Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Hope for Children Act''.

SEC. 2. EXPANSION OF ADOPTION CREDIT AND ADOPTION ASSISTANCE PROGRAMS.

(a) In General.--
(1) Adoption credit.--Section 23(a)(1) of the Internal
Revenue Code of 1986 (relating to allowance of credit) is
amended to read as follows:
''(1) In general.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter--
''(A) in the case of an adoption of a child other
than a child with special needs, the amount of the
qualified adoption expenses paid or incurred by the
taxpayer, and
''(B) in the case of an adoption of a child with
special needs, $10,000.''.
(2) Adoption assistance programs.--Section 137(a) of such
Code (relating to adoption assistance programs) is amended to
read as follows:
''(a) In General.--Gross income of an employee does not include
amounts paid or expenses incurred by the employer for adoption expenses
in connection with the adoption of a child by an employee if such
amounts are furnished pursuant to an adoption assistance program. The
amount of the exclusion shall be--
''(1) in the case of an adoption of a child other than a
child with special needs, the amount of the qualified adoption
expenses paid or incurred by the taxpayer, and
''(2) in the case of an adoption of a child with special
needs, $10,000.''.
(b) Dollar Limitations.--
(1) Dollar amount of allowed expenses.--
(A) Adoption expenses.--Section 23(b)(1) of the
Internal Revenue Code of 1986 (relating to allowance of
credit) is amended--
(i) by striking ''$5,000'' and inserting
''$10,000'',
(ii) by striking ''($6,000, in the case of
a child with special needs)'', and
(iii) by striking ''subsection (a)'' and
inserting ''subsection (a)(1)(A)''.
(B) Adoption assistance programs.--Section
137(b)(1) of such Code (relating to dollar limitations
for adoption assistance programs) is amended--
(i) by striking ''$5,000'' and inserting
''$10,000'', and
(ii) by striking ''($6,000, in the case of
a child with special needs)'', and
(iii) by striking ''subsection (a)'' and
inserting ''subsection (a)(1)''.
(2) Phase-out limitation.--
(A) Adoption expenses.--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''.
(B) Adoption assistance programs.--Section
137(b)(2)(A) of such Code (relating to income
limitation) is amended by striking ''$75,000'' and
inserting ''$150,000''.
(c) Year Credit Allowed.--Section 23(a)(2) of the Internal Revenue
Code of 1986 (relating to year credit allowed) is amended by adding at
the end the following new flush sentence:
''In the case of the adoption of a child with special needs,
the credit allowed under paragraph (1) shall be allowed for the
taxable year in which the adoption becomes final.''.
(d) Repeal of Sunset Provisions.--
(1) Children without special needs.--Paragraph (2) of
section 23(d) of the Internal Revenue Code of 1986 (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) Adoption Assistance Programs.--Section 137 of such Code
(relating to adoption assistance programs) is amended by
striking subsection (f).
(e) Adjustment of Dollar and Income Limitations for Inflation.--
(1) Adoption credit.--Section 23 of the Internal Revenue
Code of 1986 (relating to adoption expenses) 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, 2002, each of the dollar amounts in
subsection (a)(1)(B) and paragraphs (1) and (2)(A)(i) of subsection (b)
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 2001' for
'calendar year 1992' in subparagraph (B) thereof.''.
(2) Adoption assistance programs.--Section 137 of such Code
(relating to adoption assistance programs), as amended by
subsection (d), is amended by adding at the end the following
new subsection:
''(f) Adjustments for Inflation.--In the case of a taxable year
beginning after December 31, 2002, each of the dollar amounts in
subsection (a)(2) and paragraphs (1) and (2)(A) of subsection (b) 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 2001' for
'calendar year 1992' in subparagraph (B) thereof.''.
(f) Limitation Based on Amount of Tax.--
(1) In general.--Section 23(c) of the Internal Revenue Code
of 1986 (relating to carryforwards of unused credit) is amended
by striking ''the limitation imposed'' and all that follows
through ''1400C)'' and inserting ''the applicable tax
limitation''.
(2) Applicable tax limitation.--Section 23(d) of such Code
(relating to definitions) is amended by adding at the end the
following new paragraph:
''(4) 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 increase under subsection (d)
thereof), 25, and 25A, and
''(B) the tax imposed by section 55 for such
taxable year.''.
(3) Conforming amendments.--
(A) Section 26(a) of such Code (relating to
limitation based on amount of tax) is amended by
inserting ''(other than section 23)'' after ''allowed
by this subpart''.
(B) Section 53(b)(1) of such Code (relating to
minimum tax credit) is amended by inserting ''reduced
by the aggregate amount taken into account under
section 23(d)(3)(B) for all such prior taxable years,''
after ''1986,''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
Output:
Hope for Children Act - Amends the Internal Revenue Code to increase the expenses allowable towards the adoption credit.