H.R. 2833 — Adoption Tax Credit Refundability Act of 2025

This section makes the adoption tax credit refundable for taxable years beginning after December 31, 2025, by redesignating Internal Revenue Code (IRC) section 23 as IRC section 36C in the refundable credits subpart and striking the limitation under former subsection (c) to the taxpayer's income tax liability. (Thus, the credit of up to the maximum allowable amount for qualified adoption expenses may be refunded to the extent it exceeds tax liability.) The section further (1) directs the Secretary of the Treasury to issue regulations and guidance for a standardized third-party affidavit verifying qualified adoptions, including those involving children with special needs; (2) provides a transitional rule treating any unused credit carryforward from the prior taxable year as part of the first applicable year's refundable credit; and (3) makes conforming amendments to update cross-references to the new IRC section 36C, including in the Social Security Act (42 U.S.C. 671(a)(33)).