[mrsred]

Here in Washington we are reimbursed fro up to $1500.00for adoption expenses. That was a straight reimbursement, after finalizing adoptions we turned in copies of reciepts to adoption support and got our money back. There is also the federal adoption credit, which is a different thing entirely. When you adopt a "special needs" child from the foster system you are allowed the full $10,000. tax credit. It can be carried over five years. So, if you do not use the full credit in one year the remainder can be carried over to subsequent years up to five years. If in five years you have not used the full credit you lose tha remainder.
And yes, we get VERY substantial tax refunds now. Last year, not only were we carrying forward on E's adoption credit, we had finalized another adotpion in 06. Figure we will be getting good refunds for at least another five or six years (in process of one more adoption).