[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1561 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1561

To amend the Internal Revenue Code of 1986 to expand the incentives for 
adoption and to amend part E of title IV of the Social Security Act to 
                 increase adoptive incentive payments.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 12, 2005

   Mr. Ford 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 expand the incentives for 
adoption and to amend part E of title IV of the Social Security Act to 
                 increase adoptive incentive payments.

    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 ``Childhood Adoption Act of 2005''.

SEC. 2. INCREASE IN ALLOWABLE EXPENSES FOR ADOPTION; ADOPTION CREDIT 
              MADE REFUNDABLE.

    (a) Increase in Dollar Limitation.--
            (1) Adoption credit.--
                    (A) In general.--Paragraph (1) of section 23(b) of 
                the Internal Revenue Code of 1986 (relating to dollar 
                limitation) is amended by striking ``$10,000'' and 
                inserting ``$15,000''.
                    (B) Child with special needs.--Paragraph (3) of 
                section 23(a) of such Code (relating to $10,000 credit 
                for adoption of child with special needs regardless of 
                expenses) is amended--
                            (i) in the text by striking ``$10,000'' and 
                        inserting ``$15,000'', and
                            (ii) in the heading by striking ``$10,000'' 
                        and inserting ``$15,000''.
                    (C) Conforming amendment to inflation adjustment.--
                Subsection (h) of section 23 of such Code (relating to 
                adjustments for inflation) is amended to read as 
                follows:
    ``(h) Adjustments for Inflation.--
            ``(1) Dollar limitations.--In the case of a taxable year 
        beginning after December 31, 2005, each of the dollar amounts 
        in subsections (a)(3) and (b)(1) shall be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) 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 2004' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any amount as increased under the preceding sentence is not 
        a multiple of $10, such amount shall be rounded to the nearest 
        multiple of $10.
            ``(2) Income limitation.--In the case of a taxable year 
        beginning after December 31, 2002, the dollar amount in 
        subsection (b)(2)(A)(i) shall be increased by an amount equal 
        to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) 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 2001' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any amount as increased under the preceding sentence is not 
        a multiple of $10, such amount shall be rounded to the nearest 
        multiple of $10.''.
            (2) Adoption assistance programs.--
                    (A) In general.--Paragraph (1) of section 137(b) of 
                the Internal Revenue Code of 1986 (relating to dollar 
                limitation) is amended by striking ``$10,000'' and 
                inserting ``$15,000''.
                    (B) Child with special needs.--Paragraph (2) of 
                section 137(a) of such Code (relating to $10,000 
                exclusion for adoption of child with special needs 
                regardless of expenses) is amended--
                            (i) in the text by striking ``$10,000'' and 
                        inserting ``$15,000'', and
                            (ii) in the heading by striking ``$10,000'' 
                        and inserting ``$15,000''.
                    (C) Conforming amendment to inflation adjustment.--
                Subsection (f) of section 137 of such Code (relating to 
                adjustments for inflation) is amended to read as 
                follows:
    ``(f) Adjustments for Inflation.--
            ``(1) Dollar limitations.--In the case of a taxable year 
        beginning after December 31, 2005, each of the dollar amounts 
        in subsections (a)(2) and (b)(1) shall be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) 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 2004' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any amount as increased under the preceding sentence is not 
        a multiple of $10, such amount shall be rounded to the nearest 
        multiple of $10.
            ``(2) Income limitation.--In the case of a taxable year 
        beginning after December 31, 2002, the dollar amount in 
        subsection (b)(2)(A)(i) shall be increased by an amount equal 
        to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) 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 2001' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any amount as increased under the preceding sentence is not 
        a multiple of $10, such amount shall be rounded to the nearest 
        multiple of $10.''.
    (b) Credit Made Refundable.--
            (1) Credit moved to subpart relating to refundable 
        credits.--The Internal Revenue Code of 1986 is amended--
                    (A) by redesignating section 36 as section 37,
                    (B) by redesignating section 23, as amended by 
                subsection (a), as section 36, and
                    (C) by moving section 36 (as so redesignated) from 
                subpart A of part IV of subchapter A of chapter 1 to 
                the location immediately before section 37 (as so 
                redesignated) in subpart C of part IV of subchapter A 
                of chapter 1.
            (2) Conforming amendments.--
                    (A) Section 24(b)(3)(B) of such Code is amended by 
                striking ``and sections 23'' and inserting ``section''.
                    (B) Section 25(e)(1)(C) of such Code is amended by 
                striking ``23,''.
                    (C) Section 25B(g)(2) of such Code is amended by 
                striking ``and section 23''.
                    (D) Section 137 of such Code is amended--
                            (i) in subsection (d) by striking ``section 
                        23(d)'' and inserting ``section 36(d)'', and
                            (ii) in subsection (e) by striking 
                        ``section 23'' and inserting ``section 36''.
                    (E) Section 1400C(d) of such Code is amended by 
                striking ``23, 24,'' and inserting ``24''.
                    (F) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of such Code of 1986 is 
                amended by striking the item relating to section 23.
                    (G) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``or 36'' 
                after ``section 35''.
                    (H) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of the Internal Revenue 
                Code of 1986 is amended by striking the last item and 
                inserting the following new items:

``Sec. 36. Adoption expenses.
``Sec. 37. Overpayments of tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 3. INCREASE IN ADOPTION INCENTIVE PAYMENTS.

    (a) In General.--Section 473A(d)(1) of the Social Security Act (42 
U.S.C. 673a(d)(1)) is amended--
            (1) in subparagraph (A), by striking ``$4,000'' and 
        inserting ``$8,000'';
            (2) in subparagraph (B), by striking ``$2,000'' and 
        inserting ``$8,000''; and
            (3) in subparagraph (C), by striking ``$4,000'' and 
        inserting ``$8,000''.
    (b) Increased Program Funding.--Section 473A(h)(1) of such Act (42 
U.S.C. 673a(h)(1)) is amended--
            (1) in subparagraph (C), by striking ``and'';
            (2) in subparagraph (D), by striking ``through 2008.'' and 
        inserting ``and 2005; and''; and
            (3) by adding at the end the following:
                    ``(E) $86,000,000 for each of fiscal years 2006 
                through 2008.''.
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