Grants, Loans & Tax Credits

Funding for Adoptive Families

While private adoption costs can be expensive, there is some financial assistance available to help growing families. Here are options for hopeful parents looking to finance their adoption:

Federal Adoption Tax Credit: The federal adoption tax credit for 2025 is capped at $17,280 per eligible child. This credit is partially refundable, meaning up to $5,000 of the credit can be refunded even if the adoptive parent has no federal tax liability. The credit begins to phase out for taxpayers with a modified adjusted gross income above $259,190 and is eliminated for those with an AGI over $299,190. Adoptive parents of children with special needs may claim the full credit even if their expenses are lower than the maximum amount.
Employer Assistance: Some employers, including the US Military, provide financial assistance and leave from work. You should check with your employers’ HR department to see what adoption benefits exist.
- You can search The Dave Thomas Foundation for Adoption Best Adoption-Friendly Workplaces List to see if your company is listed.
Adoption Loans: Adoptive parents may consider traditional lines of credit, such as credit cards, home equity loans or retirement accounts, as well as low-interest adoption loans and religious organizations that offer financial assistance specifically for adoptive families. However, it is recommended that you speak with a financial advisor before taking out a loan, as this money will eventually need to be paid back.
- America’s Christian Credit Union offers loans for prospective adoptive families. Click here to visit ACCU’s website.
More information on adoption grants can be found on the Fund Your Adoption website.
Adoption Fundraisers: Many families turn to creative adoption fundraising ideas to help finance their adoption.