Page:United States Statutes at Large Volume 115 Part 1.djvu/70

 115 STAT. 48 PUBLIC LAW 107-16^JUNE 7, 2001 (iii) by striking "subsection (a)" and inserting "subsection (a)(1)". (2) PHASE-OUT LIMITATION. — (A) ADOPTION EXPENSES. —Clause (i) of section 26 USC 23. 23(b)(2)(A) (relating to income limitation) is amended by striking "$75,000 " and inserting "$150,000". (B) ADOPTION ASSISTANCE PROGRAMS. — Section 137(b)(2)(A) (relating to income limitation) is amended by striking "$75,000 " and inserting "$150,000". (c) YEAR CREDIT ALLOWED.— Section 23(a)(2) (relating to year credit allowed) is amended by adding at the end the following new flush sentence: "In the case of the adoption of a child with special needs, the credit allowed under paragraph (1) shall be allowed for the taxable year in which the adoption becomes final.". (d) REPEAL OF TERMINATIONS.— (1) CHILDREN WITHOUT SPECL^L NEEDS. —Paragraph (2) of section 23(d) (relating to definition of eligible child) is amended to read as follows: "(2) ELIGIBLE CHILD.— The term 'eHgible child' means any individual who— "(A) has not attained age 18, or "(B) is physically or mentally incapable of caring for himself.". (2) ADOPTION ASSISTANCE PROGRAMS.— Section 137 (relating to adoption assistance programs) is amended by striking subsection (f). (e) ADJUSTMENT OF DOLLAR AND INCOME LIMITATIONS FOR INFLATION.— (1) ADOPTION CREDIT.—Section 23 (relating to adoption expenses) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: "(h) ADJUSTMENTS FOR INFLATION.— In the case of a taxable year beginning after December 31, 2002, each of the dollar amounts in subsection (a)(1)(B) and paragraphs (1) and (2)(A)(i) 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.". (2) ADOPTION ASSISTANCE PROGRAMS.— Section 137 (relating to adoption assistance programs), as amended by subsection (d), is amended by adding at the end the following new subsection: "(f) ADJUSTMENTS FOR INFLATION.— 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.". (f) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX.—

