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may be taken into account in determining the
credit under section 23 of the Internal Revenue
Code of 1986 only to the extent the aggregate
of such expenses does not exceed the applicable
limitation under section 23(b)(1) of such Code
as in effect on the day before the date of the
enactment of the Economic Growth and Tax
Relief Reconciliation Act of 2001.
(2) CORRECTIONS
TO
EXCLUSION
FOR
EM-
PLOYER-PROVIDED ADOPTION ASSISTANCE.—
(A) Subsection (a) of section 137 is
amended to read as follows:
‘‘(a) EXCLUSION.—
‘‘(1) IN GENERAL.—Gross income of an em-
ployee does not include amounts paid or expenses in-
curred by the employer for qualified adoption ex-
penses in connection with the adoption of a child by
an employee if such amounts are furnished pursuant
to an adoption assistance program.
‘‘(2) $10,000
EXCLUSION
FOR
ADOPTION
OF
CHILD WITH SPECIAL NEEDS REGARDLESS OF EX-
PENSES.—In the case of an adoption of a child with
special needs which becomes final during a taxable
year, the qualified adoption expenses with respect to
such adoption for such year shall be increased by an
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amount equal to the excess (if any) of $10,000 over
the actual aggregate qualified adoption expenses
with respect to such adoption during such taxable
year and all prior taxable years.’’
(B) Paragraph (2) of section 137(b) is
amended by striking ‘‘subsection (a)(1)’’ and
inserting ‘‘subsection (a)’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after December 31, 2002; except that the
amendments made by paragraphs (1)(C), (1)(D),
and (2)(B) shall apply to taxable years beginning
after December 31, 2001.
(d) AMENDMENTS RELATED TO SECTION 205 OF
THE ACT.—
(1) Section 45F(d)(4)(B) is amended by strik-
ing ‘‘subpart A, B, or D of this part’’ and inserting
‘‘this chapter or for purposes of section 55’’.
(2) Section 38(b)(15) is amended by striking
‘‘45F’’ and inserting ‘‘45F(a)’’.
(e) AMENDMENTS RELATED TO SECTION 301 OF
THE ACT.—
(1) Section 63(c)(2) is amended—
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(A) in subparagraph (A), by striking ‘‘sub-
paragraph (C)’’ and inserting ‘‘subparagraph
(D)’’,
(B) by striking ‘‘or’’ at the end of subpara-
graph (B),
(C) by redesignating subparagraph (C) as
subparagraph (D), and
(D) by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) one-half of the amount allowable
under subparagraph (A) in the case of a mar-
ried individual filing a separate return, or’’.
(2) Section 63(c)(7) is amended by adding at
the end the following:
‘‘If any amount determined under the preceding
table is not a multiple of $50, such amount shall be
rounded to the next lowest multiple of $50.’’.
(f) AMENDMENT RELATED TO SECTION 401 OF THE
ACT.—Section 530(d)(4)(B)(iv) is amended by striking
‘‘because the taxpayer elected under paragraph (2)(C) to
waive the application of paragraph (2)’’ and inserting ‘‘by
application of paragraph (2)(C)(i)(II)’’.
(g) AMENDMENT RELATED TO SECTION 511 OF THE
ACT.—Section 2511(c) is amended by striking ‘‘taxable
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gift under section 2503,’’ and inserting ‘‘transfer of prop-
erty by gift,’’.
(h) AMENDMENT RELATED TO SECTION 532 OF THE
ACT.—Section 2016 is amended by striking ‘‘any State,
any possession of the United States, or the District of Co-
lumbia,’’.
(i) AMENDMENTS RELATING TO SECTION 602 OF
THE ACT.—
(1) Subparagraph (A) of section 408(q)(3) is
amended to read as follows:
‘‘(A) QUALIFIED
EMPLOYER
PLAN.—The
term ‘qualified employer plan’ has the meaning
given such term by section 72(p)(4)(A)(i); ex-
cept that such term shall also include an eligi-
ble deferred compensation plan (as defined in
section 457(b)) of an eligible employer de-
scribed in section 457(e)(1)(A).’’.
(2) Section 4(c) of Employee Retirement In-
come Security Act of 1974 is amended—
(A) by inserting ‘‘and part 5 (relating to
administration and enforcement)’’ before the
period at the end, and
(B) by adding at the end the following new
sentence: ‘‘Such provisions shall apply to such
accounts and annuities in a manner similar to
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their application to a simplified employee pen-
sion under section 408(k) of the Internal Rev-
enue Code of 1986.’’.
(j) AMENDMENTS RELATING TO SECTION 611 OF
THE ACT.—
(1) Section 408(k) is amended—
(A) in paragraph (2)(C) by striking
‘‘$300’’ and inserting ‘‘$450’’, and
(B) in paragraph (8) by striking ‘‘$300’’
both places it appears and inserting ‘‘$450’’.
(2) Section 409(o)(1)(C)(ii) is amended—
(A) by striking ‘‘$500,000’’ both places it
appears and inserting ‘‘$800,000’’, and
(B) by striking ‘‘$100,000’’ and inserting
‘‘$160,000’’.
(3) Section 611(i) of the Economic Growth and
Tax Relief Reconciliation Act of 2001 is amended by
adding at the end the following new paragraph:
‘‘(3) SPECIAL RULE.—In the case of plan that,
on June 7, 2001, incorporated by reference the limi-
tation of section 415(b)(1)(A) of the Internal Rev-
enue Code of 1986, section 411(d)(6) of such Code
and section 204(g)(1) of the Employee Retirement
Income Security Act of 1974 do not apply to a plan
amendment that—