TO: Members of the Adoption Community
FROM: Joe Kroll and Alicia Groh (651) 644-3036

Act now to ensure that the adoption tax credit is made permanent and that the special needs adoption flat tax credit is effective for tax year 2002!

If Congress does not take action, the $10,000 adoption tax credit will expire at the end of 2010, and the flat tax credit for special needs adoption won't take effect until tax year 2003.

Message to Senators:

Ask your Senator to support two changes in the adoption tax credit:

1. Make the special needs adoption flat tax credit effective beginning in the 2002 tax year.
2. Make the expanded adoption tax credit permanent by eliminating the sunset provision.

Ask for your Senator's support of HR 4800 sponsored by Senator Jim Bunning (R-KY) with an amendment (S. 1802) by Senator Mary Landrieu (D-LA) that makes the special needs adoption flat tax credit effective beginning in the 2002 tax year. In addition, Senators Larry Craig (R-ID) and Charles Grassley (R-IA) have indicated their willingness to co-sponsor the changes. Encourage your Senator to sign on as a co-sponsor.

It is also important to express your support for these changes to Majority Leader Thomas Daschle and Minority Leader Trent Lott.

Message to Representatives: Ask them to support the amended Senate version of HR 4800 that would make the special needs adoption flat tax credit effective beginning in the 2002 tax year and eliminate the sunset provision on the adoption tax credit.

Call the Capitol switchboard to be connected to a Senator or Representative (202-224-3121). For e-mail addresses and other contact information for each Senator, go to www.senate.gov/contacting/index.cfm.

See below for contact information for key Senators and Representatives to contact.

Background

On June 4, the U.S. House of Representatives passed legislation (H.R. 4800) by a vote of 391-1 to remove the sunset provision from the adoption tax credit, which is currently set to expire December 31, 2010. While the House bill only addresses the sunset provision, Senator Jim Bunning (R-KY) and Mary Landrieu (D-LA) have agreed to offer an amendment that would make the special needs adoption flat tax credit effective beginning in the 2002 tax year.

Last June when Congress passed an expansion and extension of the adoption tax credit they made the expanded tax credit effective starting in the 2002 tax year. When they added the special needs adoption flat tax credit they made it effective beginning in the 2003 tax year. The special needs adoption flat tax credit was created in recognition of the many costs associated with special needs adoption that are not included in the IRS list of qualified adoption expenses. By delaying the start of the special needs adoption flat tax credit, Congress created a disincentive to finalizing adoptions of children with special needs. For more background on the adoption tax credit, read the article on NACAC's web site: www.nacac.org

As word of this new adoption flat tax credit has spread, parents are confronted with the dilemma of delaying finalization of a special needs adoption to January 2, 2003 or losing a significant tax credit. Would a businessperson delay an investment decision to take advantage of a tax credit? Certainly.

With H.R. 4800 arriving in the Senate, advocates have an excellent opportunity to affect policy. Please write, call, fax, or e-mail and ask your Senator to support amendments to H.R. 4800 that would make the special needs adoption flat tax credit effective beginning in the 2002 tax year. Also write to Senate leadership and members of the Senate Finance Committee, which will consider this bill. The Democratic leadership in the Senate is reluctantly supporting the elimination of the sunset, so it is important to contact the leadership and tell them that this is an important tax credit and the sunset provision should be eliminated. Pairing the elimination of the sunset provision for the adoption tax credit with speeding up the flat tax credit for special needs adoptions, might provide a balance that all parties can embrace. When expressing your support for an amended H.R. 4800, please share any stories you have about families who have delayed an adoption in order to be able to access the flat tax credit.

Key Senators to Contact:

Sen. Thomas A. Daschle (D-SD, Senate Majority leader): DC Office: 509 HSOB, Washington, DC 20510, ph: 202-224-2321, fax: 202-224-7895, Website: www.senate.gov/~daschle

Sen. Trent Lott (R-MS, Senate Minority leader) : DC Office: 487 RSOB, Washington, DC 20510, ph: 202-224-6253, fax: 202-224-2262, Web site: lott.senate.gov

Sen. Max Baucus (D-MT, Chair Senate Finace Committee): DC Office: 511 HSOB, Washington, DC 20510, ph: 202-224-2651, fax: 202-224-1974, Web site: www.senate.gov./~baucus

Sen. Charles Grassley (R-IA, Ranking Minority Senate Finance Committee): DC Office: 135 HSOB, Washington, DC 20510, ph: 202-224-3744, fax: 202-224-6020, Web site: www.senate.gov/~grassley

Sen. Jim Bunning, (R-KY, bill sponsor): DC Office: 312 HSOB, Washington, DC 20510, ph: 202-224-4343, fax: 202-228-1373, Web site: www.senate.gov/~bunning

Sen. Mary L. Landrieu (D-LA, Co-chair Congressional Coalition on Adoption); DC Office: 724 HSOB, Washington, DC 20510, ph: 202-224-5824, fax: 202-224-9735, Web site: www.senate.gov/~landrieu

Sen. Mike DeWine: DC Office: 140 RSOB, Washington, DC 20510, ph: 202-224-2315, fax: 202-224-6519, Web site: www.senate.gov/~dewine

Sen. Larry Craig (R-ID, Co-chair Congressional Coalition on Adoption): DC Office: 520 HSOB, Washington, DC 20510, ph: 202-224-2752, fax: 202-228-1067, Web site: www.senate.gov/~craig

Key Representatives to Contact:

Rep. Dennis Hastert (R-IL, Speaker of the House): DC Office: 2369 RHOB, Washington, DC 20515, ph: 202-225-2976, fax: 202-225-0697, Web site: www.house.gov/hastert

Rep. Tom DeLay (R-TX, House Majority Whip): DC Office: 2370 RHOB, Washington, DC 20515, ph: 202-225-5951, fax: 202-225-5241, Web site: tomdelay.house.gov

Rep. Richard Gephart (D-MO, Minority Leader): DC Office: 1236 LHOB, Washington, DC 20515, ph: 202-225-2671, fax: 202-225-7414, Web site: www.house.gov/gephart

Rep. Bill Thomas (R-CA, Chair House Ways and Means Committee): DC Office: 2208 RHOB, Washington, DC 20515, ph: 202-225-2915, fax: 202-225-8798, Web site: www.house.gov/billthomas

Rep. Charles B. Rangel (D-NY, Ranking Minority House Ways and Means Committee): DC Office: 2354 RHOB, Washington, DC 20515, ph: 202-225-4365, fax: 2502-225-0816, Web site: www.house.gov/rangel

Rep. Dennis Camp (R-MI): DC Office:137 CHOB, Washington, DC 20515, ph: 202-225-3561, fax: 202-225-9679, Web site: www.house.gov/camp

Rep. Anne Northup (R-KY, Co-chair Congressional Coalition on Adoption): DC Office: 1004 LHOB, Washington, DC 20515, ph: 202-225-5401, fax: 202-225-55776, Web site: www.house.gov/northup

Rep. James L. Oberstar (D-MN, Co-chair Congressional Coalition on Adoption): DC Office: 2365 RHOB, Washington, DC 20515, ph: 202-225-6211, fax: 202-225-0699, Web site www.house.gov/oberstar

Credits: Joe Kroll and Alicia Groh