WASHINGTON, D.C. – Congressman Robert Aderholt, Co-Chair of the Congressional Adoption Caucus and Chairman of the House VAT (Values Action Team), announces a victory for adoptive families. The Internal Revenue Service (IRS) updated its interpretation of the partially refundable adoption tax credit included in the Working Families Tax Cuts.

Thanks to the Working Families Tax Cuts, more money is going back into the pockets of American workers, families, seniors and small businesses. The Adoption Tax Credit is a part of Republican’s efforts to lower the cost of raising a family and ensure a more prosperous future for our children.

“One of our top priorities in the Working Family Tax Cuts was providing families with a refundable Adoption Tax Credit,” said Congressman Aderholt. “I’m pleased to report that the IRS has announced for tax year 2025, carry forward amounts of the adoption tax credit from prior years are refundable for up to $5,000 per qualifying child.”

The previous interpretation by the IRS prevented adoptive families who filed taxes from 2020-2024 from accessing part of the credit. Now, adoptive families with pre-2025 carry forwards will be eligible for the $5,000 in refundable tax credits for 2025.

“As Adoption Caucus Chairman and a longtime advocate for children and families, this is personal,” Aderholt said. “Making adoption more affordable is both morally right and fiscally responsible. Refundability means more children can be welcomed into permanent homes, and more families can say yes to adoption without being held back by financial constraints. I’m proud to see Republicans put families first,” Aderholt added.

These are significant savings for families hoping to give a child a permanent home.