Advocates Dedicated to Older Child Parental Tax Credit (ADOPT) Act of 2005

Advocates Dedicated to Older Child Parental Tax Credit (ADOPT) Act of 2005 - Amends the Internal Revenue Code to allow a $2,000 tax credit for costs associated with the adoption of a child who has reached nine years of age before the adoption decree becomes final. Allows the credit each year until such child attains the age of 19.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4092 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4092

   To amend the Internal Revenue Code of 1986 to allow an additional 
     credit against income tax for the adoption of an older child.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 20, 2005

  Ms. Bean (for herself and Ms. Hart) 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 allow an additional 
     credit against income tax for the adoption of an older child.

    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 ``Advocates Dedicated to Older Child 
Parental Tax Credit (ADOPT) Act of 2005''.

SEC. 2. OLDER CHILD ADOPTION TAX CREDIT.

    (a) In General.--Subsection (a) of section 23 of the Internal 
Revenue Code of 1986 (relating to adoption expenses) is amended by 
inserting at the end the following new paragraph:
            ``(4) Credit for adoption of qualified older child 
        regardless of expenses.--In the case of an adoption of a 
        qualified older child by a taxpayer which becomes final during 
        a taxable year, the taxpayer shall be treated as having paid, 
        for each taxable year during the older child credit allowance 
        period, qualified adoption expenses with respect to such 
        adoption in an amount equal to $2,000.''.
    (b) Dollar Limitation not Applicable.--Subsection (b)(1) of such 
section of such Code is amended by inserting ``(without regard to 
paragraph (4) of such subsection)'' after ``subsection (a)''.
    (c) Income Limitation not Applicable.--Subsection (b)(2)(A) of such 
section of such Code is amended by inserting ``paragraph (4) of such 
subsection and'' before ``subsection (c)''.
    (d) Definitions.--Subsection (d) of such section of such Code is 
amended by inserting at the end the following new paragraphs:
            ``(4) Qualified older child.--The term `qualified older 
        child' means an eligible child who has attained age 9 on or 
        before the date on which the legal adoption of such child by 
        the taxpayer becomes final.
            ``(5) Older child credit allowance period.--In the case of 
        an adoption of a qualified older child by a taxpayer, the term 
        `older child credit allowance period' means the taxable years--
                    ``(A) beginning after the taxable year during which 
                the adoption of the qualified older child by the 
                taxpayer becomes final, and
                    ``(B) ending before the taxable year during which 
                the qualified older child has attained age 19.''.
    (e) Adjustments for Inflation.--Subsection (h) of such section of 
such Code is amended--
            (1) by striking ``subsection (a)(3)'' and inserting 
        ``paragraphs (3) and (4) of subsection (a)'', and
            (2) by amending paragraph (2) to read as follows:
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined--
                    ``(A) in the case of the dollar amounts in 
                subsection (a)(3) and paragraphs (1) and (2)(A)(i) of 
                subsection (b), by substituting `calendar year 2001' 
                for `calendar year 1992' in subparagraph (B) thereof, 
                and
                    ``(B) in the case of the dollar amount in 
                subsection (a)(4), by substituting `calendar year 2005' 
                for `calendar year 1992' in subparagraph (B) of such 
                section 1(f)(3).''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.
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