[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 935 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 935

To amend the Internal Revenue Code of 1986 to increase the limit on the 
 credit for adoption expenses and the exclusion for employer-provided 
adoption assistance for the adoption of special needs children, and to 
       allow penalty-free IRA withdrawals for adoption expenses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 18 (legislative day, June 17), 1997

   Mr. Specter (for himself, Mr. Santorum, Mr. Bond, Mr. Inouye, Mr. 
Cochran, and Mr. Harkin) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to increase the limit on the 
 credit for adoption expenses and the exclusion for employer-provided 
adoption assistance for the adoption of special needs children, and to 
       allow penalty-free IRA withdrawals for adoption expenses.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Adoption Promotion Act of 1997''.

SEC. 2. INCREASE IN LIMIT ON CREDIT FOR ADOPTION EXPENSES AND EXCLUSION 
              FOR EMPLOYER-PROVIDED ADOPTION ASSISTANCE FOR ADOPTION OF 
              SPECIAL NEEDS CHILDREN.

    (a) Credit.--Section 23(b)(1) of the Internal Revenue Code of 1986 
(relating to dollar limitation) is amended by striking ``$6,000'' and 
inserting ``$7,500''.
    (b) Exclusion.--Section 137(b)(1) of the Internal Revenue Code of 
1986 (relating to dollar limitation) is amended by striking ``$6,000'' 
and inserting ``$7,500''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.

SEC. 3. DISTRIBUTIONS FROM CERTAIN PLANS MAY BE USED WITHOUT PENALTY TO 
              PAY ADOPTION EXPENSES.

    (a) In General.--Section 72(t)(2) of the Internal Revenue Code of 
1986 (relating to exceptions to 10-percent additional tax on early 
distributions from qualified retirement plans) is amended by adding at 
the end the following:
                    ``(E) Distributions from certain plans for adoption 
                expenses.--Distributions to an individual from an 
                individual retirement plan of so much of the qualified 
                adoption expenses (as defined in section 23(d)(1)) of 
                the individual as does not exceed $2,000.''.
    (b) Conforming Amendment.--Section 72(t)(2)(B) of the Internal 
Revenue Code of 1986 is amended by striking ``or (D)'' and inserting 
``, (D) or (E)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments and distributions after December 31, 1996.
                                 <all>