I
107TH CONGRESS
1ST SESSION
H. R. 622
To amend the Internal Revenue Code of 1986 to expand the adoption credit,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 14, 2001
Mr. DEMINT (for himself, Mr. OBERSTAR, Mr. BACHUS, Mr. KING, Ms.
PRYCE of Ohio, Mr. ACKERMAN, Mr. ADERHOLT, Mr. AKIN, Mr. AN-
DREWS, Mr. ARMEY, Mr. BAIRD, Ms. BALDWIN, Mr. BARRETT, Mr.
BARTLETT of Maryland, Mr. BARTON of Texas, Mr. BEREUTER, Mrs.
BIGGERT, Mr. BILIRAKIS, Mr. BLAGOJEVICH, Mr. BLUNT, Mr. BOEH-
LERT, Mr. BONIOR, Mrs. BONO, Mr. BOUCHER, Mr. BRADY of Texas,
Ms. BROWN of Florida, Mr. BROWN of South Carolina, Mr. BRYANT, Mr.
BURR of North Carolina, Mr. BURTON of Indiana, Mr. BUYER, Mr. CAL-
LAHAN, Mr. CAMP, Mr. CANNON, Mr. CANTOR, Mr. CHABOT, Mr.
CHAMBLISS, Mr. COOKSEY, Mr. COSTELLO, Mr. COX, Mr. COYNE, Mr.
CRAMER, Mr. CRANE, Mrs. CUBIN, Mr. CUNNINGHAM, Mrs. JO ANN
DAVIS of Virginia, Mr. THOMAS M. DAVIS of Virginia, Mr. DELAHUNT,
Mr. DELAY, Mr. DOOLITTLE, Mr. DOYLE, Mr. DUNCAN, Mr. EHLERS,
Mrs. EMERSON, Mr. ENGLISH, Mr. EVANS, Mr. EVERETT, Mr. FLAKE,
Mr. FLETCHER, Mr. FOLEY, Mr. FOSSELLA, Mr. FRANK, Mr. FRELING-
HUYSEN, Mr. FROST, Mr. GIBBONS, Mr. GILLMOR, Mr. GILMAN, Mr.
GOODE, Mr. GORDON, Mr. GRAHAM, Ms. GRANGER, Mr. GREEN of
Texas, Mr. GREENWOOD, Mr. GRUCCI, Mr. GUTKNECHT, Mr. HALL of
Ohio, Mr. HANSEN, Ms. HART, Mr. HAYES, Mr. HAYWORTH, Mr. HOB-
SON, Mr. HOLDEN, Mr. HORN, Mr. HOSTETTLER, Mr. HUTCHINSON, Mr.
INSLEE, Mr. ISAKSON, Mr. JENKINS, Mrs. JOHNSON of Connecticut, Mr.
SAM JOHNSON of Texas, Mrs. JONES of Ohio, Mr. KELLER, Mrs. KELLY,
Mr. KERNS, Mr. KIND, Mr. KINGSTON, Mr. KNOLLENBERG, Mr. KOLBE,
Mr. KUCINICH, Mr. LAHOOD, Mr. LARSON
of Connecticut, Mr.
LATOURETTE, Mr. LEWIS of Kentucky, Mr. LIPINSKI, Mr. LOBIONDO,
Mr. LUCAS of Oklahoma, Mrs. MALONEY of New York, Mrs. MCCARTHY
of New York, Ms. MCCARTHY of Missouri, Mr. MCHUGH, Mr. MCINNIS,
Mr. MCINTYRE, Mr. MCNULTY, Mr. MEEHAN, Mr. GARY MILLER of
California, Mrs. MINK of Hawaii, Mr. MOORE, Mr. MORAN of Virginia,
Mrs. MORELLA, Mrs. MYRICK, Mr. NADLER, Mr. NEAL of Massachusetts,
Mr. NEY, Mrs. NORTHUP, Mr. OSBORNE, Mr. OXLEY, Mr. PASCRELL,
Mr. PAUL, Mr. PENCE, Mr. PICKERING, Mr. PITTS, Mr. PLATTS, Mr.
PRICE of North Carolina, Mr. PUTNAM, Mr. REYNOLDS, Mr. RILEY, Ms.
RIVERS, Mr. ROEMER, Mr. ROGERS of Michigan, Mrs. ROUKEMA, Mr.
