I
106TH CONGRESS
1ST SESSION
H. R. 531
To amend the Internal Revenue Code of 1986 to increase the amount allow-
able for qualified adoption expenses, to permanently extend the credit
for adoption expenses, and to adjust the limitations on such credit
for inflation.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 3, 1999
Mr. BLILEY 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 increase
the amount allowable for qualified adoption expenses,
to permanently extend the credit for adoption expenses,
and to adjust the limitations on such credit for inflation.
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. ADOPTION EXPENSES.
(a) INCREASE IN AMOUNTS ALLOWED.—
(1) 
DOLLAR
AMOUNT
OF
ALLOWED
EX-
PENSES.—Paragraph (1) of section 23(b) of the In-
ternal Revenue Code of 1986 (relating to dollar limi-
tation) is amended by striking ‘‘$5,000’’ and all that
follows and inserting ‘‘$10,000.’’.
(2) PHASE-OUT LIMITATION.—Clause (i) of sec-
tion 23(b)(2)(A) of such Code (relating to income
limitation) is amended by striking ‘‘$75,000’’ and
inserting ‘‘$150,000’’.
(b) REPEAL OF SUNSET ON CHILDREN WITHOUT
SPECIAL NEEDS.—
(1) IN
GENERAL.—Paragraph (2) of section
23(d) of such Code (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) CONFORMING AMENDMENT.—Subsection (d)
of section 23 of such Code (relating to definitions)
is amended by striking paragraph (3).
(c) ADJUSTMENT OF DOLLAR AND INCOME LIMITA-
TIONS
FOR INFLATION.—Section 23 of such Code is
amended by redesignating subsection (h) as subsection (i)
and by inserting after subsection (g) the following new
subsection:
‘‘(h) ADJUSTMENTS FOR INFLATION.—In the case of
a taxable year beginning after December 31, 2000, each
of the dollar amounts in subsections (b)(1) and
(b)(2)(A)(i) 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 1999’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof.’’.
(d) LIMITATION BASED ON AMOUNT OF TAX.—
(1) IN GENERAL.—Subsection (c) of section 23
of such Code is amended by striking ‘‘the limitation
imposed by section 26(a) for such taxable year re-
duced by the sum of the credits allowable under this
subpart (other than this section and section
1400C)’’ and inserting ‘‘the applicable tax limita-
tion’’.
(2) APPLICABLE TAX LIMITATION.—Subsection
(d) of section 23 of such Code (as amended by sub-
section (b) of this section) is further amended add-
ing at the end the following new paragraph:
‘‘(3) 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) Subsection (a) of section 26 of such
Code (relating to limitation based on amount of
tax) is amended by inserting ‘‘(other than sec-
tion 23)’’ after ‘‘allowed by this subpart’’.
(B) Paragraph (1) of section 53(b) of such
Code (relating to minimum tax credit) is
amended by inserting ‘‘reduced by the aggre-
gate amount taken into account under section
23(d)(3)(B) for all such prior taxable years,’’
after ‘‘1986,’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1998.
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