On Friday, February 27th, the Department of the Treasury and the Internal Revenue Service published frequently asked questions (FAQs) regarding special needs determinations made by Indian tribal governments for adoption tax credit purposes.
As covered previously in GM #25-004 and GM #25-008, Section 70403 of the One Big Beautiful Bill Act (OBBBA) recognized Tribal governments’ ability to make special-needs adoption determinations for adoption purposes, which provides parity with state governments. In addition, OBBBA makes the adoption tax credit refundable for up to $5,000 (indexed for inflation).
Topic B of the FAQs considers issues specific to Indian tribal governments. The FAQs include questions relating to adoptions under ICWA, substantiation, and refundability. Additional information on adoption expenses can be found here.
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Inquiries may be directed to:
Telly J. Meier tmeier@hobbsstraus.com
Carolina M. Wasinger cwasinger@hobbsstraus.com
