[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3991 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3991

    To amend the Internal Revenue Code of 1986 to provide that the 
 exclusion from gross income for foster care payments shall also apply 
  to payments by certain nongovernmental placement agencies, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 1998

   Mr. Bunning of Kentucky 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 provide that the 
 exclusion from gross income for foster care payments shall also apply 
  to payments by certain nongovernmental placement agencies, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION FOR FOSTER CARE PAYMENTS TO APPLY TO PAYMENTS BY 
              CERTAIN NONGOVERNMENTAL PLACEMENT AGENCIES.

    (a) In General.--Subparagraph (A) of section 131(b)(1) of the 
Internal Revenue Code of 1986 (defining qualified foster care payment) 
is amended to read as follows:
                    ``(A) which is paid by--
                            ``(i) a State or political subdivision 
                        thereof, or
                            ``(ii) a nongovernmental organization which 
                        is licensed by, or contracts (directly or 
                        indirectly) with, a State (or political 
                        subdivision thereof) as a placement agency, 
                        and''.
    (b) Qualified Foster Individuals To Include Individuals Placed by 
Certain Nongovernmental Placement Agencies.--Subparagraph (B) of 
section 131(b)(2) of such Code is amended to read as follows:
                    ``(B) a nongovernmental organization which is 
                licensed by, or contracts (directly or indirectly) 
                with, a State (or political subdivision thereof) as a 
                placement agency.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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