[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 87 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 87

    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 qualifying placement agencies, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 19, 1999

  Mr. Bunning 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 provide that the 
 exclusion from gross income for foster care payments shall also apply 
 to payments by qualifying 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 
              QUALIFYING PLACEMENT AGENCIES.

    (a) In General.--The matter preceding subparagraph (B) of section 
131(b)(1) of the Internal Revenue Code of 1986 (defining qualified 
foster care payment) is amended to read as follows:
            ``(1) In general.--The term `qualified foster care payment' 
        means any payment made pursuant to a foster care program of a 
        State or political subdivision thereof--
                    ``(A) which is paid by--
                            ``(i) a State or political subdivision 
                        thereof, or
                            ``(ii) any other placement agency which is 
                        licensed by, or contracts (directly or 
                        indirectly) with, a State (or political 
                        subdivision thereof) for such foster care 
                        program, and''.
    (b) Qualified Foster Individuals To Include Individuals Placed by 
Qualifying Placement Agencies.--Subparagraph (B) of section 131(b)(2) 
of the Internal Revenue Code of 1986 (defining qualified foster 
individual) is amended to read as follows:
                    ``(B) any other placement agency which is licensed 
                by, or contracts (directly or indirectly) with, a State 
                (or political subdivision thereof) for a foster care 
                program of such State (or political subdivision 
                thereof).''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.
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