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.
Summary
HB1427 would amend the Internal Revenue Code of 1986 to provide two family-related tax benefits. First, it would increase the adoption tax credit from $10,000 to $25,000, including the special-needs adoption credit and the overall maximum credit amount, and it would update the inflation adjustment rules so the credit can rise with inflation beginning with taxable years after December 31, 2025. The bill also applies the higher adoption credit to taxable years beginning after December 31, 2024.
Second, the bill would create a new federal income tax credit for qualified in vitro fertilization (IVF) expenses. The credit would apply to amounts paid or incurred for medical care related to IVF for the taxpayer or the taxpayer’s spouse on a joint return. The bill includes a no-double-benefit rule so the same IVF expenses cannot be used for both this credit and another deduction or credit. The IVF credit would apply to expenses paid or incurred after enactment.
Impact
If enacted, the bill would directly amend sections of the Internal Revenue Code governing the adoption credit and add a new section establishing an IVF expenses credit. It would increase the dollar amount of the adoption credit, change how that credit is indexed for inflation, and create a new refundable-style tax benefit structure for eligible IVF-related medical expenses, affecting taxpayers who adopt children or incur fertility treatment costs. The bill would also require conforming clerical changes to the tax code’s table of sections.
Sentiment
Available context shows no committee transcript or recorded votes, so there is no documented floor or committee debate to gauge partisan or stakeholder sentiment. Based on the bill’s subject matter, it appears to be framed as a pro-family tax relief measure aimed at supporting adoption and fertility treatment costs, which typically attracts favorable attention from supporters of family policy and reproductive assistance.
Contention
The main policy questions likely concern the fiscal cost of expanding the adoption credit and creating a new IVF credit, as well as how broadly IVF-related expenses should be defined and whether the credit should be refundable or limited. Another possible point of contention is the interaction with existing tax benefits, since the bill expressly prevents double counting of the same expenses. No specific objections or amendments are documented in the provided materials.