for fiscal year 1999’’ and inserting ‘‘$75,000,000 for fiscal 
year 2007’’. 
TITLE X—SUPPORT FOR PREG-
NANT AND PARENTING TEENS 
SEC. 1001. GRANTS TO STATES. 
The Secretary shall make grants to States to allow 
early childhood education programs, including Head Start, 
to work with pregnant or parenting teens to complete high 
school and prepare for college or for vocational education. 
TITLE 
XI—FEDERALLY-FUNDED 
HOMES FOR PREGNANT AND 
PARENTING WOMEN; ADOP-
TION 
COUNSELING; 
PAR-
ENTING SKILLS 
SEC. 1101. COUNSELING REQUIREMENTS. 
With respect to any program of grants that is admin-
istered by the Secretary and whose purposes include pro-
viding funds for group homes for pregnant and parenting 
women, the Secretary shall require as a condition of mak-
ing such grants that the entities operating the group 
homes provide to such women, upon request— 
(1) adoption counseling; and 
(2) counseling on parenting skills. 
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TITLE XII—EXPANSION OF ADOP-
TION CREDIT AND ADOPTION 
ASSISTANCE PROGRAMS 
SEC. 1201. EXPANSION OF ADOPTION CREDIT AND ADOP-
TION ASSISTANCE PROGRAMS. 
(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.— 
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‘‘(1) DOLLAR LIMITATIONS.—In the case of a 
taxable year beginning after December 31, 2007, 
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 2006’ 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. 
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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, 2007, 
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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 2006’ 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 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.’’. 
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(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 36 of such code, as so redesig-
nated, is amended— 
(i) by striking paragraph (4) of sub-
section (b), and 
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(ii) by striking subsection (c). 
(E) Section 137 of such code is amended— 
(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’’. 
(F) Section 1400C(d) of such Code is 
amended by striking ‘‘23, 24,’’ and inserting 
‘‘24’’. 
(G) 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. 
(H) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘or 36’’ after ‘‘section 35’’. 
(I) 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) MODIFICATIONS MADE BY EGTRRA TO ADOPTION 
CREDIT MADE PERMANENT.—Title IX of the Economic 
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