26 U.S. Code § 23 - Adoption expenses
In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.
In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.
The aggregate amount of qualified adoption expenses which may be taken into account under subsection (a) for all taxable years with respect to the adoption of a child by the taxpayer shall not exceed $10,000.
For purposes of subparagraph (A), adjusted gross income shall be determined without regard to sections 911, 931, and 933.
No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.
No credit shall be allowed under subsection (a) for any expense to the extent that funds for such expense are received under any Federal, State, or local program.
If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 25D and 1400C), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.
No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis.
Rules similar to the rules of paragraphs (2), (3), and (4) of section 21(e) shall apply for purposes of this section.
No credit shall be allowed under this section with respect to any eligible child unless the taxpayer includes (if known) the name, age, and TIN of such child on the return of tax for the taxable year.
The Secretary may, in lieu of the information referred to in subparagraph (A), require other information meeting the purposes of subparagraph (A), including identification of an agent assisting with the adoption.
The Secretary shall prescribe such regulations as may be appropriate to carry out this section and section 137, including regulations which treat unmarried individuals who pay or incur qualified adoption expenses with respect to the same child as 1 taxpayer for purposes of applying the dollar amounts in subsections (a)(3) and (b)(1) of this section and in section 137(b)(1).
For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
A prior section 23, added Pub. L. 95–618, title I, § 101(a), Nov. 9, 1978, 92 Stat. 3175, § 44C; amended Pub. L. 96–223, title II, §§ 201, 202(a)–(d), 203(a), Apr. 2, 1980, 94 Stat. 256, 258; renumbered § 23 and amended Pub. L. 98–369, div. A, title IV, §§ 471(c), 474(e), title VI, § 612(e)(2), July 18, 1984, 98 Stat. 826, 831, 912, related to residential energy credit, prior to repeal by Pub. L. 101–508, title XI, § 11801(a)(1), Nov. 5, 1990, 104 Stat. 1388–520.
2017—Subsec. (h)(2). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
2013—Subsec. (b)(4). Pub. L. 112–240, § 104(c)(2)(A)(i), struck out par. (4). Prior to amendment, text read as follows: “In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of—
“(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
“(B) the sum of the credits allowable under this subpart (other than this section and section 25D) and section 27 for the taxable year.”
Subsec. (c). Pub. L. 112–240, § 104(c)(2)(A)(ii), (iii), added par. (1), redesignated par. (3) as (2), and struck out former pars. (1) and (2) which related to rule for years in which all personal credits allowed against regular and alternative minimum tax and rule for other years, respectively.
2010—Subsec. (a)(3). Pub. L. 111–148, § 10909(a)(1)(B), (c), as amended by Pub. L. 111–312, temporarily substituted “$13,170” for “$10,000” in heading and text. See Effective and Termination Dates of 2010 Amendment note below.
Subsec. (b)(1). Pub. L. 111–148, § 10909(a)(1)(A), (c), as amended by Pub. L. 111–312, temporarily substituted “$13,170” for “$10,000”. See Effective and Termination Dates of 2010 Amendment note below.
Subsec. (b)(4). Pub. L. 111–148, § 10909(b)(2)(I)(i), (c), as amended by Pub. L. 111–312, temporarily struck out par. (4). Text read as follows: “In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of—
“(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
“(B) the sum of the credits allowable under this subpart (other than this section and section 25D) and section 27 for the taxable year.”
See Effective and Termination Dates of 2010 Amendment note below.
Subsec. (c). Pub. L. 111–148, § 10909(b)(2)(I)(ii), (c), as amended by Pub. L. 111–312, temporarily struck out subsec. (c) which related to carryforwards of unused credit. See Effective and Termination Dates of 2010 Amendment note below.
Subsec. (h). Pub. L. 111–148, § 10909(a)(1)(C), (c), as amended by Pub. L. 111–312, temporarily amended subsec. (h) generally. Prior to amendment, subsec. (h) related to adjustments for inflation. See Effective and Termination Dates of 2010 Amendment note below.
