Section 1 Exclusion from gross income of certain State foster care program payments made to biological parents of disabled children
In general— Subsection (c) of section 131 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(3) Application to biological parents receiving payments through State foster care programs—A payment made pursuant to a foster care program of a State or political subdivision thereof shall not fail to be treated as a difficulty of care payment which is excludible from gross income under subsection (a) solely because the qualified foster individual with respect to which such payment is made is the biological child of the foster care provider.”
Effective date— The amendment made by this section shall apply to payments made in taxable years ending after the date of the enactment of this Act.