This bill, titled the "Adoption Tax Credit Refundability Act of 2025," aims to significantly enhance the federal adoption tax credit by making it refundable . This change means that eligible families could receive the full amount of the credit as a refund, even if it exceeds their tax liability, thereby expanding access to financial assistance for adoption expenses. To achieve this, the legislation renumbers the existing adoption credit from section 23 to section 36C of the Internal Revenue Code and relocates it to the subpart designated for refundable credits. It also includes various conforming amendments across the tax code to reflect this reclassification and removes provisions related to the credit's previous non-refundable status. Furthermore, the bill directs the Treasury Department to establish regulations and guidance for a standardized third-party affidavit . This affidavit would serve to verify legal adoptions, including those involving children with special needs, streamlining the documentation process for families. These changes are set to apply to taxable years beginning after December 31, 2024, with a transitional rule ensuring that any unused credit carryforwards from prior years will also be treated as refundable.