2008—Subsec. (b)(4)(B). Pub. L. 110–343 inserted “and section 25D” after “this section”.
2005—Subsec. (b)(4). Pub. L. 109–135, § 402(i)(3)(A)(i), substituted “In the case of a taxable year to which section 26(a)(2) does not apply, the credit” for “The credit” in introductory provisions.
Subsec. (c). Pub. L. 109–135, § 402(i)(3)(A)(ii), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by subsection (b)(4) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year. No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis.”
Pub. L. 109–58, § 1335(b)(1), which directed amendment of subsec. (c) by substituting “this section, section 25D, and section 1400C” for “this section and section 1400C”, was repealed by Pub. L. 109–135, § 402(i)(4). See Effective and Termination Dates of 2005 Amendment notes below.
2002—Subsec. (a)(1). Pub. L. 107–147, § 411(c)(1)(A), reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter—
“(A) in the case of an adoption of a child other than a child with special needs, the amount of the qualified adoption expenses paid or incurred by the taxpayer, and
“(B) in the case of an adoption of a child with special needs, $10,000.”
Subsec. (a)(2). Pub. L. 107–147, § 411(c)(1)(C), struck out concluding provisions which read as follows: “In the case of the adoption of a child with special needs, the credit allowed under paragraph (1) shall be allowed for the taxable year in which the adoption becomes final.”
Subsec. (a)(3). Pub. L. 107–147, § 411(c)(1)(B), added par. (3).
Subsec. (b)(1). Pub. L. 107–147, § 411(c)(1)(D), substituted “subsection (a)” for “subsection (a)(1)(A)”.
Subsec. (h). Pub. L. 107–147, § 418(a)(1), substituted “subsection (a)(3)” for “subsection (a)(1)(B)” in introductory provisions and inserted concluding provisions.
Subsec. (i). Pub. L. 107–147, § 411(c)(1)(E), substituted “the dollar amounts in subsections (a)(3) and (b)(1)” for “the dollar limitation in subsection (b)(1)”.
2001—Subsec. (a)(1). Pub. L. 107–16, § 202(a)(1), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.”
Subsec. (a)(2). Pub. L. 107–16, § 202(c), inserted concluding provisions.
Subsec. (b)(1). Pub. L. 107–16, § 202(b)(1)(A), substituted “subsection (a)(1)(A)” for “subsection (a)” and “$10,000” for “$5,000” and struck out “($6,000, in the case of a child with special needs)” before period at end.
Subsec. (b)(2)(A)(i). Pub. L. 107–16, § 202(b)(2)(A), substituted “$150,000” for “$75,000”.
Subsec. (b)(4). Pub. L. 107–16, § 202(f)(1), added par. (4).
Subsec. (c). Pub. L. 107–16, § 202(f)(2)(A), substituted “subsection (b)(4)” for “section 26(a)” and struck out “reduced by the sum of the credits allowable under this subpart (other than this section and sections 24 and 1400C)” before “, such excess”.
Pub. L. 107–16, § 201(b)(2)(E), substituted “and sections 24 and 1400C” for “and section 1400C”.
Subsec. (d)(2). Pub. L. 107–16, § 202(d)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘eligible child’ means any individual—
“(A) who—
“(i) has not attained age 18, or
“(ii) is physically or mentally incapable of caring for himself, and
“(B) in the case of qualified adoption expenses paid or incurred after December 31, 2001, who is a child with special needs.”
Subsecs. (h), (i). Pub. L. 107–16, § 202(e)(1), added subsec. (h) and redesignated former subsec. (h) as (i).
1998—Subsec. (b)(2)(A). Pub. L. 105–206, § 6018(f)(1), inserted “(determined without regard to subsection (c))” after “for any taxable year” in introductory provisions.
Subsec. (c). Pub. L. 105–206, § 6008(d)(6), inserted “and section 1400C” after “other than this section”.
