I 
112TH CONGRESS 
2D SESSION 
H. R. 4373 
To amend the Internal Revenue Code of 1986 to make permanent the expan-
sion 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 expan-
sion of tax benefits for adoption enacted in 2010. 
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 ‘‘Making Adoption Af-
fordable Act of 2012’’. 
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SEC. 2. EXPANDED TAX BENEFITS FOR ADOPTION MADE 
PERMANENT. 
(a) EXPANSIONS ENACTED IN 2001 MADE PERMA-
NENT.—Section 901 of the Economic Growth and Tax Re-
lief 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 insert-
ing ‘‘$13,170’’. 
(ii) CHILD WITH SPECIAL NEEDS.— 
Paragraph (3) of section 23(a) of such 
Code (relating to $10,000 credit for adop-
tion 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’’. 
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(iii) CONFORMING AMENDMENT TO IN-
FLATION ADJUSTMENT.—Subsection (h) of 
section 23 of such Code (relating to adjust-
ments 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 deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2009’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as increased under the preceding sen-
tence 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 in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
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‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2001’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as increased under the preceding sen-
tence 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 in-
serting ‘‘$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 regard-
less 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’’. 
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(iii) CONFORMING AMENDMENT TO IN-
FLATION ADJUSTMENT.—Subsection (f) of 
section 137 of such Code (relating to ad-
justments 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 deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2009’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as increased under the preceding sen-
tence 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 in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
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‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2001’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as increased under the preceding sen-
tence 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 RELAT-
ING 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 re-
designated) 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,’’. 
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(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— 
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(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,’’ be-
fore ‘‘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 strik-
ing 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 insert-
ing ‘‘36C,’’ after ‘‘36B,’’. 
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(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 insert-
ing 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 pro-
vision 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 Reau-
thorization, and Job Creation Act of 2010. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2011. 
Æ 
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