Bunning Introduces Legislation To Provide Permanent Tax Relief To Families Who Adopt

BUNNING INTRODUCES LEGISLATION TO PROVIDE PERMANENT TAX RELIEF TO FAMILIES WHO ADOPT

U.S. Senator Jim Bunning (R-KY) today introduced the "Adoption Tax Relief Guarantee Act," co-sponsored by Senator Ben Nelson (D-NE), to make permanent the adoption tax incentives that were signed into law in 2001 to make adoption more affordable for American families. Other co-sponsors of the bill include Senators Sam Brownback (R-KS), Richard Burr (R-NC), Larry Craig (R-ID), Jim DeMint (R-SC), Pete Domenici (R-NM), Orrin Hatch (R-UT), Kay Bailey Hutchison (R-TX), James Inhofe (R-OK), Pat Roberts (R-KS), Gordon Smith (R-OR), David Vitter (R-LA), and John Warner (R-VA). The Bunning-Nelson legislation has also been endorsed by the National Council For Adoption and RESOLVE: the National Infertility Association.

Nearly six years ago Congress passed into law a tax relief package that included important adoption tax incentives to help middle class families break financial barriers to successfully adopt children in need of a loving home. However, these provisions are scheduled to expire or "sunset" after December 31, 2010. The Bunning-Nelson bill would make these tax incentives permanent and ensure that those who adopt a child can continue to receive a credit in the amount of their qualified expenses and guarantees the maximum $10,000 credit for those who adopt children with special needs.

"Our entire society benefits when children are placed with loving, permanent families, and it is extremely important that we pass a permanent extension of the adoption tax credit to encourage more families who wish to adopt a child to do so," said Bunning. "If this law is allowed to eventually expire it will prove costly to many families in Kentucky and across America who want to adopt children.

"Today's high cost for adoptions causes many couples to dismiss adoption as too expensive. By helping to ease this financial burden, we can encourage the development of more stable families and provide a brighter future for thousands of kids. The adoption tax credit and assistance programs have already helped countless children and families by making adoption more affordable. We owe it to future generations of children in need to make these provisions permanent and I look forward to working with my colleagues on both sides of the aisle in the Senate to accomplish that goal."

If the adoption tax credit is not made permanent and is allowed to expire the following will happen: The tax credit will be cut overnight from a maximum of $10,000 to $5,000; Families who adopt special needs children will no longer receive a flat $10,000 credit, and instead, they will be limited to a maximum of $6,000; And families claiming the credit may be pushed into the Alternative Minimum Tax (AMT).

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