Congress expands tax credits for adoption and fertility treatment

What it does

This bill increases the federal adoption tax credit from its current level to $25,000 and creates a new tax credit for in vitro fertilization (IVF) expenses. Both credits would be adjusted annually for inflation starting in 2025. The adoption credit applies to taxpayers who adopt children; the IVF credit allows individuals to claim a credit for qualified fertility treatment costs paid out-of-pocket.

Why we flagged it

The bill's core function is to reduce the tax burden on families pursuing adoption and fertility treatment by creating or expanding refundable/non-refundable credits. It is straightforward social policy, not a hidden carve-out or deregulation.

What the text implies

• The IVF credit is not explicitly capped by income or family size, potentially allowing high-income households to claim large credits for multiple cycles, concentrating benefit among those with resources to pursue multiple treatments.
• The bill does not specify whether the IVF credit is refundable (returns money to taxpayers with no tax liability) or non-refundable (only reduces taxes owed). Non-refundable credits provide no benefit to low-income families with minimal tax liability—the population most burdened by IVF costs.
• No limit is stated on the number of IVF cycles or total expenses per taxpayer, creating potential for very large credits in cases of repeated treatment.
• The adoption credit increase to $25,000 may incentivize private domestic adoption over foster-to-adopt pathways, which are publicly funded and serve children already in state custody.

Who it affects

Ordinary families pursuing adoption or fertility treatment face significant out-of-pocket costs ($10,000–$50,000+ for IVF; $5,000–$40,000 for adoption). Tax credits directly reduce the financial barrier to family-building for middle- and lower-income households, making these paths more accessible. The credits are broadly available (not means-tested in the text) and address a genuine public cost.

Who stands to gain

• fertility clinics and IVF providers
• adoption agencies (private domestic adoption)
• families with disposable income for out-of-pocket fertility and adoption costs

Named in the bill

Internal Revenue Code Section 23 (adoption credit), Internal Revenue Code Section 25F (new IVF credit), Section 213 (medical care definition), AIG, FBK, FMAO, PFG, PRU (mapped stocks with regulatory exposure)

Where it stands

• Feb 18, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 18, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.