Planning to adopt?
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Health Care Reform Law

Expands Adoption Tax Credit

Public Law 111.148, the Patient Protection and Affordable Care Act, was signed into law on March 23, 2010. Section 10909 of the Act extended the Adoption Tax Credit for one more year (January 1, 2010 – December 31, 2011) and expanded the program in two ways:

  • For tax year 2010, the amount of the credit was increased from $12,170 to $13,170 per child with a finalized adoption. For tax year 2011, the amount of the credit will be a minimum of $13,170 (it may be indexed for inflation).
  • The credit was made refundable for all types of adoption for tax years 2010 and 2011

Because the adoption tax credit will be refundable, families who have smaller tax liability will now be able to benefit from the credit for adoptions finalized in 2010 and 2011.

Note: Refundable is the key word. It means that receipts/documentation of expenses are not necessary. It means that the parents do not need to owe the government money to get a tax credit for adoption. It means that no matter if/how much the parents owe the government,even if it is zero, they will get a credit refund of $13,170.

  • Please refer to the IRS for formal legal guidance.

* Information taken from Voice For Adoption and Child Information Gateway

Non-recurring adoption expenses by state

Adoptive parents can receive reimbursement of certain approved, “one-time” adoption expenses incurred in the process of finalizing a special needs adoption. Examples of expenses covered include: adoption fees, court costs,attorney fees, travel to visit the child and home modifications to accommodate a disability.

  • To be eligible for non-recurring adoption expense reimbursement, the adoptive family must be adopting a child who meets the definition of special needs in their state and have received prior approval for the expenses from their state agency.
  • Request for reimbursement must be made prior to the finalization of adoption.

Coloradomaximum of $800.00 per child

Missourimaximum of $2,000.00 per child

Nevadamaximum of $250.00 per child

New Mexico maximum of $2,000.00 per child

Oklahomamaximum of $1,200.00 per child (up to $2,000.00 on a

case-by-case basis)

South Dakotamaximum of $1,500.00 per child

Utahmaximum of $2,000.00 per child

Wyomingmaximum of $2,000.00 per child

  • For more information or information on other states, please refer to

Adoption Assistance/Subsidies

Adoption assistance (also known as adoption subsidy) is a vital support to families raising children with often-serious behavioral, emotional, or physical disabilities. With adoption assistance, families are able to access medical care, counseling or therapy, special equipment, tutoring programs, and other supports that help them raise their children who have special needs.

  • An adopting family must apply for this assistance through their county or private agency social worker. It will be processed through the State Department of Human Services. All adoption assistance agreements should be signed before the adoption is finalized.

*For additional information, please contact NACAC's AdoptionSubsidyResourceCenter at 800-470-6665, 651-644-3036, or e-mail at .