I 

112TH CONGRESS 

2D SESSION H. R. 4373 

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. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 17, 2012 

Mr. BRALEY of Iowa 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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Making Adoption Af5 fordable Act of 2012’’. 


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1 SEC. 2. EXPANDED TAX BENEFITS FOR ADOPTION MADE 

2 PERMANENT. 

3 (a) EXPANSIONS ENACTED IN 2001 MADE PERMA4 NENT.—Section 901 of the Economic Growth and Tax Re5 lief Reconciliation Act of 2001 shall not apply to the 

6 amendments made by section 202 of such Act. 

7 (b) EXPANSIONS ENACTED IN 2010 PERMANENTLY

8 REINSTATED.— 

9 (1) INCREASE IN DOLLAR LIMITATION.— 

10 (A) ADOPTION CREDIT.— 

11 (i) IN GENERAL.—Paragraph (1) of 

12 section 23(b) of the Internal Revenue Code 

13 of 1986 (relating to dollar limitation) is 

14 amended by striking ‘‘$10,000’’ and insert15 ing ‘‘$13,170’’. 

16 (ii) CHILD WITH SPECIAL NEEDS.— 

17 Paragraph (3) of section 23(a) of such 

18 Code (relating to $10,000 credit for adop19 tion of child with special needs regardless 

20 of expenses) is amended— 

21 (I) in the text by striking 

22 ‘‘$10,000’’ and inserting ‘‘$13,170’’, 

23 and 

24 (II) in the heading by striking 

25 ‘‘$10,000’’ and inserting ‘‘$13,170’’. 


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1 (iii) CONFORMING AMENDMENT TO IN2 FLATION ADJUSTMENT.—Subsection (h) of 

3 section 23 of such Code (relating to adjust4 ments for inflation) is amended to read as 

5 follows: 

6 ‘‘(h) ADJUSTMENTS FOR INFLATION.— 

7 ‘‘(1) DOLLAR LIMITATIONS.—In the case of a 

8 taxable year beginning after December 31, 2010, 

9 each of the dollar amounts in subsections (a)(3) and 

10 (b)(1) shall be increased by an amount equal to— 

11 ‘‘(A) such dollar amount, multiplied by 

12 ‘‘(B) the cost-of-living adjustment deter13 mined under section 1(f)(3) for the calendar 

14 year in which the taxable year begins, deter15 mined by substituting ‘calendar year 2009’ for 

16 ‘calendar year 1992’ in subparagraph (B) 

17 thereof. 

18 If any amount as increased under the preceding sen19 tence is not a multiple of $10, such amount shall be 

20 rounded to the nearest multiple of $10. 

21 ‘‘(2) INCOME LIMITATION.—In the case of a 

22 taxable year beginning after December 31, 2002, the 

23 dollar amount in subsection (b)(2)(A)(i) shall be in24 creased by an amount equal to— 

25 ‘‘(A) such dollar amount, multiplied by 


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1 ‘‘(B) the cost-of-living adjustment deter2 mined under section 1(f)(3) for the calendar 

3 year in which the taxable year begins, deter4 mined by substituting ‘calendar year 2001’ for 

5 ‘calendar year 1992’ in subparagraph (B) 

6 thereof. 

7 If any amount as increased under the preceding sen8 tence is not a multiple of $10, such amount shall be 

9 rounded to the nearest multiple of $10.’’. 

10 (B) ADOPTION ASSISTANCE PROGRAMS.— 

11 (i) IN GENERAL.—Paragraph (1) of 

12 section 137(b) of the Internal Revenue 

13 Code of 1986 (relating to dollar limitation) 

14 is amended by striking ‘‘$10,000’’ and in15 serting ‘‘$13,170’’. 

16 (ii) CHILD WITH SPECIAL NEEDS.— 

17 Paragraph (2) of section 137(a) of such 

18 Code (relating to $10,000 exclusion for 

19 adoption of child with special needs regard20 less of expenses) is amended— 

21 (I) in the text by striking 

22 ‘‘$10,000’’ and inserting ‘‘$13,170’’, 

23 and 

24 (II) in the heading by striking 

25 ‘‘$10,000’’ and inserting ‘‘$13,170’’. 


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1 (iii) CONFORMING AMENDMENT TO IN2 FLATION ADJUSTMENT.—Subsection (f) of 

3 section 137 of such Code (relating to ad4 justments for inflation) is amended to read 

5 as follows: 

6 ‘‘(f) ADJUSTMENTS FOR INFLATION.— 

7 ‘‘(1) DOLLAR LIMITATIONS.—In the case of a 

8 taxable year beginning after December 31, 2010, 

9 each of the dollar amounts in subsections (a)(2) and 

10 (b)(1) shall be increased by an amount equal to— 

11 ‘‘(A) such dollar amount, multiplied by 

12 ‘‘(B) the cost-of-living adjustment deter13 mined under section 1(f)(3) for the calendar 

14 year in which the taxable year begins, deter15 mined by substituting ‘calendar year 2009’ for 

16 ‘calendar year 1992’ in subparagraph (B) 

17 thereof. 

