S 3616 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 3616CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to make permanent the expansion of tax benefits for adoption enacted in 2001 and to permanently reinstate the expansion of tax benefits for adoption enacted in 2010, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

September 21, 2012CommentsClose CommentsPermalink

Ms. LANDRIEU (for herself, Mr. CARDIN, Mr. BLUNT, and Mrs. HUTCHISON) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to make permanent the expansion of tax benefits for adoption enacted in 2001 and to permanently reinstate the expansion of tax benefits for adoption enacted in 2010, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Making Adoption Affordable Act of 2012’.CommentsClose CommentsPermalink

SEC. 2. EXPANDED TAX BENEFITS FOR ADOPTION MADE PERMANENT.

(a) Expansions Enacted in 2001 Made Permanent- Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to the amendments made by section 202 of such Act.CommentsClose CommentsPermalink





(b) Expansions Enacted in 2010 Permanently Reinstated-CommentsClose CommentsPermalink





(1) INCREASE IN DOLLAR LIMITATION-CommentsClose CommentsPermalink





(A) ADOPTION CREDIT-CommentsClose CommentsPermalink





(i) IN GENERAL- Paragraph (1) of section 23(b) of the Internal Revenue Code of 1986 is amended by striking ‘$10,000’ and inserting ‘$13,170’.CommentsClose CommentsPermalink





(ii) CHILD WITH SPECIAL NEEDS- Paragraph (3) of section 23(a) of such Code is amended--CommentsClose CommentsPermalink





(I) in the text by striking ‘$10,000’ and inserting ‘$13,170’, andCommentsClose CommentsPermalink





(II) in the heading by striking ‘$10,000’ and inserting ‘$13,170’.CommentsClose CommentsPermalink





(iii) CONFORMING AMENDMENT TO INFLATION ADJUSTMENT- Subsection (h) of section 23 of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(h) Adjustments for Inflation-CommentsClose CommentsPermalink





‘(1) DOLLAR LIMITATIONS- In the case of a taxable year beginning after December 31, 2010, each of the dollar amounts in subsections (a)(3) and (b)(1) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(A) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(B) 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 2009’ for ‘calendar year 1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





If any amount as increased under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.CommentsClose CommentsPermalink





‘(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 increased by an amount equal to--CommentsClose CommentsPermalink





‘(A) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(B) 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.CommentsClose CommentsPermalink





If any amount as increased under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.’.CommentsClose CommentsPermalink





(B) ADOPTION ASSISTANCE PROGRAMS-CommentsClose CommentsPermalink





(i) IN GENERAL- Paragraph (1) of section 137(b) of the Internal Revenue Code of 1986 is amended by striking ‘$10,000’ and inserting ‘$13,170’.CommentsClose CommentsPermalink





(ii) CHILD WITH SPECIAL NEEDS- Paragraph (2) of section 137(a) of such Code is amended--CommentsClose CommentsPermalink





(I) in the text by striking ‘$10,000’ and inserting ‘$13,170’, andCommentsClose CommentsPermalink





(II) in the heading by striking ‘$10,000’ and inserting ‘$13,170’.CommentsClose CommentsPermalink





(iii) CONFORMING AMENDMENT TO INFLATION ADJUSTMENT- Subsection (f) of section 137 of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(f) Adjustments for Inflation-CommentsClose CommentsPermalink





‘(1) DOLLAR LIMITATIONS- In the case of a taxable year beginning after December 31, 2010, each of the dollar amounts in subsections (a)(2) and (b)(1) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(A) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(B) 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 2009’ for ‘calendar year 1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





If any amount as increased under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.CommentsClose CommentsPermalink





‘(2) INCOME LIMITATION- In the case of a taxable year beginning after December 31, 2002, the dollar amount in subsection (b)(2)(A) shall be increased by an amount equal to--CommentsClose CommentsPermalink





‘(A) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(B) 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.CommentsClose CommentsPermalink





If any amount as increased under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.’.CommentsClose CommentsPermalink





