ADOPTION TAX CREDIT NEW (source: The Kiplinger Tax Letter, Vol. 88, No. 1, Jan. 4, 2013)
"The adoption credit can be taken on up to $12,770 of costs, a $120 boost. If the credit is more than a filer's tax liability, the excess is not refundable. The full $12,770 credit is available for a special needs adoption, even if it cost less. The credit starts to dry up for filers with AGIs over $191,530 and ends at $231,530. The exclusion for company-paid adoption aid also increases to $12,770."