Adoption Tax Credit Extended

As of Friday, December 17, 2010 the adoption tax credit has been extended through December 31, 2012.  There remains some confusion regarding the effect of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 which President Obama signed this past Friday.  To provide some clarity, we provide the following which represents Joint Council’s understanding of the laws impact.

• The adoption tax credit has been extended through December 31, 2012.
• The refundability of the adoption tax credit will remain in effect for 2011.
• The refundability expires on December 31, 2011 and will not be available for 2012.

 The full text of the law can be found in Section 101 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (pdf).  We extend our appreciation to the American Academy of Adoption Attorneys for their assistance in providing this info rmation.