Aderholt Announces Major Win for Adoptive Families Under Working Families Tax Cuts

March 18, 2026 - WASHINGTON, D.C. - Congressman Robert Aderholt, Co‑Chair of the Congressional Adoption Caucus and Chairman of the House Values Action Team, announced a significant victory for adoptive families following a key update from the Internal Revenue Service. The IRS has revised its interpretation of the partially refundable Adoption Tax Credit included in the Working Families Tax Cuts package - a change that will put meaningful dollars back into the hands of families who have opened their homes to children in need.

The Working Families Tax Cuts were designed to ease financial pressures on American workers, families, seniors, and small businesses. The Adoption Tax Credit, long championed by Aderholt, is a central part of Republican efforts to lower the cost of raising a family and strengthen long‑term economic stability for children.

Aderholt said the IRS's updated guidance delivers exactly what lawmakers intended.

"One of our top priorities in the Working Family Tax Cuts was providing families with a refundable Adoption Tax Credit," Aderholt said. "I'm pleased to report that the IRS has announced for tax year 2025, carryforward amounts of the adoption tax credit from prior years are refundable for up to $5,000 per qualifying child."

Under the previous IRS interpretation, adoptive families who filed taxes between 2020 and 2024 were unable to access part of the credit they had earned. The new guidance corrects that issue. Families with pre‑2025 carryforward credits will now be eligible to receive up to $5,000 in refundable credits per child in the 2025 tax year - a change advocates say will make adoption more financially attainable for thousands of households.

Aderholt, who has spent years pushing for policies that reduce barriers to adoption, called the update both a moral and practical win.

"As Adoption Caucus Chairman and a longtime advocate for children and families, this is personal," he said. "Making adoption more affordable is both morally right and fiscally responsible. Refundability means more children can be welcomed into permanent homes, and more families can say yes to adoption without being held back by financial constraints. I'm proud to see Republicans put families first."

Supporters say the IRS's decision will translate into significant savings for families who have already made the commitment to adopt - and may encourage more Americans to consider providing a permanent home to a child.

With the Semiquincentennial approaching and family‑centered policy debates intensifying in Washington, Aderholt's announcement underscores a broader push to strengthen support systems for parents and children nationwide.