1997—Subsec. (a)(2). Pub. L. 105–34, § 1601(h)(2)(A), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The credit under paragraph (1) with respect to any expense shall be allowed—
“(A) for the taxable year following the taxable year during which such expense is paid or incurred, or
“(B) in the case of an expense which is paid or incurred during the taxable year in which the adoption becomes final, for such taxable year.”
Subsec. (b)(2)(B). Pub. L. 105–34, § 1601(h)(2)(B), substituted “determined without regard to sections 911, 931, and 933.” for “determined—
“(i) without regard to sections 911, 931, and 933, and
“(ii) after the application of sections 86, 135, 137, 219, and 469.”
Amendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.
Pub. L. 112–240, title I, § 104(d), Jan. 2, 2013, 126 Stat. 2323, provided that:
Amendment by Pub. L. 111–148 terminated applicable to taxable years beginning after Dec. 31, 2011, and section is amended to read as if such amendment had never been enacted, see section 10909(c) of Pub. L. 111–148, set out as a note under section 1 of this title.
Amendment by Pub. L. 111–148 applicable to taxable years beginning after Dec. 31, 2009, see section 10909(d) of Pub. L. 111–148, set out as a note under section 1 of this title.
Pub. L. 110–343, div. B, title I, § 106(f), Oct. 3, 2008, 122 Stat. 3817, provided that:
Pub. L. 109–135, title IV, § 402(i)(3)(H), Dec. 21, 2005, 119 Stat. 2615, provided that:
Pub. L. 109–135, title IV, § 402(i)(4), Dec. 21, 2005, 119 Stat. 2615, struck out Pub. L. 109–58, § 1335(b)(1)–(3), and provided in part that:
Pub. L. 109–135, title IV, § 402(m), Dec. 21, 2005, 119 Stat. 2615, provided that:
Pub. L. 109–58, title XIII, § 1335(c), Aug. 8, 2005, 119 Stat. 1036, provided that:
Pub. L. 107–147, title IV, § 411(c)(3), Mar. 9, 2002, 116 Stat. 46, provided that:
Amendment by section 418(a)(1) of Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 418(c) of Pub. L. 107–147, set out as a note under section 21 of this title.
Pub. L. 108–311, title III, § 312(b)(2), Oct. 4, 2004, 118 Stat. 1181, provided that:
Pub. L. 107–147, title VI, § 601(b)(2), Mar. 9, 2002, 116 Stat. 59, provided that:
Amendment by section 201(b)(2)(E) of Pub. L. 107–16 applicable to taxable years beginning after Dec. 31, 2001, see section 201(e)(2) of Pub. L. 107–16, set out as a note under section 24 of this title.
Pub. L. 107–16, title II, § 202(g), June 7, 2001, 115 Stat. 49, provided that:
Pub. L. 105–206, title VI, § 6018(h), July 22, 1998, 112 Stat. 823, provided that:
Amendment by section 6008(d)(6) of Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Pub. L. 105–34, title XVI, § 1601(j), Aug. 5, 1997, 111 Stat. 1093, provided that:
Pub. L. 104–188, title I, § 1807(e), Aug. 20, 1996, 110 Stat. 1903, provided that:
Pub. L. 107–147, title IV, § 411(c)(1)(F), Mar. 9, 2002, 116 Stat. 45, provided that:
Pub. L. 104–188, title I, § 1807(d), Aug. 20, 1996, 110 Stat. 1903, provided that:
Written determinations for this section
These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.
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- Adoption Expenses : 2015-02-27
- Domestic Re-Adoption After Final Foreign Adoption : 2015-02-27
- DISCLOSURE OF INFORMATION Summonses : 2014-03-28
- DISCLOSURE OF INFORMATION : 2014-03-28
- DISCLOSURE OF INFORMATION Tax cases Privileges : 2000-02-25
- DISCLOSURE OF INFORMATION : 1999-07-30
- DISCLOSURE OF INFORMATION : 1999-03-12
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