RYAN of Wisconsin, Mr. RYUN of Kansas, Mr. SANDERS, Mr. SCHAFFER,
Ms. SCHAKOWSKY, Mr. SCHROCK, Mr. SCOTT, Mr. SENSENBRENNER, Mr.
SHADEGG, Mr. SHAYS, Mr. SHERWOOD, Mr. SHIMKUS, Mr. SIMMONS,
Mr. SIMPSON, Mr. SKEEN, Mr. SKELTON, Mr. SMITH of New Jersey, Mr.
SMITH of Michigan, Mr. SOUDER, Mr. SPENCE, Mr. STEARNS, Mr. STU-
PAK, Mr. SWEENEY, Mr. TANCREDO, Mr. TAUZIN, Mr. TERRY, Mrs.
THURMAN, Mr. TIAHRT, Mr. TIBERI, Mr. TOOMEY, Mr. UNDERWOOD,
Mr. VITTER, Mr. WALDEN of Oregon, Mr. WALSH, Mr. WAXMAN, Mr.
WELDON of Florida, Mr. WHITFIELD, Mr. WICKER, Mr. WOLF, Mr.
BAKER, Mr. ALLEN, Mr. WAMP, Mr. LARSEN of Washington, Mr.
ISTOOK, Mr. CRENSHAW, Ms. CAPITO, Mr. UDALL of Colorado, Mr.
BACA, and Ms. WOOLSEY) introduced the following bill; which was re-
ferred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to expand
the adoption credit, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Hope for Children
Act’’.
SEC. 2. EXPANSION OF ADOPTION CREDIT AND ADOPTION
ASSISTANCE PROGRAMS.
(a) IN GENERAL.—
(1) ADOPTION
CREDIT.—Section 23(a)(1) of
the Internal Revenue Code of 1986 (relating to al-
lowance of credit) is amended to read as follows:
‘‘(1) IN
GENERAL.—In the case of an indi-
vidual, there shall be allowed as a credit against the
tax imposed by this chapter—
‘‘(A) in the case of an adoption of a child
other than a child with special needs, the
amount of the qualified adoption expenses paid
or incurred by the taxpayer, and
‘‘(B) in the case of an adoption of a child
with special needs, $10,000.’’.
(2) ADOPTION
ASSISTANCE
PROGRAMS.—Sec-
tion 137(a) of such Code (relating to adoption as-
sistance programs) is amended to read as follows:
‘‘(a) IN GENERAL.—Gross income of an employee
does not include amounts paid or expenses incurred by the
employer for adoption expenses in connection with the
adoption of a child by an employee if such amounts are
furnished pursuant to an adoption assistance program.
The amount of the exclusion shall be—
‘‘(1) in the case of an adoption of a child other
than a child with special needs, the amount of the
qualified adoption expenses paid or incurred by the
taxpayer, and
‘‘(2) in the case of an adoption of a child with
special needs, $10,000.’’.
(b) DOLLAR LIMITATIONS.—
(1) 
DOLLAR
AMOUNT
OF
ALLOWED
EX-
PENSES.—
(A) 
ADOPTION
EXPENSES.—Section
23(b)(1) of the Internal Revenue Code of 1986
(relating to allowance of credit) is amended—
(i) by striking ‘‘$5,000’’ and inserting
‘‘$10,000’’,
(ii) by striking ‘‘($6,000, in the case
of a child with special needs)’’, and
(iii) by striking ‘‘subsection (a)’’ and
inserting ‘‘subsection (a)(1)(A)’’.
(B) ADOPTION ASSISTANCE PROGRAMS.—
Section 137(b)(1) of such Code (relating to dol-
lar limitations for adoption assistance pro-
grams) is amended—
(i) by striking ‘‘$5,000’’ and inserting
‘‘$10,000’’, and
(ii) by striking ‘‘($6,000, in the case
of a child with special needs)’’, and
(iii) by striking ‘‘subsection (a)’’ and
inserting ‘‘subsection (a)(1)’’.
(2) PHASE-OUT LIMITATION.—
(A) ADOPTION EXPENSES.—Clause (i) of
section 23(b)(2)(A) of such Code (relating to
income limitation) is amended by striking
‘‘$75,000’’ and inserting ‘‘$150,000’’.
(B) ADOPTION ASSISTANCE PROGRAMS.—
Section 137(b)(2)(A) of such Code (relating to
income limitation) is amended by striking
‘‘$75,000’’ and inserting ‘‘$150,000’’.
