First, the original provision in the house version harmed families seeking to adopt a child on two fronts. First, if an employer provides financial assistance to a worker adopting a child, that money would be taxed as income starting next year. In 2017, when an employer pays for up to $13,570 in qualified adoption expenses for an employee, the employee pays no taxes on that assistance.
The provision would also repeal the baseline adoption credit, which generally provides taxpayers with a credit of up to $13,570 per eligible child in 2017. Under the current rules, the credit would be phased out for taxpayers with adjusted gross income between $203,540 and $243,540.
As a result of these consequences, many loving parents who adopted a child, were not very happy and they spoke out
Following the criticism, the Senate nixed the provision.