PUBLIC LAW 104-188—AUG. 20, 1996 110 STAT. 1901 "(1) subsection (a) shall not apply to any qualified adoption expense with respect to such adoption unless such adoption becomes final, and "(2) any such expense which is paid or incurred before the taxable year in which such adoption becomes final shall be taken into account under this section as if such expense were paid or incurred during such year. "(f) FILING REQUIREMENTS. — "(1) MARRIED COUPLES MUST FILE JOINT RETURNS.— Rules similar to the rules of paragraphs (2), (3), and (4) of section 21(e) shall apply for purposes of this section. "(2) TAXPAYER MUST INCLUDE TIN. — "(A) IN GENERAL. —No credit shall be allowed under this section with respect to any eligible child unless the taxpayer includes (if known) the name, age, and TIN of such child on the return of tax for the taxable year. "(B) OTHER METHODS.— The Secretary may, in lieu of the information referred to in subparagraph (A), require other information meeting the purposes of subparagraph (A), including identification of an agent assisting with the adoption. "(g) BASIS ADJUSTMENTS.—For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed. "(h) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to carry out this section and section 137, including regulations which treat unmarried individuals who pay or incur qualified adoption expenses with respect to the same child as 1 taxpayer for purposes of applying the dollar limitation in subsection (b)(1) of this section and in section 137(b)(1).". (b) EXCLUSION OF AMOUNTS RECEIVED UNDER EMPLOYER'S ADOPTION ASSISTANCE PROGRAMS. —Part III of subchapter B of chapter 1 (relating to items specifically excluded from gross income) is amended by redesignating section 137 as section 138 and by inserting after section 136 the following new section: "SEC. 137. ADOPTION ASSISTANCE PROGRAMS. "(a) IN GENERAL.— 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. "(b) LIMITATIONS.— "(1) DOLLAR LIMITATION.— The aggregate amount excludable from gross income under subsection (a) for all taxable years with respect to the adoption of a child by the taxpayer shall not exceed $5,000 ($6,000, in the case of a child with special needs). "(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 (D) as—
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