26 U.S.C. § 137
Section 137 · Adoption assistance programs
Viewing 26 U.S.C. § 137 as in effect on August 20, 1996. The text changed in 10 later editions (most recent March 11, 2021).
View current version →Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program.
(1) Dollar limitation
The aggregate amount excludable from gross income under subsection (a) for all taxable years with respect to the adoption of a child by the taxpayer shall not exceed $5,000 ($6,000, in the case of a child with special needs).
(2) Income limitation
The amount excludable from gross income under subsection (a) for any taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount so excludable (determined without regard to this paragraph but with regard to paragraph (1)) as—
(A) the amount (if any) by which the taxpayer's adjusted gross income exceeds $75,000, bears to
(B) $40,000.
(3) Determination of adjusted gross income
For purposes of paragraph (2), adjusted gross income shall be determined—
(A) without regard to this section and sections 911, 931, and 933, and
(B) after the application of sections 86, 135, 219, and 469.
For purposes of this section, an adoption assistance program is a separate written plan of an employer for the exclusive benefit of such employer's employees—
(1) under which the employer provides such employees with adoption assistance, and
(2) which meets requirements similar to the requirements of paragraphs (2), (3), (5), and (6) of section 127(b).
An adoption reimbursement program operated under section 1052 of title 10, United States Code (relating to armed forces) or section 514 of title 14, United States Code (relating to members of the Coast Guard) shall be treated as an adoption assistance program for purposes of this section.
For purposes of this section, the term “qualified adoption expenses” has the meaning given such term by section 23(d) (determined without regard to reimbursements under this section).
Rules similar to the rules of subsections (e), (f), and (g) of section 23 shall apply for purposes of this section.
This section shall not apply to amounts paid or expenses incurred after December 31, 2001.
Editorial notes U.S. Code · Office of the Law Revision Counsel
Prior Provisions
A prior section 137 was renumbered section 138 of this title.
Effective Date
Section applicable to taxable years beginning after Dec. 31, 1996, see section 1807(e) of Pub. L. 104–188, set out as a note under section 23 of this title.