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HR 1427

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.

119th Congress Introduced by Ryan Mackenzie

Raises the federal adoption tax credit cap from $10,000 to $25,000 and adds automatic annual inflation adjustments, expanding relief for adoptive families.

Introduced in House
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Bill Summary · HR 1427

Summary — H.R. 1427 (Introduced May 28, 2025)

Title: 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.

Purpose

H.R. 1427 seeks to (1) increase the dollar limit on the existing federal adoption tax credit and (2) (per the bill title) create a new federal tax credit for in vitro fertilization (IVF) expenses. The version of the bill provided, however, contains explicit statutory text only for the amendment to the adoption credit (Internal Revenue Code section 23).

Key provisions (text provided)

  • Increase adoption credit limit:
    • Section 23(b)(1) of the Internal Revenue Code is amended by striking "$10,000" and inserting "$25,000." This raises the dollar cap on the adoption credit from $10,000 to $25,000 (as reflected in the bill text).
  • Index certain credit amounts for inflation:
    • A new Section 23(h) replaces the existing subsection to provide automatic annual cost‑of‑living adjustments (COLA) beginning for taxable years after December 31, 2025.
    • The COLA is to be computed using the cost-of-living adjustment mechanism in section 1(f)(3) with specified year substitutions in the bill text (the bill specifies particular base-year substitutions for applying the COLA to different subparts).
    • Amounts adjusted under the COLA, if not a multiple of $10, are to be rounded to the nearest $10.
  • Effective dates:
    • The amendments in subsection (c) apply to taxable years beginning after December 31, 2024.
    • The COLA provisions apply to taxable years beginning after December 31, 2025.

Who would be affected

  • Families and individuals who incur qualifying adoption expenses and claim the federal adoption tax credit would benefit directly — the increased dollar limit would allow a larger dollar-for-dollar reduction in tax liability for adoption expenses (up to the new cap).
  • If enacted in the form suggested by the title, individuals or couples incurring IVF expenses would also be affected by a new tax credit; however, the provided bill text does not contain implementing language for an IVF expenses credit, so specifics (amounts, eligibility, refundable vs. nonrefundable, qualified expenses) are not available in this version.

Procedural status (as provided)

  • Introduced in the House: May 28, 2025 (sponsored by Rep. Ryan Mackenzie).
  • Referred to the House Committee on Ways and Means: listed 2025-02-18 (record shows this date; legislative record contains several actions thereafter).
  • House actions (per provided record): placed on Congratulatory & Memorial Resolutions Calendar, laid before the House, placed on Local & Consent Calendars (May 29–30), adopted and reported enrolled (June 1, 2025); a nonrecord vote was noted in the Journal. (Note: the listed sequence of dates in the record appears unusual; dates are provided here as recorded.)

Notes and uncertainties

  • The bill title indicates creation of an IVF expenses credit, but the excerpt supplied includes only amendments to IRC section 23 (the adoption credit) and COLA mechanics. No specific statutory language establishing an IVF credit is present in the text excerpt provided. If the goal is to evaluate the IVF credit, the full bill text or subsequent amendments are needed to review eligibility, dollar amounts, and mechanics.
  • No official revenue estimate or cost estimate is included in the provided materials; increasing the adoption credit cap and indexing it would be expected to reduce federal revenues to the extent taxpayers claim higher credits.

If you want, I can (a) draft a plain‑language comparison showing current law vs. the bill’s changes to the adoption credit, or (b) search for the full bill text (including any IVF credit language) and a Congressional Budget Office estimate if available.

Compiled from official sources — confirm details with the bill’s official record.

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