(2) CREDIT MADE REFUNDABLE-CommentsClose CommentsPermalink





(A) CREDIT MOVED TO SUBPART RELATING TO REFUNDABLE CREDITS- The Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(i) by redesignating section 23, as amended by subsection (a), as section 36C, andCommentsClose CommentsPermalink





(ii) by moving section 36C (as so redesignated) from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1.CommentsClose CommentsPermalink





(B) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(i) Section 24(b)(3)(B) of such Code is amended by striking ‘23,’.CommentsClose CommentsPermalink





(ii) Section 25(e)(1)(C) of such Code is amended by striking ‘23,’ both places it appears.CommentsClose CommentsPermalink





(iii) Section 25A(i)(5)(B) of such Code is amended by striking ‘23, 25D,’ and inserting ‘25D’.CommentsClose CommentsPermalink





(iv) Section 25B(g)(2) of such Code is amended by striking ‘23,’.CommentsClose CommentsPermalink





(v) Section 26(a)(1) of such Code is amended by striking ‘23,’.CommentsClose CommentsPermalink





(vi) Section 30(c)(2)(B)(ii) of such Code is amended by striking ‘23, 25D,’ and inserting ‘25D’.CommentsClose CommentsPermalink





(vii) Section 30B(g)(2)(B)(ii) of such Code is amended by striking ‘23,’.CommentsClose CommentsPermalink





(viii) Section 30D(c)(2)(B)(ii) of such Code is amended by striking ‘sections 23 and’ and inserting ‘section’.CommentsClose CommentsPermalink





(ix) Section 36C of such Code, as so redesignated, is amended--CommentsClose CommentsPermalink





(I) by striking paragraph (4) of subsection (b), andCommentsClose CommentsPermalink





(II) by striking subsection (c).CommentsClose CommentsPermalink





(x) Section 137 of such Code is amended--CommentsClose CommentsPermalink





(I) by striking ‘section 23(d)’ in subsection (d) and inserting ‘section 36C(d)’, andCommentsClose CommentsPermalink





(II) by striking ‘section 23’ in subsection (e) and inserting ‘section 36C’.CommentsClose CommentsPermalink





(xi) Section 904(i) of such Code is amended by striking ‘23,’.CommentsClose CommentsPermalink





(xii) Section 1016(a)(26) of such Code is amended by striking ‘23(g)’ and inserting ‘36C(g)’.CommentsClose CommentsPermalink





(xiii) Section 1400C(d) of such Code is amended by striking ‘23,’.CommentsClose CommentsPermalink





(xiv) Section 6211(b)(4)(A) of such Code is amended by inserting ‘36C,’ before ‘53(e)’.CommentsClose CommentsPermalink





(xv) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 23.CommentsClose CommentsPermalink





(xvi) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting ‘36C,’ after ‘36B,’.CommentsClose CommentsPermalink





(xvii) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:CommentsClose CommentsPermalink





‘Sec. 36C. Adoption expenses.’.CommentsClose CommentsPermalink





(3) COORDINATION WITH SUNSET- Each amendment made by this subsection to another provision of law is to such provision of law as amended by section 10909(c) of the Patient Protection and Affordable Care Act, as amended by section 101(b) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.CommentsClose CommentsPermalink





(4) EFFECTIVE DATE- The amendments made by this subsection shall apply to taxable years beginning after December 31, 2011.CommentsClose CommentsPermalink





(c) Adoption of GAO Recommendations- The Secretary of the Treasury or the Secretary’s designee shall--CommentsClose CommentsPermalink





(1) ensure that the Internal Revenue Service communications efforts about the adoption credit under section 36C of the Internal Revenue Code of 1986 specifically include State and local adoption officials, and clarify acceptable documentation for the certification on special needs adoptees, andCommentsClose CommentsPermalink





(2) determine whether requesting documentation in cases where no documentation is provided before initiating an audit would reduce the number of audits without significantly delaying refunds and, if so, implement such a strategy for the 2012 taxable year filing season.CommentsClose CommentsPermalink