[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 938 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 938

    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

                              May 23, 2001

Mr. Jeffords (for himself, Mr. Dodd, Mr. Fitzgerald, and Mr. Brownback) 
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) a qualified foster care placement 
                        agency, 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) a qualified foster care placement agency.''
    (c) Qualified Foster Care Placement Agency Defined.--Section 131(b) 
of the Internal Revenue Code of 1986 is amended by redesignating 
paragraph (3) as paragraph (4) and by inserting after paragraph (2) the 
following:
            ``(3) Qualified foster care placement agency.--The term 
        `qualified foster care placement agency' means any placement 
        agency which is licensed or certified by a State or political 
        subdivision thereof to make foster care payments to providers 
        of foster care.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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