II
Calendar No. 71
107TH CONGRESS
1ST SESSION
H. R. 622
IN THE SENATE OF THE UNITED STATES
MAY 17, 2001
Received
JUNE 6, 2001
Read the first time
JUNE 7, 2001
Read the second time and placed on the calendar
AN ACT
To amend the Internal Revenue Code of 1986 to expand
the adoption credit, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
HR 622 PCS
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Hope for Children
Act’’.
SEC. 2. INCREASED TAX INCENTIVES FOR ADOPTIONS.
(a) INCREASE
IN
MAXIMUM
BENEFIT.—Section
23(b)(1) of the Internal Revenue Code of 1986 (relating
to dollar limitation) is amended by striking ‘‘$5,000’’ and
all that follows and inserting ‘‘$10,000.’’.
(b) BENEFITS MADE PERMANENT FOR ALL CHIL-
DREN.—Paragraph (2) of section 23(d) of such Code 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.’’.
(c) INCREASE IN PHASEOUT.—Clause (i) of section
23(b)(2)(A) of such Code (relating to income limitation)
is amended by striking ‘‘$75,000’’ and inserting
‘‘$150,000’’.
(d) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.—
(1) IN GENERAL.—Subsection (b) of section 23
of such Code is amended by adding at the end the
following new paragraph:
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‘‘(4) LIMITATION
BASED
ON
AMOUNT
OF
TAX.—The credit allowed under subsection (a) for
any taxable year shall not exceed the excess of—
‘‘(A) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax im-
posed by section 55, over
‘‘(B) the sum of the credits allowable
under this subpart (other than this section) and
section 27 for the taxable year.’’.
(2) CONFORMING AMENDMENTS.—
(A) Subsection (c) of section 23 of such
Code is amended—
(i) by striking ‘‘section 26(a)’’ and in-
serting ‘‘subsection (b)(4)’’; and
(ii) by striking ‘‘reduced by the sum
of the credits allowable under this subpart
(other than this section and section
1400C)’’.
(B) Paragraph (1) of section 26(a) of such
Code is amended by inserting ‘‘(other than sec-
tion 23)’’ after ‘‘this subpart’’.
(C) Section 904(h) of such Code is amend-
ed by inserting ‘‘(other than section 23)’’ after
‘‘chapter’’.
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(D) Subsection (d) of section 1400C of
such Code is amended by inserting ‘‘and section
23’’ after ‘‘this section’’.
(e) AMENDMENTS RELATED
TO EMPLOYER-PRO-
VIDED ADOPTION ASSISTANCE.—
(1) Paragraph (1) of section 137(b) of such
Code is amended by striking ‘‘$5,000’’ and all that
follows and inserting ‘‘$10,000.’’.
(2) Subparagraph (A) of section 137(b)(2) of
such Code is amended by striking ‘‘$75,000’’ and in-
serting ‘‘$150,000’’.
(3) Section 137 of such Code is amended by
striking subsection (f) (relating to termination).
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to taxable years beginning after Decem-
ber 31, 2001.
(2) EXPENSES PAID OR INCURRED IN PRIOR
YEARS.—Expenses paid or incurred during any tax-
able year beginning before January 1, 2002, may be
taken into account in determining the credit under
section 23 of the Internal Revenue Code of 1986 for
a taxable year beginning on or after such date only
to the extent the aggregate of such expenses does