§ 131. Certain foster care payments
(a)
General rule
Gross income shall not include amounts received by a foster care provider during the taxable year as qualified foster care payments.
(b)
Qualified foster care payment defined
For purposes of this section—
(1)
In general
The term “qualified foster care payment” means any payment made pursuant to a foster care program of a State or political subdivision thereof—
(2)
Qualified foster individual
The term “qualified foster individual” means any individual who is living in a foster family home in which such individual was placed by—
(3)
Qualified foster care placement agency
The term “qualified foster care placement agency” means any placement agency which is licensed or certified by—
for the foster care program of such State or political subdivision to make foster care payments to providers of foster care.
(4)
Limitation based on number of individuals over the age of 18
In the case of any foster home in which there is a qualified foster care individual who has attained age 19, foster care payments (other than difficulty of care payments) for any period to which such payments relate shall not be excludable from gross income under subsection (a) to the extent such payments are made for more than 5 such qualified foster individuals.
(c)
Difficulty of care payments
For purposes of this section—
(1)
Difficulty of care payments
The term “difficulty of care payments” means payments to individuals which are not described in subsection (b)(1)(B)(i), and which—