[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5491 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5491
To amend the Internal Revenue Code of 1986 to provide a refundable
credit for taxpayers with long-term care needs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 9, 2010
Mr. Carney (for himself and Mr. Platts) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a refundable
credit for taxpayers with long-term care needs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Caregiver Tax Relief Act of 2010''.
SEC. 2. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable personal
credits) is amended by inserting after section 36C the following new
section:
``SEC. 36D. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS.
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to the applicable credit amount multiplied by the
number of applicable individuals with respect to whom the
taxpayer is an eligible caregiver for the taxable year.
``(2) Applicable credit amount.--For purposes of paragraph
(1), the applicable credit amount shall be $2,500.
``(b) Limitation Based on Adjusted Gross Income.--
``(1) In general.--The amount of the credit allowable under
subsection (a) shall be reduced (but not below zero) by $100
for each $1,000 (or fraction thereof) by which the taxpayer's
modified adjusted gross income exceeds the threshold amount.
For purposes of the preceding sentence, the term `modified
adjusted gross income' means adjusted gross income increased by
any amount excluded from gross income under section 911, 931,
or 933.
``(2) Threshold amount.--For purposes of paragraph (1), the
term `threshold amount' means--
``(A) $150,000 in the case of a joint return, and
``(B) $75,000 in any other case.
``(3) Indexing.--In the case of any taxable year beginning
in a calendar year after 2011, each dollar amount contained in
paragraph (2) shall be increased by an amount equal to the
product of--
``(A) such dollar amount; and
``(B) the medical care cost adjustment determined
under section 213(d)(10)(B)(ii) for the calendar year
in which the taxable year begins, determined by
substituting `2008' for `1996' in subclause (II)
thereof. If any increase determined under the preceding
sentence is not a multiple of $50, such increase shall
be rounded to the next lowest multiple of $50.
``(c) Definitions.--For purposes of this section:
``(1) Applicable individual.--
``(A) In general.--The term `applicable individual'
means, with respect to any taxable year, any individual
who has been certified, before the due date for filing
the return of tax for the taxable year (without
extensions), by a physician (as defined in section
1861(r)(1) of the Social Security Act) as being an
individual with long-term care needs described in
subparagraph (B) for a period--
``(i) which is at least 180 consecutive
days, and
``(ii) a portion of which occurs within the
taxable year.
Such term shall not include any individual otherwise
meeting the requirements of the preceding sentence
unless within the 39\1/2\ month period ending on such
due date (or such other period as the Secretary
prescribes) a physician (as so defined) has certified
that such individual meets such requirements.
``(B) Individuals with long-term care needs.--An
individual is described in this subparagraph if the
individual meets any of the following requirements:
``(i) The individual is at least 18 years
of age and--
``(I) is unable to perform (without
substantial assistance from another
individual) at least 3 activities of
daily living (as defined in section
7702B(c)(2)(B)) due to a loss of
functional capacity, or
``(II) requires substantial
supervision to protect such individual
from threats to health and safety due
to severe cognitive impairment and is
unable to perform at least 1 activity
of daily living (as so defined) or to
the extent provided in regulations
prescribed by the Secretary (in
consultation with the Secretary of
Health and Human Services), is unable
to engage in age appropriate
activities.
``(ii) The individual is at least 6 but not
18 years of age and--
``(I) is unable to perform (without
substantial assistance from another
individual) at least 3 activities of
daily living (as defined in section
7702B(c)(2)(B)) due to a loss of
functional capacity,
``(II) requires substantial
supervision to protect such individual
from threats to health and safety due
to severe cognitive impairment and is
unable to perform at least 1 activity
of daily living (as so defined) or to
the extent provided in regulations
prescribed by the Secretary (in
consultation with the Secretary of
Health and Human Services), is unable
to engage in age appropriate
activities,
``(III) has a level of disability
similar to the level of disability
described in subclause (I) (as
determined under regulations
promulgated by the Secretary), or
``(IV) has a complex medical
condition (as defined by the Secretary)
that requires medical management and
coordination of care.
``(iii) The individual is at least 2 but
not 6 years of age and--
``(I) is unable due to a loss of
functional capacity to perform (without
substantial assistance from another
individual) at least 2 of the following
activities: eating, transferring, or
mobility,
``(II) has a level of disability
similar to the level of disability
described in subclause (I) (as
determined under regulations
promulgated by the Secretary), or
``(III) has a complex medical
condition (as defined by the Secretary)
that requires medical management and
coordination of care.
``(iv) The individual is under 2 years of
age and--
``(I) requires specific durable
medical equipment by reason of a severe
health condition or requires a skilled
practitioner trained to address the
individual's condition to be available
if the individual's parents or
guardians are absent,
``(II) has a level of disability
similar to the level of disability
described in subclause (I) (as
determined under regulations
promulgated by the Secretary), or
``(III) has a complex medical
condition (as defined by the Secretary)
that requires medical management and
coordination of care.
