Congress expands tax credits for adoption and fertility treatment
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. · Filed by Ryan Mackenzie (R-PA) · Introduced Feb 18, 2025 · Referred to committee
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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.
The full analysis lists 4 implications of this text.
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