26 U.S.C. § 137
§ 137. Adoption assistance programs
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1996 by the Small Business Job Protection Act of 1996. Last changed March 11, 2021 by the American Rescue Plan Act of 2021.
Every change, newest first (13)
- March 11, 2021American Rescue Plan Act of 2021
- December 27, 2020Consolidated Appropriations Act, 2021
- March 23, 2018Consolidated Appropriations Act, 2018
- December 22, 2017Tax Cuts and Jobs Act (2017)
- December 17, 2010Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
- March 23, 2010Patient Protection and Affordable Care Act (2010)
- October 22, 2004American Jobs Creation Act of 2004
- October 4, 2004Public Law 108-311
- March 9, 2002Public Law 107-147
- June 7, 2001Economic Growth and Tax Relief Reconciliation Act of 2001
- October 21, 1998Public Law 105-277
- August 5, 1997Taxpayer Relief Act of 1997
- August 20, 1996Small Business Job Protection Act of 1996 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Structure
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.
In the case of an adoption of a child with special needs which becomes final during a taxable year, the qualified adoption expenses with respect to such adoption for such year shall be increased by an amount equal to the excess (if any) of $10,000 over the actual aggregate qualified adoption expenses with respect to such adoption during such taxable year and all prior taxable years.
The aggregate of the amounts paid or expenses incurred which may be taken into account under subsection (a) for all taxable years with respect to the adoption of a child by the taxpayer shall not exceed $10,000.
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 (if any) by which the taxpayer’s adjusted gross income exceeds $150,000, bears to
$40,000.
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—
under which the employer provides such employees with adoption assistance, and
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 541 2 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.
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—
such dollar amount, multiplied by
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 2016” in subparagraph (A)(ii) thereof.
If any amount as increased under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.