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. 
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 ‘‘Childhood Adoption 
Act of 2005’’.
SEC. 2. INCREASE IN ALLOWABLE EXPENSES FOR ADOP-
TION; ADOPTION CREDIT MADE REFUND-
ABLE. 
(a) INCREASE IN DOLLAR LIMITATION.— 
(1) ADOPTION CREDIT.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 23(b) of the Internal Revenue Code of 
1986 (relating to dollar limitation) is amended 
by striking ‘‘$10,000’’ and inserting ‘‘$15,000’’. 
(B) CHILD WITH SPECIAL NEEDS.—Para-
graph (3) of section 23(a) of such Code (relat-
ing to $10,000 credit for adoption of child with 
special needs regardless of expenses) is amend-
ed— 
(i) in the text by striking ‘‘$10,000’’ 
and inserting ‘‘$15,000’’, and 
(ii) 
in 
the 
heading 
by 
striking 
‘‘$10,000’’ and inserting ‘‘$15,000’’. 
(C) CONFORMING AMENDMENT TO INFLA-
TION ADJUSTMENT.—Subsection (h) of section 
23 of such Code (relating to adjustments for in-
flation) is amended to read as follows: 
‘‘(h) ADJUSTMENTS FOR INFLATION.— 
‘‘(1) DOLLAR LIMITATIONS.—In the case of a 
taxable year beginning after December 31, 2005,
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 2004’ 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 
‘‘(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) ADOPTION ASSISTANCE PROGRAMS.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 137(b) of the Internal Revenue Code of 
1986 (relating to dollar limitation) is amended 
by striking ‘‘$10,000’’ and inserting ‘‘$15,000’’. 
(B) CHILD WITH SPECIAL NEEDS.—Para-
graph (2) of section 137(a) of such Code (relat-
ing to $10,000 exclusion for adoption of child 
with special needs regardless of expenses) is 
amended— 
(i) in the text by striking ‘‘$10,000’’ 
and inserting ‘‘$15,000’’, and 
(ii) 
in 
the 
heading 
by 
striking 
‘‘$10,000’’ and inserting ‘‘$15,000’’. 
(C) CONFORMING AMENDMENT TO INFLA-
TION ADJUSTMENT.—Subsection (f) of section 
137 of such Code (relating to adjustments 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, 2005,
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 2004’ 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 
‘‘(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) CREDIT MADE REFUNDABLE.— 
(1) CREDIT MOVED TO SUBPART RELATING TO 
REFUNDABLE
CREDITS.—The 
Internal 
Revenue 
Code of 1986 is amended— 
(A) by redesignating section 36 as section 
37, 
(B) by redesignating section 23, as amend-
ed by subsection (a), as section 36, and 
(C) by moving section 36 (as so redesig-
nated) from subpart A of part IV of subchapter 
A of chapter 1 to the location immediately be-
fore section 37 (as so redesignated) in subpart 
C of part IV of subchapter A of chapter 1. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 24(b)(3)(B) of such Code is 
amended by striking ‘‘and sections 23’’ and in-
serting ‘‘section’’. 
(B) Section 25(e)(1)(C) of such Code is 
amended by striking ‘‘23,’’. 
(C) Section 25B(g)(2) of such Code is 
amended by striking ‘‘and section 23’’.
(D) Section 137 of such Code is amend-
ed— 
(i) in subsection (d) by striking ‘‘sec-
tion 23(d)’’ and inserting ‘‘section 36(d)’’, 
and 
(ii) in subsection (e) by striking ‘‘sec-
tion 23’’ and inserting ‘‘section 36’’. 
(E) Section 1400C(d) of such Code is 
amended by striking ‘‘23, 24,’’ and inserting 
‘‘24’’. 
(F) The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such 
Code of 1986 is amended by striking the item 
relating to section 23. 
(G) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘or 36’’ after ‘‘section 35’’. 
(H) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the In-
ternal Revenue Code of 1986 is amended by 
striking the last item and inserting the fol-
lowing new items: 
‘‘Sec. 36. Adoption expenses. 
‘‘Sec. 37. Overpayments of tax.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
SEC. 3. INCREASE IN ADOPTION INCENTIVE PAYMENTS. 
(a) IN GENERAL.—Section 473A(d)(1) of the Social 
Security Act (42 U.S.C. 673a(d)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘$4,000’’ 
and inserting ‘‘$8,000’’; 
(2) in subparagraph (B), by striking ‘‘$2,000’’ 
and inserting ‘‘$8,000’’; and 
(3) in subparagraph (C), by striking ‘‘$4,000’’ 
and inserting ‘‘$8,000’’. 
(b) 
INCREASED
PROGRAM
FUNDING.—Section 
473A(h)(1) of such Act (42 U.S.C. 673a(h)(1)) is amend-
ed— 
(1) in subparagraph (C), by striking ‘‘and’’; 
(2) in subparagraph (D), by striking ‘‘through 
2008.’’ and inserting ‘‘and 2005; and’’; and 
(3) by adding at the end the following: 
‘‘(E) $86,000,000 for each of fiscal years 
2006 through 2008.’’. 
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