[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 341 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 341

   To amend the Internal Revenue Code of 1986 to increase the amount 
 allowable for qualified adoption expenses, to permanently extend the 
  credit for adoption expenses, and to adjust the limitations on such 
             credit for inflation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 3, 1999

   Mr. Craig 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 amount 
 allowable for qualified adoption expenses, to permanently extend the 
  credit for adoption expenses, and to adjust the limitations on such 
             credit for inflation, 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. SHORT TITLE.

    This Act may be cited as the ``Hope for Children Act''.

SEC. 2. ADOPTION EXPENSES.

    (a) Increase in Amounts Allowed.--
            (1) Dollar amount of allowed expenses.--Paragraph (1) of 
        section 23(b) of the Internal Revenue Code of 1986 (relating to 
        dollar limitation) is amended by striking ``$5,000'' and all 
        that follows and inserting ``$10,000.''.
            (2) Phase-out limitation.--Clause (i) of section 
        23(b)(2)(A) of such Code (relating to income limitation) is 
        amended by striking ``$75,000'' and inserting ``$150,000''.
    (b) Repeal of Sunset on Children Without Special Needs.--
            (1) In general.--Paragraph (2) of section 23(d) of such 
        Code (relating to definition of eligible child) is amended to 
        read as follows:
            ``(2) Eligible child.--The term `eligible child' means any 
        individual who--
                    ``(A) has not attained age 18, or
                    ``(B) is physically or mentally incapable of caring 
                for himself.''.
            (2) Conforming amendment.--Subsection (d) of section 23 of 
        such Code (relating to definitions) is amended by striking 
        paragraph (3).
    (c) Adjustment of Dollar and Income Limitations for Inflation.--
Section 23 of such Code is amended by redesignating subsection (h) as 
subsection (i) and by inserting after subsection (g) the following new 
subsection:
    ``(h) Adjustments for Inflation.--In the case of a taxable year 
beginning after December 31, 2000, each of the dollar amounts in 
paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an 
amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) 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 1999' for 
        `calendar year 1992' in subparagraph (B) thereof.''.
    (d) Limitation Based on Amount of Tax.--
            (1) In general.--Subsection (c) of section 23 of such Code 
        is amended by striking ``the limitation imposed'' and all that 
        follows through ``1400C)'' and inserting ``the applicable tax 
        limitation''.
            (2) Applicable tax limitation.--Subsection (d) of section 
        23 of such Code (as amended by subsection (b)) is further 
        amended adding at the end the following new paragraph:
            ``(3) Applicable tax limitation.--The term `applicable tax 
        limitation' means the sum of--
                    ``(A) the taxpayer's regular tax liability for the 
                taxable year, reduced (but not below zero) by the sum 
                of the credits allowed by sections 21, 22, 24 (other 
                than the amount of the increase under subsection (d) 
                thereof), 25, and 25A, and
                    ``(B) the tax imposed by section 55 for such 
                taxable year.''.
            (3) Conforming amendments.--
                    (A) Subsection (a) of section 26 of such Code 
                (relating to limitation based on amount of tax) is 
                amended by inserting ``(other than section 23)'' after 
                ``allowed by this subpart''.
                    (B) Paragraph (1) of section 53(b) of such Code 
                (relating to minimum tax credit) is amended by 
                inserting ``reduced by the aggregate amount taken into 
                account under section 23(d)(3)(B) for all such prior 
                taxable years,'' after ``1986,''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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