Adoption Tax Credit Refundability Act of 2023

This bill makes the adoption tax credit refundable, meaning adoptive parents who claim the credit can receive a cash refund even if they owe no federal income tax. Currently, the credit is non-refundable, so any excess credit beyond taxes owed is lost. The bill redesignates the credit in tax code (from section 23 to 36C), adds new requirements for third-party affidavits to verify adoptions, and applies to tax returns filed for 2024 and later. It directly affects adoptive parents who qualify for the credit but have no tax liability.