Adoption Tax Credit Refundability Act of 2023

S 2895, the Adoption Tax Credit Refundability Act of 2023, makes the federal adoption tax credit refundable. This change directly affects low-income adoptive parents who previously could not claim the credit if they owed no federal income tax. The bill restructures the credit in the tax code to allow families to receive it as a direct payment, even if their tax liability was zero. It applies to taxable years beginning after December 31, 2022, and includes a transitional rule for credits carried forward from prior years. The law does not alter the credit amount or eligibility criteria, only its refundability.