Sen. Scott Fights to Restore Adoption Tax Credit Refundability, Relieve Foster Care Crisis

WASHINGTON – Today, U.S. Senator Tim Scott (R-S.C.) joined 23 of his Senate colleagues in reintroducing the Adoption Tax Credit Refundability Act, which encourages adoption by restoring the refundable portion of the Adoption Tax Credit. For lower income families who are unable to afford adoption fees such as attorney fees and travel expenses, making the Adoption Tax Credit fully refundable would allow them to recoup the full $14,890 tax credit per child, removing an income barrier to adoption and easing the foster care crisis. 

A nationwide shortage of foster homes has highlighted the urgency of reforming the adoption process. Between 2021 and 2022, over half of U.S. states saw a decline in licensed foster homes, including a 61% decline in South Carolina—the largest of any state. Additionally, research shows the federal government saves approximately $65,000- $127,000 every time a family adopts from foster care and bring a child into a permanent home.

“Too many kids who need a home are being left out in the cold as our nation grapples with a severe foster care shortage,” said Senator Scott.“Incentivizing adoption in our tax code is a step toward encouraging families to adopt, taking the burden off our foster care system and giving thousands of children parents who empower them to build a brighter future.”
Full text of the Adoption Tax Credit Refundability Act can be found here