I 

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. 

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 ‘‘Childhood Adoption 

5 Act of 2005’’. 
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1 SEC. 2. INCREASE IN ALLOWABLE EXPENSES FOR ADOP2 TION; ADOPTION CREDIT MADE REFUND3 ABLE. 

4 (a) INCREASE IN DOLLAR LIMITATION.— 

5 (1) ADOPTION CREDIT.— 

6 (A) IN GENERAL.—Paragraph (1) of sec7 tion 23(b) of the Internal Revenue Code of 

8 1986 (relating to dollar limitation) is amended 

9 by striking ‘‘$10,000’’ and inserting ‘‘$15,000’’. 

10 (B) CHILD WITH SPECIAL NEEDS.—Para11 graph (3) of section 23(a) of such Code (relat12 ing to $10,000 credit for adoption of child with 

13 special needs regardless of expenses) is amend14 ed— 

15 (i) in the text by striking ‘‘$10,000’’ 

16 and inserting ‘‘$15,000’’, and 

17 (ii) in the heading by striking 

18 ‘‘$10,000’’ and inserting ‘‘$15,000’’. 

19 (C) CONFORMING AMENDMENT TO INFLA20 TION ADJUSTMENT.—Subsection (h) of section 

21 23 of such Code (relating to adjustments for in22 flation) is amended to read as follows: 

23 ‘‘(h) ADJUSTMENTS FOR INFLATION.— 

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

25 taxable year beginning after December 31, 2005, 
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1 each of the dollar amounts in subsections (a)(3) and 

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

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

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar 

6 year in which the taxable year begins, deter7 mined by substituting ‘calendar year 2004’ for 

8 ‘calendar year 1992’ in subparagraph (B) 

9 thereof. 

10 If any amount as increased under the preceding sen11 tence is not a multiple of $10, such amount shall be 

12 rounded to the nearest multiple of $10. 

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

14 taxable year beginning after December 31, 2002, the 

15 dollar amount in subsection (b)(2)(A)(i) shall be in16 creased by an amount equal to— 

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

18 ‘‘(B) the cost-of-living adjustment deter19 mined under section 1(f)(3) for the calendar 

20 year in which the taxable year begins, deter21 mined by substituting ‘calendar year 2001’ for 

22 ‘calendar year 1992’ in subparagraph (B) 

23 thereof. 
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1 If any amount as increased under the preceding sen2 tence is not a multiple of $10, such amount shall be 

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

4 (2) ADOPTION ASSISTANCE PROGRAMS.— 

5 (A) IN GENERAL.—Paragraph (1) of sec6 tion 137(b) of the Internal Revenue Code of 

7 1986 (relating to dollar limitation) is amended 

8 by striking ‘‘$10,000’’ and inserting ‘‘$15,000’’. 

9 (B) CHILD WITH SPECIAL NEEDS.—Para10 graph (2) of section 137(a) of such Code (relat11 ing to $10,000 exclusion for adoption of child 

12 with special needs regardless of expenses) is 

13 amended— 

14 (i) in the text by striking ‘‘$10,000’’ 

15 and inserting ‘‘$15,000’’, and 

16 (ii) in the heading by striking 

17 ‘‘$10,000’’ and inserting ‘‘$15,000’’. 

18 (C) CONFORMING AMENDMENT TO INFLA19 TION ADJUSTMENT.—Subsection (f) of section 

20 137 of such Code (relating to adjustments for 

21 inflation) is amended to read as follows: 

22 ‘‘(f) ADJUSTMENTS FOR INFLATION.— 

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

24 taxable year beginning after December 31, 2005, 
5 

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

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

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

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar 

6 year in which the taxable year begins, deter7 mined by substituting ‘calendar year 2004’ for 

8 ‘calendar year 1992’ in subparagraph (B) 

9 thereof. 

10 If any amount as increased under the preceding sen11 tence is not a multiple of $10, such amount shall be 

12 rounded to the nearest multiple of $10. 

