Adoption Tax Credit Refundability Act of 2025

HR 2833 makes the federal adoption tax credit refundable, meaning qualifying adoptive parents can receive cash payments even if they owe no federal income tax. This directly affects low- and middle-income adoptive families who previously could only reduce their tax bill with the credit but couldn’t get cash back. The bill moves the credit from a non-refundable to a refundable status in the tax code and adds standardized verification forms for adoptions. It takes effect for tax years beginning after December 31, 2025.