H.R. 1427: 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.

This bill proposes changes to the Internal Revenue Code of 1986 regarding financial assistance for families wishing to adopt children and for individuals undergoing in vitro fertilization (IVF).

Increase in Adoption Credit

The bill increases the following related to the adoption credit:

• Increased Credit Amount: It raises the maximum adoption credit for adopting a child with special needs from $10,000 to $25,000. This change will help families cover the expenses involved in the adoption process.
• Adjustments for Inflation: The bill also changes the base year for adjusting the adoption credit for inflation. Starting from taxable years after December 31, 2025, the credit amount will be adjusted annually based on the cost of living, ensuring it remains relevant to current economic conditions.

These changes aim to provide greater financial support to families looking to adopt and encourage more people to consider adoption.

In Vitro Fertilization Expenses Credit

The bill introduces a new tax credit specifically for expenses incurred during in vitro fertilization.

• Credit Allowed: Individuals will be able to claim a credit for qualified in vitro fertilization expenses incurred during the taxable year. This includes costs related to medical care directly connected to the IVF process.
• Definition of Qualified Expenses: The term “qualified in vitro fertilization expenses” refers to amounts deemed necessary for medical care associated with IVF treatment for the taxpayer or their spouse (for those filing jointly).
• No Double Benefit: If an individual claims this credit, any expenses that would normally qualify for other deductions or credits will be reduced by the amount of this IVF credit to prevent double benefits.

This provision aims to alleviate some of the financial burdens faced by individuals or couples seeking IVF treatment by providing a direct tax benefit.

Effective Dates

• The modifications to the adoption credit are effective for taxable years beginning after December 31, 2024.
• The IVF credit will apply to costs incurred after the date of the bill's enactment.

Relevant Companies

None found.