26 U.S.C. § 137
Section 137 · Adoption assistance programs
Version as of June 7, 2001, with additions and removals from the October 21, 1998 version.
(1) in the case of an adoption of a child other than a child with special needs, the amount of the qualified adoption expenses paid or incurred by the taxpayer, and
(2) in the case of an adoption of a child with special needs, $10,000.
(1) Dollar limitation
(1) Dollar limitation
(2) Income limitation
(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—
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—
(B) $40,000.
(B) $40,000.
(3) Determination of adjusted gross income
(3) Determination of adjusted gross income
For purposes of paragraph (2), adjusted gross income shall be determined—
For purposes of paragraph (2), adjusted gross income shall be determined—
(B) after the application of sections 86, 135, 219, and 469.
(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—
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
(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).
(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.
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).
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.
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.
In the case of a taxable year beginning after December 31, 2002, each of the dollar amounts in subsection (a)(2) and paragraphs (1) and (2)(A) of subsection (b) shall be increased by an amount equal to—
(1) such dollar amount, multiplied by
(2) 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.