Bipartisan Walorski, Bacon bill makes Adoption Tax Credit permanent

U.S. Reps. Jackie Walorski (R-IN) and Don Bacon (R-NE) on May 7 introduced bipartisan legislation that would make the current Adoption Tax Credit permanently refundable, removing income as a barrier to adoption for more low-income families.

“For years, income has become a roadblock for many families wishing to adopt,” Rep. Bacon said. “As co-chair of the Foster Youth Caucus and an adoptive parent myself, I understand the need to remove this barrier by offsetting these burdensome costs.” 

“This bipartisan bill will restore refundability of the Adoption Tax Credit and help more hardworking families welcome a child into a loving, permanent home,” said Rep. Walorski.

The Adoption Tax Credit Refundability Act of 2021, H.R. 3031, which Reps. Bacon and Walorski cosponsored with bill sponsor U.S. Rep. Danny Davis (D-IL), would amend the Adoption Tax Credit, which helps families offset some of the costs of adoption, especially for children with special needs, according to a bill summary provided by the lawmakers. 

Currently, the tax credit disadvantages low- and middle-income families, in particular families with annual incomes between $30,000 to $50,000, an inequity made worse when roughly half of youth adopted from foster care live in families with incomes at or below 200 percent of the federal poverty level, according to the summary.

“I thank my co-leads for their partnership on this common-sense, bipartisan legislation that is desperately needed today,” Rep. Bacon said.

H.R. 3031 is supported by the 83 members of the Adoption Tax Credit Working Group, including state and national leaders on child welfare, such as the Child Welfare League of America, the Dave Thomas Foundation for Adoption, Lutheran Services in America, the National Council for Adoption, the North American Council on Adoptable Children, and Voice for Adoption.

“Adoption is truly a blessing for both children and families,” Rep. Walorski said. “Breaking down barriers to adoption — especially for lower- and middle-income Americans — is essential to giving foster youth and other vulnerable children a better chance to thrive.” 

H.R. 3031 is the companion bill to S. 1156, which was introduced on April 15 by U.S. Sens. Bob Casey (D-PA) and Roy Blunt (R-MO) in the U.S. Senate.