Plain English
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This bill increases the adoption tax credit to $25,000 (from $17,280 in 2025) and establishes a nonrefundable tax credit for qualified in vitro fertilization expenses. Under current law, the adoption tax credit is allowed for (1) qualified expenses incurred to adopt an eligible child up to the maximum statutory amount, or (2) the statutory maximum amount (regardless of actual expenses) if adopting an eligible child with special needs. The statutory maximum amount is $17,280 (per eligible child) in 2025, which is adjusted for inflation. Further, under current law, the adoption tax credit begins to phase out for individuals with a modified adjusted gross income exceeding $259,190 (in 2025 and adjusted for inflation), such that the tax credit completely phases out (in 2025) for individuals with a modified adjusted gross income of $299,190 or more. The bill increases the adoption tax credit statutory maximum amount to $25,000. Further, under the bill, such amount continues to be adjusted annually for inflation. Finally, under the bill, an individual is allowed a nonrefundable tax credit for expenses paid (or incurred) for medical care (e.g., treatment, insurance, and transportation) related to in vitro fertilization for the individual (or the individual’s spouse if filing a joint federal income tax return). However, an individual may not claim the in vitro fertilization tax credit and other allowed tax deductions or credits (e.g., medical expense tax deduction) for the same expen
Market Impact Map
Action Timeline
2025-02-18
Referred to the House Committee on Ways and Means.
2025-02-18
Introduced in House
2025-02-18
Introduced in House
Full Bill Text
119 HR 1427 IH: To amend the Internal Revenue Code of 1986 to increase the amount of the adoption credit and to establish the in vitro fertilization expenses credit. U.S. House of Representatives 2025-02-18 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 1427 IN THE HOUSE OF REPRESENTATIVES February 18, 2025 Mr. Mackenzie introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the amount of the adoption credit and to establish the in vitro fertilization expenses credit. 1. Increase in adoption credit amount (a) In general (1) Increase in credit for adoption of child with special needs Section 23(a)(3) of the Internal Revenue Code of 1986 is amended— (A) in the heading, by striking $10,000 and inserting $25,000 , and (B) by striking $10,000 and inserting $25,000 . (2) Increase in maximum credit amount Section 23(b)(1) of such Code is amended by striking $10,000 and inserting $25,000 . (b) Change in base year for inflation adjustment Section 23(h) of such Code is amended to read as follows: (h) Adjustments for inflation (1) In general In the case of a taxable year beginning after December 31, 2025, each of the dollar amounts in subsection (a)(3) and paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) The cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2024 for calendar year 2016 in subparagraph (A)(ii) thereof. (2) Rounding If any amount as increased under paragraph (1)is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10. (3) Special rule for income limitation In the case of the dollar amount in subsection (b)(2)(A)(i), paragraph (1) shall be applied— (A) by substituting 2002 for 2024 in the matter preceding subparagraph (A), and (B) by substituting calendar year 2001 for calendar year 2023 in subparagraph (B) thereof. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2024. 2. In vitro fertilization expenses credit (a) In general Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section: 25F. In vitro fertilization expenses (a) Credit allowed In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified in vitro fertilization expenses paid or incurred by the taxpayer during the taxable year. (b) Qualified in vitro fertilization expenses For purposes of this section, the term qualified in vitro fertilization expenses means amounts paid or incurred for medical care (as defined in section 213(d)) relating to in vitro fertilization for the taxpayer (or the taxpayer’s spouse, in the case of a joint return). (c) No double benefit Any qualified in vitro fertilization expense which would (but for this subsection) be taken into account for purposes of any deduction (or any credit other than the credit allowed under this section) shall be reduced by the amount of the credit allowed under subsection (a) with respect to such expense. . (b) Clerical amendment The table of sections for Part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25E the following new item: Sec. 25F. In vitro fertilization expenses. . (c) Effective date The amendments made by this shall apply to amounts paid or incurred after the date of the enactment of this section.
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