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.

Bill Number

H.R. 1427

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-02-18: Referred to the House Committee on Ways and Means.

Last Updated

2026-03-31T15:54:23Z

AI-Generated Summary

Purpose

This bill (H.R. 1427) aims to support families building through adoption and fertility treatments by enhancing tax incentives in the Internal Revenue Code of 1986. It increases the existing adoption tax credit and introduces a new credit for in vitro fertilization (IVF) expenses to make these processes more financially accessible.

Key Provisions

• Adoption Credit Increase:
• Raises the credit for adopting a child with special needs from $10,000 to $25,000.
• Increases the overall maximum adoption credit amount from $10,000 to $25,000.
• Updates inflation adjustments: Starting in 2026, credit amounts will be adjusted annually based on the cost-of-living index, using 2024 as the base year (with special rules for income limitations tied to earlier years like 2001 and 2002).
• Applies to tax years beginning after December 31, 2024.

• New IVF Expenses Credit (Section 25F):
• Provides a dollar-for-dollar tax credit for "qualified IVF expenses," defined as medical care costs (as per existing tax rules for medical deductions) related to IVF procedures for the taxpayer or their spouse (on a joint return).
• Prevents "double benefits": Expenses used for this credit cannot also be claimed as a medical deduction or another tax credit.
• Applies to expenses paid or incurred after the date of enactment.

Significant Changes to Existing Law

• Adoption Credit: Previously capped at $10,000 (with inflation adjustments from 2016), the bill more than doubles the amounts and shifts the inflation base to 2024 for future increases, making the credit more generous and responsive to current economic conditions.
• IVF Credit: Introduces an entirely new tax credit (Section 25F) in a part of the tax code previously without fertility-specific incentives, filling a gap for reproductive medical costs not covered by existing medical expense deductions (which require exceeding 7.5% of adjusted gross income).

Potential Impacts

• On Citizens: Lowers tax burdens for adopting families (especially those with special needs children) and couples using IVF, potentially increasing adoption rates and access to fertility treatments. This could benefit middle- and lower-income families by reducing out-of-pocket costs, which often exceed $15,000 per IVF cycle.
• On Government Agencies: The Internal Revenue Service (IRS) will need to update forms, guidance, and systems to administer the expanded adoption credit and new IVF credit, possibly increasing administrative workload and federal revenue loss (estimated forgone taxes could reach billions over time, though not specified in the bill).
• On International Relations: No direct impact, as the bill focuses on domestic tax policy for U.S. taxpayers.

Main Stakeholders Affected

• Primary: Individual taxpayers, including adoptive parents (particularly those adopting children with special needs) and couples or individuals pursuing IVF.
• Secondary: Adoption agencies and fertility clinics, which may see increased demand due to financial incentives; the IRS, responsible for implementation; and federal budget planners, as credits reduce tax revenues.

Notable Legal, Constitutional, or Political Implications

• Legal: Aligns with existing tax code structures for credits (non-refundable, subject to income phase-outs), but the IVF credit's focus on medical care could invite IRS scrutiny on what qualifies as "qualified expenses" (e.g., verifying IVF-related costs). No conflicts with anti-discrimination laws, as it applies neutrally to taxpayers.
• Constitutional: No apparent issues; tax credits are a standard congressional power under Article I, and the bill promotes equal access to family-building without infringing on rights.
• Political: Advances pro-family policies by subsidizing adoption and reproductive technologies, potentially appealing to bipartisan support for child welfare and healthcare access, though it may spark debates on federal spending priorities amid budget deficits.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Mackenzie, Ryan [R-PA-7]

Recent Actions

• 2025-02-18: Referred to the House Committee on Ways and Means.
• 2025-02-18: Introduced in House
• 2025-02-18: Introduced in House

Bill Versions

• 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. — issued 2025-02-18 — PDF (4 pages)