[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3308 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3308

 To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for taxpayers with certain persons requiring custodial care 
                          in their households.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 1998

 Mr. English of Pennsylvania 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 allow a credit against 
income tax for taxpayers with certain persons requiring custodial care 
                          in their households.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CREDIT FOR TAXPAYERS WITH CERTAIN PERSONS REQUIRING 
              CUSTODIAL CARE IN THEIR HOUSEHOLDS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25A the 
following new section:

``SEC. 25B. CREDIT FOR TAXPAYERS WITH CERTAIN PERSONS REQUIRING 
              CUSTODIAL CARE IN THEIR HOUSEHOLDS.

    ``(a) Allowance of Credit.--In the case of an individual who 
maintains a household which includes as a member one or more qualified 
persons, there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to $1,000 for each 
such person.
    ``(b) Limitation Based on Adjusted Gross Income.--
            ``(1) In general.--The dollar amount in subsection (a) 
        shall be reduced (but not below zero) by the amount which bears 
        the same ratio to such dollar amount as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's modified adjusted 
                        gross income for the taxable year, over
                            ``(ii) $70,000 ($140,000 in the case of a 
                        joint return), bears to
                    ``(B) $20,000 ($40,000 in the case of a joint 
                return).
            ``(2) Modified adjusted gross income.--For purposes of 
        paragraph (1), the term `modified adjusted gross income' means 
        adjusted gross income determined without regard to sections 
        911, 931, and 933.
    ``(c) Qualified Person.--For purposes of this section, the term 
`qualified person' means any individual--
            ``(1) who is a father or mother of the taxpayer, his 
        spouse, or his former spouse or who is an ancestor of such a 
        father or mother,
            ``(2) who is physically or mentally incapable of caring for 
        himself,
            ``(3) who has as his principal place of abode for more than 
        half of the taxable year the home of the taxpayer, and
            ``(4) whose name and TIN are included on the taxpayer's 
        return for the taxable year.
For purposes of paragraph (1), a stepfather or stepmother shall be 
treated as a father or mother.
    ``(d) Special Rules.--For purposes of this section, rules similar 
to the rules of paragraphs (1), (2), (3), and (4) of section 21(e) 
shall apply.''
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25A the following new 
item:

                              ``Sec. 25B. Credit for taxpayers with 
                                        certain persons requiring 
                                        custodial care in their 
                                        households.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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