If you adopt an eligible child, you may be able to claim the Adoption Credit or income exclusion for employer-provided adoption benefits. Qualified adoption expenses are limited to $17,280 per qualifying child for 2025. The credit and the exclusion apply to international, domestic, private or public foster care adoptions.
Beginning in tax year 2025, a portion of the Adoption Credit is refundable up to $5,000. The non-refundable portion of the credit can be carried forward for a maximum of 5 years; however, it cannot result in a refund. Any remaining non-refundable portion after 5 years is forfeited.
For detailed information visit the IRS: https://www.irs.gov/credits-deductions/individuals/adoption-credit