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.

This section increases the adoption tax credit under section 23 of the Internal Revenue Code of 1986 by raising the credit amount for the adoption of a child with special needs to $25,000 (from $10,000) and raising the maximum adoption credit to $25,000 (from $10,000). It also revises the inflation adjustment rules for the credit, so that for taxable years beginning after December 31, 2025, the dollar amounts in section 23(a)(3) and section 23(b)(1) and (2)(A)(i) will be indexed using calendar year 2024 (from calendar year 2016 for the general adjustment and from calendar year 2023 for the income limitation adjustment), with amounts rounded to the nearest $10. The amendments apply to taxable years beginning after December 31, 2024.

This section establishes a new Internal Revenue Code section 25F to provide an individual income tax credit for qualified in vitro fertilization expenses paid or incurred after the date of enactment. The credit applies to amounts paid or incurred for medical care, as defined in 26 U.S.C. § 213(d), relating to in vitro fertilization for the taxpayer or, on a joint return, the taxpayer’s spouse. It also prevents a double tax benefit by reducing any otherwise allowable deduction or other credit for the same expense by the amount of the new credit.