[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 979 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 979

To provide a tax credit to families with elderly family members living 
                          in the family home.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 1997

  Mr. Specter introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide a tax credit to families with elderly family members living 
                          in the family home.

    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 ELDERLY FAMILY MEMBERS IN 
              THEIR HOUSEHOLDS.

    (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 25A the following new section:

``SEC. 25B. CREDIT FOR TAXPAYERS WITH CERTAIN ELDERLY FAMILY MEMBERS 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 $2,500 for each 
such person.
    ``(b) 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 has attained the age of 65 before the close of 
        the calendar year in which the taxable year begins,
            ``(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.
    ``(c) 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.
    ``(d) Denial of Double Benefit.--No deduction shall be allowed to 
any taxpayer under section 151 for any taxable year with respect to any 
qualified person if a credit is allowed under this section to the 
taxpayer with respect to such person.''
    (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 elderly family members 
                                        in their households.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.
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