The One, Big, Beautiful Bill Act (OBBBA) has introduced tax changes that could affect families. For example, parents who adopt may be eligible for more generous tax relief. Under current law, a tax credit of up to $17,280 is available for eligible costs of adoption in 2025. The credit begins to phase out in 2025 for taxpayers with modified adjusted gross income of $259,190. Beginning in 2025, the OBBBA makes the adoption tax credit partially refundable up to $5,000. This means that eligible families can receive this portion as a refund even if they owe no federal income tax. Previously, the credit was nonrefundable. Contact us if you have questions about how the new law affects your family.