18 If any amount as increased under the preceding sen19 tence is not a multiple of $10, such amount shall be 

20 rounded to the nearest multiple of $10. 

21 ‘‘(2) INCOME LIMITATION.—In the case of a 

22 taxable year beginning after December 31, 2002, the 

23 dollar amount in subsection (b)(2)(A) shall be in24 creased by an amount equal to— 

25 ‘‘(A) such dollar amount, multiplied by 


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1 ‘‘(B) the cost-of-living adjustment deter2 mined under section 1(f)(3) for the calendar 

3 year in which the taxable year begins, deter4 mined by substituting ‘calendar year 2001’ for 

5 ‘calendar year 1992’ in subparagraph (B) 

6 thereof. 

7 If any amount as increased under the preceding sen8 tence is not a multiple of $10, such amount shall be 

9 rounded to the nearest multiple of $10.’’. 

10 (2) CREDIT MADE REFUNDABLE.— 

11 (A) CREDIT MOVED TO SUBPART RELAT12 ING TO REFUNDABLE CREDITS.—The Internal 

13 Revenue Code of 1986 is amended— 

14 (i) by redesignating section 23, as 

15 amended by subsection (a), as section 36C, 

16 and 

17 (ii) by moving section 36C (as so re18 designated) from subpart A of part IV of 

19 subchapter A of chapter 1 to the location 

20 immediately before section 37 in subpart C 

21 of part IV of subchapter A of chapter 1. 

22 (B) CONFORMING AMENDMENTS.— 

23 (i) Section 24(b)(3)(B) of such Code 

24 is amended by striking ‘‘23,’’. 


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1 (ii) Section 25(e)(1)(C) of such Code 

2 is amended by striking ‘‘23,’’ both places it 

3 appears. 

4 (iii) Section 25A(i)(5)(B) of such 

5 Code is amended by striking ‘‘23, 25D,’’ 

6 and inserting ‘‘25D’’. 

7 (iv) Section 25B(g)(2) of such Code is 

8 amended by striking ‘‘23,’’. 

9 (v) Section 26(a)(1) of such Code is 

10 amended by striking ‘‘23,’’. 

11 (vi) Section 30(c)(2)(B)(ii) of such 

12 Code is amended by striking ‘‘23, 25D,’’ 

13 and inserting ‘‘25D’’. 

14 (vii) Section 30B(g)(2)(B)(ii) of such 

15 Code is amended by striking ‘‘23,’’. 

16 (viii) Section 30D(c)(2)(B)(ii) of such 

17 Code is amended by striking ‘‘sections 23 

18 and’’ and inserting ‘‘section’’. 

19 (ix) Section 36C of such Code, as so 

20 redesignated, is amended— 

21 (I) by striking paragraph (4) of 

22 subsection (b), and 

23 (II) by striking subsection (c). 

24 (x) Section 137 of such Code is 

25 amended— 


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1 (I) by striking ‘‘section 23(d)’’ in 

2 subsection (d) and inserting ‘‘section 

3 36C(d)’’, and 

4 (II) by striking ‘‘section 23’’ in 

5 subsection (e) and inserting ‘‘section 

6 36C’’. 

7 (xi) Section 904(i) of such Code is 

8 amended by striking ‘‘23,’’. 

9 (xii) Section 1016(a)(26) is amended 

10 by striking ‘‘23(g)’’ and inserting 

11 ‘‘36C(g)’’. 

12 (xiii) Section 1400C(d) of such Code 

13 is amended by striking ‘‘23,’’. 

14 (xiv) Section 6211(b)(4)(A) of such 

15 Code is amended by inserting ‘‘36C,’’ be16 fore ‘‘53(e)’’. 

17 (xv) The table of sections for subpart 

18 A of part IV of subchapter A of chapter 1 

19 of such Code of 1986 is amended by strik20 ing the item relating to section 23. 

21 (xvi) Paragraph (2) of section 

22 1324(b) of title 31, United States Code, as 

23 amended by this Act, is amended by insert24 ing ‘‘36C,’’ after ‘‘36B,’’. 


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1 (xvii) The table of sections for subpart 

2 C of part IV of subchapter A of chapter 1 

3 of the Internal Revenue Code of 1986, as 

4 amended by this Act, is amended by insert5 ing after the item relating to section 36B 

6 the following new item: 

‘‘Sec. 36C. Adoption expenses.’’. 

7 (3) COORDINATION WITH SUNSET.—Each 

8 amendment made by this subsection to another pro9 vision of law is to such provision of law as amended 

10 by section 10909(c) of the Patient Protection and 

11 Affordable Care Act, as amended by section 101(b) 

12 of the Tax Relief, Unemployment Insurance Reau13 thorization, and Job Creation Act of 2010. 

14 (4) EFFECTIVE DATE.—The amendments made 

15 by this subsection shall apply to taxable years begin16 ning after December 31, 2011. 

Æ 


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