The adoption tax credit was part of the Economic Growth and Tax Relief Reconciliation Act of 2001 and was scheduled to sunset in 2010, however, the new health care bill signed on March 23, 2010 has extended the credit through 2011 and raised the amount to $13,170. Plus, now it’s refundable for the first time. So, you may apply up to $13,170 of your adoption expenses toward your federal taxes when you file in 2010 or 2011, depending on what year your adoption is finalized. If you do not receive the full amount in tax credit, then you should get a refund for the unused credit. Learn more about the tax credit by investigating the links below.
Actual Bill Text: Go to the actual bill text it is Sec. 10909 near the bottom.
"Taxpayers who adopt children: Effective in 2010, the bill makes the
adoption credit refundable, increases the credit by $1,000 and
extends the increased adoption credit through 2011."
Together for Adoption also has a wide variety of great resources related to this government credit.