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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3616 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3616

   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, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 21, 2012

 Ms. Landrieu (for herself, Mr. Cardin, Mr. Blunt, and Mrs. Hutchison) 
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 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, 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. SHORT TITLE.

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

SEC. 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 is 
                        amended by striking ``$10,000'' and inserting 
                        ``$13,170''.
                            (ii) Child with special needs.--Paragraph 
                        (3) of section 23(a) of such Code 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 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 is 
                        amended by striking ``$10,000'' and inserting 
                        ``$13,170''.
                            (ii) Child with special needs.--Paragraph 
                        (2) of section 137(a) of such Code 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 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) of such Code 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 is amended by striking the item relating 
                        to section 23.
                            (xvi) Paragraph (2) of section 1324(b) of 
                        title 31, United States Code, 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 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.
    (c) Adoption of GAO Recommendations.--The Secretary of the Treasury 
or the Secretary's designee shall--
            (1) ensure that the Internal Revenue Service communications 
        efforts about the adoption credit under section 36C of the 
        Internal Revenue Code of 1986 specifically include State and 
        local adoption officials, and clarify acceptable documentation 
        for the certification on special needs adoptees, and
            (2) determine whether requesting documentation in cases 
        where no documentation is provided before initiating an audit 
        would reduce the number of audits without significantly 
        delaying refunds and, if so, implement such a strategy for the 
        2012 taxable year filing season.
                                 <all>
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