As part of the Health Care Reform Act, the credit was continued and enhanced. For Tax Year 2010, it was increased to 13,170. For Tax Year 2011, it will be $13,370. It will be in the same range for 2012, depending on the rate of inflation.
For 2010 and 2011, the credit is refundable, meaning that it can be taken even if a taxpayer did not pay taxes in the amount of the credit. The taxpayer can receive a refund. For 2012, it is not refundable.
At this point, the enhanced tax credit does not exist beyond 2012. There is legislation to do so pending (although not moving real fast). If it is not extended, it will not disappear entirely, but will revert to $5,000 (any adoption) or $6,000 (special needs adoption).
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