currently $12,150. However, unless Congress acts to extend it, the Credit will drop to only $5,000 at the end of 2010.
Two bills now in Congress recently would preserve the Adoption Tax Credit, including the "Adoption Tax Relief Guarantee Act" (HR213) introduced last week. This bill would also add an additional boost for domestic adoptions by reducing the wait time families currently must wait before receiving their tax credit.
We'll be keeping a close eye on developments on the Tax Credit, which provides major help to families as they shoulder costs of adoption. If you would like to track this bill yourself, visit http://www.govtrack.us%3econgress%3elegislation/.