Making Adoption Affordable Act of 2012 - Makes permanent provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 allowing an increased tax credit for adoption expenses and an increased exclusion from an employee's gross income for amounts paid by an employer for adoption expenses.
Amends the Internal Revenue Code to reinstate and make permanent: (1) the increase in the tax credit for adoption expenses and the increased exclusion from an employee's gross income for amounts paid by an employer for adoption expenses that were enacted by the Patient Protection and Affordable Care Act, (2) the annual inflation adjustments for such increased amounts, and (3) the refundability of the tax credit for adoption expenses.
Directs the Secretary of the Treasury to take certain actions concerning: (1) Internal Revenue Service (IRS) communications efforts about the adoption tax credit, and (2) documentation of adoption expenses required before initiation of a tax audit.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3616 Introduced in Senate (IS)]
112th CONGRESS
2d Session
S. 3616
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 21, 2012
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 Finance
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Making Adoption Affordable Act of
2012''.
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.
(b) Expansions Enacted in 2010 Permanently Reinstated.--
(1) Increase in dollar limitation.--
(A) Adoption credit.--
(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''.
(ii) Child with special needs.--Paragraph
(3) of section 23(a) of such Code is amended--
(I) in the text by striking
``$10,000'' and inserting ``$13,170'',
and
(II) in the heading by striking
``$10,000'' and inserting ``$13,170''.
(iii) Conforming amendment to inflation
adjustment.--Subsection (h) of section 23 of
such Code is amended to read as follows:
``(h) Adjustments for Inflation.--
``(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--
``(A) such dollar amount, multiplied by
``(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.
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.
``(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--
``(A) such dollar amount, multiplied by
``(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.
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.''.
(B) Adoption assistance programs.--
(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''.
(ii) Child with special needs.--Paragraph
(2) of section 137(a) of such Code is amended--
(I) in the text by striking
``$10,000'' and inserting ``$13,170'',
and
(II) in the heading by striking
``$10,000'' and inserting ``$13,170''.
(iii) Conforming amendment to inflation
adjustment.--Subsection (f) of section 137 of
such Code is amended to read as follows:
``(f) Adjustments for Inflation.--
``(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--
``(A) such dollar amount, multiplied by
``(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.
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.
``(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--
``(A) such dollar amount, multiplied by
``(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.
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.''.
(2) Credit made refundable.--
(A) Credit moved to subpart relating to refundable
credits.--The Internal Revenue Code of 1986 is
amended--
(i) by redesignating section 23, as amended
by subsection (a), as section 36C, and
(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.
(B) Conforming amendments.--
(i) Section 24(b)(3)(B) of such Code is
amended by striking ``23,''.
(ii) Section 25(e)(1)(C) of such Code is
amended by striking ``23,'' both places it
appears.
(iii) Section 25A(i)(5)(B) of such Code is
amended by striking ``23, 25D,'' and inserting
``25D''.
(iv) Section 25B(g)(2) of such Code is
amended by striking ``23,''.
(v) Section 26(a)(1) of such Code is
amended by striking ``23,''.
(vi) Section 30(c)(2)(B)(ii) of such Code
is amended by striking ``23, 25D,'' and
inserting ``25D''.
(vii) Section 30B(g)(2)(B)(ii) of such Code
is amended by striking ``23,''.
(viii) Section 30D(c)(2)(B)(ii) of such
Code is amended by striking ``sections 23 and''
and inserting ``section''.
(ix) Section 36C of such Code, as so
redesignated, is amended--
(I) by striking paragraph (4) of
subsection (b), and
(II) by striking subsection (c).
(x) Section 137 of such Code is amended--
(I) by striking ``section 23(d)''
in subsection (d) and inserting
``section 36C(d)'', and
(II) by striking ``section 23'' in
subsection (e) and inserting ``section
36C''.
(xi) Section 904(i) of such Code is amended
by striking ``23,''.
(xii) Section 1016(a)(26) of such Code is
amended by striking ``23(g)'' and inserting
``36C(g)''.
(xiii) Section 1400C(d) of such Code is
amended by striking ``23,''.
(xiv) Section 6211(b)(4)(A) of such Code is
amended by inserting ``36C,'' before ``53(e)''.
(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.
(xvi) Paragraph (2) of section 1324(b) of
title 31, United States Code, is amended by
inserting ``36C,'' after ``36B,''.
(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:
``Sec. 36C. Adoption expenses.''.
(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.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2011.
(c) Adoption of GAO Recommendations.--The Secretary of the Treasury
or the Secretary's designee shall--
(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, and
(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.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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