I
109th CONGRESS
1st Session
H. R. 1561
IN THE HOUSE OF REPRESENTATIVES
April 12, 2005
Mr. Ford introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to expand the incentives for adoption and to amend part E of title IV of the Social Security Act to increase adoptive incentive payments.
Short title
This Act may be cited as the Childhood Adoption Act of 2005
.
Increase in allowable expenses for adoption; adoption credit made refundable
Increase in dollar limitation
Adoption credit
In general
Paragraph (1) of section 23(b) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended by striking $10,000
and inserting $15,000
.
Child with special needs
Paragraph (3) of section 23(a) of such Code (relating to $10,000 credit for adoption of child with special needs regardless of expenses) is amended—
in the text by striking $10,000
and inserting $15,000
, and
in the heading by striking $10,000
and inserting $15,000
.
Conforming amendment to inflation adjustment
Subsection (h) of section 23 of such Code (relating to adjustments for inflation) is amended to read as follows:
Adjustments for inflation
Dollar limitations
In the case of a taxable year beginning after December 31, 2005, each of the dollar amounts in subsections (a)(3) and (b)(1) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2004
for calendar year 1992
in subparagraph (B) thereof.
Income limitation
In the case of a taxable year beginning after December 31, 2002, the dollar amount in subsection (b)(2)(A)(i) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2001
for calendar year 1992
in subparagraph (B) thereof.
.
Adoption assistance programs
In general
Paragraph (1) of section 137(b) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended by striking $10,000
and inserting $15,000
.
Child with special needs
Paragraph (2) of section 137(a) of such Code (relating to $10,000 exclusion for adoption of child with special needs regardless of expenses) is amended—
in the text by striking $10,000
and inserting $15,000
, and
in the heading by striking $10,000
and inserting $15,000
.
Conforming amendment to inflation adjustment
Subsection (f) of section 137 of such Code (relating to adjustments for inflation) is amended to read as follows:
Adjustments for inflation
Dollar limitations
In the case of a taxable year beginning after December 31, 2005, each of the dollar amounts in subsections (a)(2) and (b)(1) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2004
for calendar year 1992
in subparagraph (B) thereof.
Income limitation
In the case of a taxable year beginning after December 31, 2002, the dollar amount in subsection (b)(2)(A)(i) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2001
for calendar year 1992
in subparagraph (B) thereof.
.
Credit made refundable
Credit moved to subpart relating to refundable credits
The Internal Revenue Code of 1986 is amended—
by redesignating section 36 as section 37,
by redesignating section 23, as amended by subsection (a), as section 36, and
by moving section 36 (as so redesignated) from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 (as so redesignated) in subpart C of part IV of subchapter A of chapter 1.
Conforming amendments
Section 24(b)(3)(B) of such Code is amended by striking and sections 23
and inserting section
.
Section 25(e)(1)(C) of such Code is amended by striking 23,
.
Section 25B(g)(2) of such Code is amended by striking and section 23
.
Section 137 of such Code is amended—
in subsection (d) by striking section 23(d)
and inserting section 36(d)
, and
in subsection (e) by striking section 23
and inserting section 36
.
Section 1400C(d) of such Code is amended by striking 23, 24,
and inserting 24
.
The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code of 1986 is amended by striking the item relating to section 23.
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting or 36
after section 35
.
The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the last item and inserting the following new items:
Sec. 36. Adoption expenses
Sec. 37. Overpayments of tax
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2004.
Increase in adoption incentive payments
In general
Section 473A(d)(1) of the Social Security Act (42 U.S.C. 673a(d)(1)) is amended—
in subparagraph (A), by striking $4,000
and inserting $8,000
;
in subparagraph (B), by striking $2,000
and inserting $8,000
; and
in subparagraph (C), by striking $4,000
and inserting $8,000
.
Increased program funding
Section 473A(h)(1) of such Act (42 U.S.C. 673a(h)(1)) is amended—
in subparagraph (C), by striking and
;
in subparagraph (D), by striking through 2008.
and inserting and 2005; and
; and
by adding at the end the following:
$86,000,000 for each of fiscal years 2006 through 2008.
.