Page:United States Statutes at Large Volume 95.djvu/227

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 201

Unemployment Tax Act), and section 3401(a)(19) (relating to 26 USC 3401. collection of income tax at source on wages) and inserting in lieu thereof "section 127 or 129". (B) SOCIAL SECURITY ACT.—Subsection (q) of section 209 of the Social Security Act (defining wages) is amended by 42 USC 409. striking out "section 127" and inserting in lieu thereof "section 127 or 129". (f) EFFECTIVE DATE.—

26 USC 44A

(1) Except as provided in paragraph (2), the amendments made ^°^by this section shall apply to teixable years beginning after December 31, 1981. (2) The amendments made by subsection (e)(2) shall apply to remuneration paid after December 31, 1981. SEC.

125. DEDUCTION FOR INDIVIDUAL.

ADOPTION

EXPENSES

PAID

BY

AN

(a) IN GENERAL.—Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals), as amended by section 103, is amended by redesignating section 222 as section 223 and Ante, p. 187. by inserting after section 221 the following new section: "SEC. 222. ADOPTION EXPENSES.

26 USC 222.

"(a) ALLOWANCE OF DEDUCTION.—In the case of an individual, there shall be allowed as a deduction for the taxable year the amount of the qualified adoption expenses paid or incurred by the taxpayer during such taxable year. "(b) LIMITATIONS.— "(1) MAXIMUM DOLLAR AMOUNT.—The aggregate amount of

adoption expenses which may be taken into account under subsection (a) with respect to the adoption of a child shall not exceed $1,500. "(2) DENIAL OF DOUBLE BENEFIT.—

"(A) IN GENERAL.—No deduction shall be allowable under subsection (a) for any expense for which a deduction or credit is allowable under any other provision of this chapter. "(B) GRANTS.—No deduction shall be allowable under subsection (a) for any expenses paid from any funds received under any Federal, State, or local program. "(c) DEFINITIONS.—For purposes of this section— "(1) QUALIFIED ADOPTION EXPENSES.—The term 'qualified adoption expenses' means reasonable and necessary adoption fees, court costs, attorney fees, and other expenses which are directly related to the legal adoption of a child with special needs by the taxpayer and which are not incurred in violation of State or Federal law. "(2) CHILD WITH SPECIAL NEEDS.—The term 'child with special needs' means a child with respect to whom adoption assistance payments are made under section 473 of the Social Security Act." (b) CONFORMING AMENDMENT.—The table of sections for such part VII is amended by striking out the item relating to section 222 and inserting in lieu thereof the following: "Sec. 222. Adoption expenses. "Sec. 223. Cross references." (c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 222

apply to taxable years beginning after December 31, 1980.

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