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

14 taxable year beginning after December 31, 2002, the 

15 dollar amount in subsection (b)(2)(A)(i) shall be in16 creased by an amount equal to— 

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

18 ‘‘(B) the cost-of-living adjustment deter19 mined under section 1(f)(3) for the calendar 

20 year in which the taxable year begins, deter21 mined by substituting ‘calendar year 2001’ for 

22 ‘calendar year 1992’ in subparagraph (B) 

23 thereof. 
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1 If any amount as increased under the preceding sen2 tence is not a multiple of $10, such amount shall be 

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

4 (b) CREDIT MADE REFUNDABLE.— 

5 (1) CREDIT MOVED TO SUBPART RELATING TO

6 REFUNDABLE CREDITS.—The Internal Revenue 

7 Code of 1986 is amended— 

8 (A) by redesignating section 36 as section 

9 37, 

10 (B) by redesignating section 23, as amend11 ed by subsection (a), as section 36, and 

12 (C) by moving section 36 (as so redesig13 nated) from subpart A of part IV of subchapter 

14 A of chapter 1 to the location immediately be15 fore section 37 (as so redesignated) in subpart 

16 C of part IV of subchapter A of chapter 1. 

17 (2) CONFORMING AMENDMENTS.— 

18 (A) Section 24(b)(3)(B) of such Code is 

19 amended by striking ‘‘and sections 23’’ and in20 serting ‘‘section’’. 

21 (B) Section 25(e)(1)(C) of such Code is 

22 amended by striking ‘‘23,’’. 

23 (C) Section 25B(g)(2) of such Code is 

24 amended by striking ‘‘and section 23’’. 
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1 (D) Section 137 of such Code is amend2 ed— 

3 (i) in subsection (d) by striking ‘‘sec4 tion 23(d)’’ and inserting ‘‘section 36(d)’’, 

5 and 

6 (ii) in subsection (e) by striking ‘‘sec7 tion 23’’ and inserting ‘‘section 36’’. 

8 (E) Section 1400C(d) of such Code is 

9 amended by striking ‘‘23, 24,’’ and inserting 

10 ‘‘24’’. 

11 (F) The table of sections for subpart A of 

12 part IV of subchapter A of chapter 1 of such 

13 Code of 1986 is amended by striking the item 

14 relating to section 23. 

15 (G) Paragraph (2) of section 1324(b) of 

16 title 31, United States Code, is amended by in17 serting ‘‘or 36’’ after ‘‘section 35’’. 

18 (H) The table of sections for subpart C of 

19 part IV of subchapter A of chapter 1 of the In20 ternal Revenue Code of 1986 is amended by 

21 striking the last item and inserting the fol22 lowing new items: 

‘‘Sec. 36. Adoption expenses. 

‘‘Sec. 37. Overpayments of tax.’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2004. 

4 SEC. 3. INCREASE IN ADOPTION INCENTIVE PAYMENTS. 

5 (a) IN GENERAL.—Section 473A(d)(1) of the Social 

6 Security Act (42 U.S.C. 673a(d)(1)) is amended— 

7 (1) in subparagraph (A), by striking ‘‘$4,000’’ 

8 and inserting ‘‘$8,000’’; 

9 (2) in subparagraph (B), by striking ‘‘$2,000’’ 

10 and inserting ‘‘$8,000’’; and 

11 (3) in subparagraph (C), by striking ‘‘$4,000’’ 

12 and inserting ‘‘$8,000’’. 

13 (b) INCREASED PROGRAM FUNDING.—Section 

14 473A(h)(1) of such Act (42 U.S.C. 673a(h)(1)) is amend15 ed— 

16 (1) in subparagraph (C), by striking ‘‘and’’; 

17 (2) in subparagraph (D), by striking ‘‘through 

18 2008.’’ and inserting ‘‘and 2005; and’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(E) $86,000,000 for each of fiscal years 

21 2006 through 2008.’’. 

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