``(v) The individual has 5 or more chronic
conditions (as defined in subparagraph (C)) and
is unable to perform (without substantial
assistance from another individual) at least 1
activity of daily living (as so defined) due to
a loss of functional capacity.
``(C) Chronic condition.--For purposes of this
paragraph, the term `chronic condition' means a
condition that lasts for at least 6 consecutive months
and requires ongoing medical care.
``(2) Eligible caregiver.--
``(A) In general.--A taxpayer shall be treated as
an eligible caregiver for any taxable year with respect
to each of the following individuals:
``(i) The taxpayer.
``(ii) The taxpayer's spouse.
``(iii) An individual who is a qualifying
child (as defined in section 152(c)) or a
qualifying relative (as defined in section
152(d)) with respect to whom the taxpayer is
allowed a deduction under section 151(c) for
the taxable year.
``(iv) An individual who would be a
qualifying relative described in clause (iii)
for the taxable year if section 152(d)(1)(B)
were applied by substituting for the exemption
amount an amount equal to the sum of the
exemption amount, the standard deduction under
section 63(c)(2)(C), and any additional
standard deduction under section 63(c)(3) which
would be applicable to the individual if clause
(iii) applied.
``(v) An individual who would be a
qualifying relative described in clause (iii)
for the taxable year if--
``(I) the requirements of clause
(iv) are met with respect to the
individual; and
``(II) the requirements of
subparagraph (B) are met with respect
to the individual in lieu of the
support test of section 152(d)(1)(C).
``(B) Residency test.--The requirements of this
subparagraph are met if an individual has as his
principal place of abode the home of the taxpayer and--
``(i) in the case of an individual who is
an ancestor or descendant of the taxpayer or
the taxpayer's spouse, is a member of the
taxpayer's household for over half the taxable
year, or
``(ii) in the case of any other individual,
is a member of the taxpayer's household for the
entire taxable year.
``(C) Special rules where more than 1 eligible
caregiver.--
``(i) In general.--If more than 1
individual is an eligible caregiver with
respect to the same applicable individual for
taxable years ending with or within the same
calendar year, a taxpayer shall be treated as
the eligible caregiver if each such individual
(other than the taxpayer) files a written
declaration (in such form and manner as the
Secretary may prescribe) that such individual
will not claim such applicable individual for
the credit under this section.
``(ii) No agreement.--If each individual
required under clause (i) to file a written
declaration under clause (i) does not do so,
the individual with the highest modified
adjusted gross income (as defined in section
32(c)(5) (as in effect on the day before the
enactment of the Economic Growth and Tax Relief
Reconciliation Act of 2001)) shall be treated
as the eligible caregiver.
``(iii) Married individuals filing
separately.--In the case of married individuals
filing separately, the determination under this
subparagraph as to whether the husband or wife
is the eligible caregiver shall be made under
the rules of clause (ii) (whether or not one of
them has filed a written declaration under
clause (i)).
``(d) Identification Requirement.--No credit shall be allowed under
this section to a taxpayer with respect to any applicable individual
unless the taxpayer includes the name and taxpayer identification
number of such individual, and the identification number of the
physician certifying such individual, on the return of tax for the
taxable year.
``(e) Taxable Year Must Be Full Taxable Year.--Except in the case
of a taxable year closed by reason of the death of the taxpayer, no
credit shall be allowable under this section in the case of a taxable
year covering a period of less than 12 months.
``(f) Citizens or Nationals of Other Countries.--
``(1) In general.--The terms `applicable individual' and
`eligible caregiver' do not include an individual who is not a
citizen or national of the United States unless such individual
is a resident alien (as defined in section 7702(b)).
``(2) Exception for adopted child.--Paragraph (1) shall not
exclude any child of a taxpayer (within the meaning of section
152(f)(1)(B)) if--
``(A) for the taxable year of the taxpayer, the
child has the same principal place of abode as the
taxpayer and is a member of the taxpayer's household,
and
``(B) the taxpayer is a citizen, national, or
resident alien of the United States.''.
(b) Conforming Amendments.--
(1) Section 6213(g)(2) of such Code is amended by striking
``and'' at the end of subparagraph (O), by striking the period
at the end of subparagraph (P) and inserting ``, and'', and by
inserting after subparagraph (P) the following new
subparagraph:
``(Q) an omission of a correct TIN or physician
identification required under section 36D(d) (relating
to credit for taxpayers with long-term care needs) to
be included on a return.''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 36C the following new item:
``Sec. 36D. Credit for taxpayers with long-term care needs.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2010.
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