(c) YEAR CREDIT ALLOWED.—Section 23(a)(2) of
the Internal Revenue Code of 1986 (relating to year credit
allowed) is amended by adding at the end the following
new flush sentence:
‘‘In the case of the adoption of a child with special
needs, the credit allowed under paragraph (1) shall
be allowed for the taxable year in which the adoption
becomes final.’’.
(d) REPEAL OF SUNSET PROVISIONS.—
(1) CHILDREN
WITHOUT
SPECIAL
NEEDS.—
Paragraph (2) of section 23(d) of the Internal Rev-
enue Code of 1986 (relating to definition of eligible
child) is amended to read as follows:
‘‘(2) ELIGIBLE
CHILD.—The term ‘eligible
child’ means any individual who—
‘‘(A) has not attained age 18, or
‘‘(B) is physically or mentally incapable of
caring for himself.’’.
(2) ADOPTION
ASSISTANCE
PROGRAMS.—Sec-
tion 137 of such Code (relating to adoption assist-
ance programs) is amended by striking subsection
(f).
(e) ADJUSTMENT OF DOLLAR AND INCOME LIMITA-
TIONS FOR INFLATION.—
(1) ADOPTION CREDIT.—Section 23 of the In-
ternal Revenue Code of 1986 (relating to adoption
expenses) is amended by redesignating subsection
(h) as subsection (i) and by inserting after sub-
section (g) the following new subsection:
‘‘(h) ADJUSTMENTS FOR INFLATION.—In the case of
a taxable year beginning after December 31, 2002, each
of the dollar amounts in subsection (a)(1)(B) and para-
graphs (1) and (2)(A)(i) of subsection (b) shall be in-
creased by an amount equal to—
‘‘(1) such dollar amount, multiplied by
‘‘(2) 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 sub-
paragraph (B) thereof.’’.
(2) ADOPTION
ASSISTANCE
PROGRAMS.—Sec-
tion 137 of such Code (relating to adoption assist-
ance programs), as amended by subsection (d), is
amended by adding at the end the following new
subsection:
‘‘(f) ADJUSTMENTS FOR INFLATION.—In the case of
a taxable year beginning after December 31, 2002, each
of the dollar amounts in subsection (a)(2) and paragraphs
(1) and (2)(A) of subsection (b) shall be increased by an
amount equal to—
‘‘(1) such dollar amount, multiplied by
‘‘(2) 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 sub-
paragraph (B) thereof.’’.
(f) LIMITATION BASED ON AMOUNT OF TAX.—
(1) IN GENERAL.—Section 23(c) of the Internal
Revenue Code of 1986 (relating to carryforwards of
unused credit) is amended by striking ‘‘the limita-
tion 
imposed’’ 
and 
all 
that 
follows 
through
‘‘1400C)’’ and inserting ‘‘the applicable tax limita-
tion’’.
(2) APPLICABLE
TAX
LIMITATION.—Section
23(d) of such Code (relating to definitions) is
amended by adding at the end the following new
paragraph:
‘‘(4) APPLICABLE TAX LIMITATION.—The term
‘applicable tax limitation’ means the sum of—
‘‘(A) the taxpayer’s regular tax liability for
the taxable year, reduced (but not below zero)
by the sum of the credits allowed by sections
21, 22, 24 (other than the amount of the in-
crease under subsection (d) thereof), 25, and
25A, and
‘‘(B) the tax imposed by section 55 for
such taxable year.’’.
(3) CONFORMING AMENDMENTS.—
(A) Section 26(a) of such Code (relating to
limitation based on amount of tax) is amended
by inserting ‘‘(other than section 23)’’ after ‘‘al-
lowed by this subpart’’.
(B) Section 53(b)(1) of such Code (relat-
ing to minimum tax credit) is amended by in-
serting ‘‘reduced by the aggregate amount
taken into account under section 23(d)(3)(B)
for all such prior taxable years,’’ after ‘‘1986,’’.
(g) CREDIT RENAMED THE TOM BLILEY ADOPTION
CREDIT.—
(1) The heading of section 23 of such Code is
amended to read as follows:
‘‘SEC. 23. TOM BLILEY ADOPTION CREDIT.’’.
(2) The item relating to section 23 in the table
of sections for subpart A of part IV of subchapter
A of chapter 1 of such Code is amended to read as
follows:
‘‘Sec. 23. Tom Bliley adoption credit.’’.
(h) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
Æ