[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3028 Introduced in Senate (IS)]
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115th CONGRESS
2d Session
S. 3028
To amend the Internal Revenue Code of 1986 to provide an income tax
credit for eldercare expenses.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 7, 2018
Ms. Klobuchar (for herself, Ms. Cortez Masto, and Ms. Hirono)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide an income tax
credit for eldercare expenses.
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 ``Americans Giving Care to Elders
(AGE) Act of 2018''.
SEC. 2. CREDIT FOR ELDERCARE EXPENSES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25D the following new section:
``SEC. 25E. EXPENSES FOR ELDERCARE.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual for which
there are 1 or more qualifying individuals with respect to such
individual, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to
the applicable percentage of the eldercare expenses paid by
such individual during the taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means 20 percent, reduced
(but not below zero) by 1 percentage point for each $4,000 (or
fraction thereof) by which the taxpayer's adjusted gross income
for the taxable year exceeds $120,000.
``(b) Definitions.--For purposes of this section--
``(1) Qualifying individual.--The term `qualifying
individual' means an individual--
``(A) who has attained age 65,
``(B) who requires assistance with activities of
daily living, and
``(C) who is, with respect to the taxpayer or the
taxpayer's spouse--
``(i) the father or mother or an ancestor
of such father or mother,
``(ii) the father-in-law or mother-in-law
or an ancestor of such father-in-law or mother-
in-law,
``(iii) the stepfather or stepmother or an
ancestor of such stepfather or stepmother, or
``(iv) any other person who, for the
taxable year, has the same principal place of
abode as the taxpayer and is a member of the
household of the taxpayer.
``(2) Eldercare expenses.--
``(A) In general.--The term `eldercare expenses'
means the following amounts paid for expenses relating
to the care of a qualifying individual:
``(i) Medical care (as defined in section
213(d)(1), without regard to subparagraph D
thereof).
``(ii) Lodging away from home in accordance
with section 213(d)(2).
``(iii) Adult day care.
``(iv) Custodial care.
``(v) Respite care.
``(vi) Assistive technologies and devices
(including remote health monitoring).
``(vii) Environmental modifications
(including home modifications).
``(viii) Counseling or training for a
caregiver.
``(B) Definitions.--For purposes of subparagraph
(A)--
``(i) Adult day care.--The term `adult day
care' means care provided for adults with
functional or cognitive impairments through a
structured, community-based group program which
provides health, social, and other related
support services on a less than 24-hour basis.
``(ii) Custodial care.--The term `custodial
care' means reasonable personal care services
provided to assist with daily living which do
not require the skills of qualified technical
or professional personnel.
``(iii) Respite care.--The term `respite
care' means planned or emergency care intended
to provide temporary relief to a caregiver.
``(C) Care centers.--
``(i) In general.--Eldercare expenses
described in subparagraph (A) which are
incurred for services provided outside the
taxpayer's household by a care center shall be
taken into account only if such center complies
with all applicable laws and regulations of a
State or unit of local government.
``(ii) Care center.--For purposes of this
subparagraph, the term `care center' means any
facility which--
``(I) provides care for more than 6
individuals, and
``(II) receives a fee, payment, or
grant for providing services for any of
the individuals (regardless of whether
such facility is operated for profit).
``(c) Dollar Limitation.--
``(1) In general.--The amount of the eldercare expenses
incurred during any taxable year which may be taken into
account under subsection (a) shall not exceed $6,000.
``(2) Coordination with dependent care assistance
exclusion.--The dollar amount in paragraph (1) shall be reduced
by the aggregate amount excluded from gross income under
section 129 for the taxable year, if any.
``(d) Special Rules.--For purposes of this section--
``(1) Payments to related individuals.--No credit shall be
allowed under subsection (a) for any amount paid to an
individual with respect to whom, for the taxable year, a
deduction under section 151(c) is allowable either to the
taxpayer or the taxpayer's spouse. For purposes of this
paragraph, the term `taxable year' means the taxable year of
the taxpayer in which the service is performed.
``(2) Identifying information required with respect to
service provider.--No credit shall be allowed under subsection
(a) for any amount paid to any person unless--
``(A) the name, address, and taxpayer
identification number of such person are included on
the return claiming the credit, or
``(B) if such person is an organization described
in section 501(c)(3) and exempt from tax under section
501(a), the name and address of such person are
included on the return claiming the credit.
In the case of a failure to provide the information required
under the preceding sentence, the preceding sentence shall not
apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information so required.
``(3) Identifying information required with respect to
qualifying individuals.--No credit shall be allowed under
subsection (a) with respect to any qualifying individual unless
the taxpayer identification number of such individual is
included on the return claiming the credit.
``(e) Denial of Double Benefit.--No credit shall be allowed under
subsection (a) for any amount with respect to which a credit is allowed
under section 21.
``(f) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out the purposes of this section.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25D the
following new item:
``Sec. 25E. Expenses for eldercare.''.
(c) Conforming Amendments.--
(1) Section 213(e) of the Internal Revenue Code of 1986 is
amended--
(A) by inserting ``or section 25E'' after ``section
21'', and
(B) by inserting ``and Elders'' after ``Certain
Dependents'' in the heading.
(2) Section 6213(g)(2) of such Code is amended--
(A) by inserting ``, section 25E (relating to
expenses for care of elders),'' after ``(relating to
expenses for household and dependent care services
necessary for gainful employment)'' in subparagraph
(H), and
(B) by inserting ``, 25E'' after ``24'' in
subparagraph (L).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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