H.R. 4373 (112th): Making Adoption Affordable Act of 2012

112th Congress, 2011–2013. Text as of Apr 17, 2012 (Introduced).

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I

112th CONGRESS

2d Session

H. R. 4373

IN THE HOUSE OF REPRESENTATIVES

April 17, 2012

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 make permanent the expansion of tax benefits for adoption enacted in 2001 and to permanently reinstate the expansion of tax benefits for adoption enacted in 2010.

1.

Short title

This Act may be cited as the Making Adoption Affordable Act of 2012.

2.

Expanded tax benefits for adoption made permanent

(a)

Expansions enacted in 2001 made permanent

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to the amendments made by section 202 of such Act.

(b)

Expansions enacted in 2010 permanently reinstated

(1)

Increase in dollar limitation

(A)

Adoption credit

(i)

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 $13,170.

(ii)

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 $13,170, and

(II)

in the heading by striking $10,000 and inserting $13,170.

(iii)

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, 2010, 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 2009 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)

Adoption assistance programs

(i)

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 $13,170.

(ii)

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 $13,170, and

(II)

in the heading by striking $10,000 and inserting $13,170.

(iii)

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, 2010, 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 2009 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) 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)

Credit made refundable

(A)

Credit moved to subpart relating to refundable credits

The Internal Revenue Code of 1986 is amended—

(i)

by redesignating section 23, as amended by subsection (a), as section 36C, and

(ii)

by moving section 36C (as so redesignated) from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1.

(B)

Conforming amendments

(i)

Section 24(b)(3)(B) of such Code is amended by striking 23,.

(ii)

Section 25(e)(1)(C) of such Code is amended by striking 23, both places it appears.

(iii)

Section 25A(i)(5)(B) of such Code is amended by striking 23, 25D, and inserting 25D.

(iv)

Section 25B(g)(2) of such Code is amended by striking 23,.

(v)

Section 26(a)(1) of such Code is amended by striking 23,.

(vi)

Section 30(c)(2)(B)(ii) of such Code is amended by striking 23, 25D, and inserting 25D.

(vii)

Section 30B(g)(2)(B)(ii) of such Code is amended by striking 23,.

(viii)

Section 30D(c)(2)(B)(ii) of such Code is amended by striking sections 23 and and inserting section.

(ix)

Section 36C of such Code, as so redesignated, is amended—

(I)

by striking paragraph (4) of subsection (b), and

(II)

by striking subsection (c).

(x)

Section 137 of such Code is amended—

(I)

by striking section 23(d) in subsection (d) and inserting section 36C(d), and

(II)

by striking section 23 in subsection (e) and inserting section 36C.

(xi)

Section 904(i) of such Code is amended by striking 23,.

(xii)

Section 1016(a)(26) is amended by striking 23(g) and inserting 36C(g).

(xiii)

Section 1400C(d) of such Code is amended by striking 23,.

(xiv)

Section 6211(b)(4)(A) of such Code is amended by inserting 36C, before 53(e).

(xv)

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.

(xvi)

Paragraph (2) of section 1324(b) of title 31, United States Code, as amended by this Act, is amended by inserting 36C, after 36B,.

(xvii)

The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by this Act, is amended by inserting after the item relating to section 36B the following new item:

Sec. 36C. Adoption expenses.

.

(3)

Coordination with sunset

Each amendment made by this subsection to another provision of law is to such provision of law as amended by section 10909(c) of the Patient Protection and Affordable Care Act, as amended by section 101(b) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

(4)

Effective date

The amendments made by this subsection shall apply to taxable years beginning after December 31, 2011.