Adoption Incentives Act of 1995 - Amends the Internal Revenue Code to exclude from gross income: (1) employee and military adoption assistance benefits; and (2) a withdrawal from an individual retirement account for qualified adoption expenses to the extent that such amount exceeds the sum of such benefits plus any credit allowable with respect to such expenses, as long as such amount does not exceed such expenses.
[Congressional Bills 104th Congress]
[From the U.S. Government Printing Office]
[H.R. 1985 Introduced in House (IH)]
104th CONGRESS
1st Session
H. R. 1985
To amend the Internal Revenue Code of 1986 to exclude from gross income
employee and military adoption assistance benefits and withdrawals from
IRAs for certain adoption expenses.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 1995
Mr. Kennedy of Massachusetts (for himself, Mr. Burton of Indiana, Mr.
Smith of New Jersey, Mr. Matsui, Mrs. Maloney, Mr. Underwood, Mr.
Ehlers, Mr. Bunning of Kentucky, Mr. Thornberry, Mr. Barton of Texas,
Mr. Bryant of Tennessee, Mr. Oberstar, Mr. Frost, Mr. Dellums, Mr.
Dornan, Mr. Ackerman, Mr. Jacobs, Mr. Stupak, Mr. Solomon, Mr. Evans,
Mr. Pete Geren of Texas, Mr. Hastings of Florida, Mr. Serrano, Mr.
Payne of Virginia, Mr. Fattah, and Mr. Barrett of Wisconsin) introduced
the following bill; which was referred to the Committee on Ways and
Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income
employee and military adoption assistance benefits and withdrawals from
IRAs for certain adoption expenses.
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 ``Adoption Incentives Act of 1995''.
SEC. 2. EXCLUSION OF ADOPTION ASSISTANCE.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by redesignating section 137
as section 138 and by inserting after section 136 the following new
section:
``SEC. 137. ADOPTION ASSISTANCE.
``(a) In General.--Gross income of an employee does not include
employee adoption assistance benefits, or military adoption assistance
benefits, received by the employee with respect to the employee's
adoption of a child.
``(b) Definitions.--For purposes of this section--
``(1) Employee adoption assistance benefits.--The term
`employee adoption assistance benefits' means payment by an
employer of qualified adoption expenses with respect to an
employee's adoption of a child, or reimbursement by the
employer of such qualified adoption expenses paid or incurred
by the employee in the taxable year.
``(2) Employer and employee.--The terms `employer' and
`employee' have the respective meanings given such terms by
section 127(c).
``(3) Military adoption assistance benefits.--The term
`military adoption assistance benefits' means benefits provided
under section 1052 of title 10, United States Code, or section
514 of title 14, United States Code.
``(4) Qualified adoption expenses.--
``(A) In general.--The term `qualified adoption
expenses' means reasonable and necessary adoption fees,
court costs, attorney fees, and other expenses--
``(i) which are directly related to, and
the principal purpose of which is for, the
legal adoption of an eligible child by the
taxpayer, and
``(ii) which are not incurred in violation
of State or Federal law or in carrying out any
surrogate parenting arrangement.
``(B) Eligible child.--The term `eligible child'
means any individual--
``(i) who has not attained age 18 as of the
time of the adoption, or
``(ii) who is physically or mentally
incapable of caring for himself.
``(c) Coordination With Other Provisions.--The Secretary shall
issue regulations to coordinate the application of this section with
the application of any other provision of this title which allows a
credit or deduction with respect to qualified adoption expenses.''
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by striking the item
relating to section 137 and inserting the following new items:
``Sec. 137. Adoption assistance.
``Sec. 138. Cross references to other
Acts.''
(c) Effective Date.--The amendments made this section shall apply
to taxable years beginning after December 31, 1995.
SEC. 3. WITHDRAWAL FROM IRA FOR ADOPTION EXPENSES.
(a) In General.--Subsection (d) of section 408 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(8) Qualified adoption expenses.--
``(A) In general.--Any amount which is paid or
distributed out of an individual retirement plan of the
taxpayer, and which would (but for this paragraph) be
includible in gross income, shall be excluded from
gross income to the extent that--
``(i) such amount exceeds the sum of--
``(I) the amount excludable under
section 137, and
``(II) any amount allowable as a
credit under this title with respect to
qualified adoption expenses; and
``(ii) such amount does not exceed the
qualified adoption expenses paid or incurred by
the taxpayer during the taxable year.
``(B) Qualified adoption expenses.--For purposes of
this paragraph, the term `qualified adoption expenses'
has the meaning given such term by section 137, except
that such term shall not include any expense in
connection with the adoption by an individual of a
child who is the child of such individual's spouse.''
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 1995.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E1383)
Referred to the House Committee on Ways and Means.
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