A bill to amend the Internal Revenue Code of 1954 to provide a personal exemption for childbirth or adoption and to permit the taxpayer to choose a deduction or a tax credit for adoption expenses.

Amends the Internal Revenue Code to provide an additional personal tax exemption of $1,000 for each child born to, or adopted by, a taxpayer during the taxable year.

Provides a $3,000 tax exemption in the case of: (1) a child who is born with a handicap; or (2) the adoption of a child (A) who is a member of a minority race or ethnic group (B) who has attained the age of six or (C) who is handicapped.

Allows for the election of either a tax deduction or tax credit for adoption expenses of more than $500 paid or incurred by a taxpayer. Limits such deduction to $3,500 ($4,500 in the case of an international adoption).