26 U.S.C. § 137: Adoption assistance programs

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 (if any) by which the taxpayer’s adjusted gross income exceeds $150,000, bears to $40,000. without regard to this section and sections 85(c) 1 221, 911, 931, and 933, and 1 So in original. Probably should be followed by a comma. after the application of sections 86, 135, 219, and 469. 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). 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. 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.