[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2697 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 2697

  To amend the Internal Revenue Code of 1986 to provide an additional 
  personal exemption for certain dependents with long-term care needs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 2003

Mr. Barrett of South Carolina 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 an additional 
  personal exemption for certain dependents 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 ``Caring Family Act of 2003''.

SEC. 2. ADDITIONAL PERSONAL EXEMPTION FOR DEPENDENTS WITH LONG-TERM 
              CARE NEEDS IN TAXPAYER'S HOME.

    (a) In General.--Section 151 of the Internal Revenue Code of 1986 
(relating to allowance of deductions for personal exemptions) is 
amended by redesignating subsections (d) and (e) as subsections (e) and 
(f), respectively, and by inserting after subsection (c) the following 
new subsection:
    ``(d) Additional Exemption for Dependents With Long-Term Care Needs 
in Taxpayer's Home.--
            ``(1) In general.--An exemption of the applicable amount 
        for each qualified family member of the taxpayer.
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is the amount determined in accordance 
        with the following table:

``For taxable years beginning                       The applicable
    in calendar year--                      applicable amount is--
    2003 and 2004.................................                $500 
    2005 and 2006.................................               1,000 
    2007 and 2008.................................               1,500 
    2009 and 2010.................................               2,000 
    2011 and 2012.................................               2,500 
    2013 and thereafter...........................                   0.
            ``(3) Qualified family member.--For purposes of this 
        subsection, the term `qualified family member' means, with 
        respect to any taxable year, any individual--
                    ``(A) who is--
                            ``(i) the spouse of the taxpayer, or
                            ``(ii) a dependent of the taxpayer with 
                        respect to whom the taxpayer is entitled to an 
                        exemption under subsection (c),
                    ``(B) who has attained age 60 before the close of 
                the taxable year,
                    ``(C) who is an individual with long-term care 
                needs, and
                    ``(D) who, for more than one-half of the taxable 
                year, has as such individual's principal place of abode 
                the home of the taxpayer and is a member of the 
                taxpayer's household.
            ``(4) Individuals with long-term care needs.--For purposes 
        of this subsection, the term `individual with long-term care 
        needs' means, with respect to any taxable year, an individual 
        who has been certified during such year by a physician (as 
        defined in section 1861(r)(1) of the Social Security Act) as 
        being, for a period of at least 180 consecutive days which 
        includes the date of the certification--
                    ``(A) an individual who is unable to perform 
                (without substantial assistance from another 
                individual) at least 2 activities of daily living (as 
                defined in section 7702B(c)(2)(B)) due to a loss of 
                functional capacity, or
                    ``(B) an individual who requires substantial 
                supervision to protect such individual from threats to 
                health and safety due to severe cognitive impairment 
                and is unable to perform, without reminding or cuing 
                assistance, 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.
            ``(5) Identification requirement.--
                    ``(A) In general.--No exemption shall be allowed 
                under this subsection to a taxpayer with respect to any 
                qualified family member unless the taxpayer includes on 
                the return of tax for the taxable year--
                            ``(i) the name and TIN of such member, and
                            ``(ii) the name and TIN of the physician 
                        certifying such member.
                    ``(B) Exception for due diligence.--In the case of 
                a failure to provide the information required under 
                subparagraph (A)(ii), such subparagraph shall not apply 
                if it is shown that the taxpayer exercised due 
                diligence in attempting to provide the information so 
                required.
            ``(6) Special rules.--Rules similar to the rules of 
        paragraphs (2), (3), and (4) of section 21(e) shall apply for 
        purposes of this subsection.''.
    (b) Conforming Amendments.--
            (1) Section 1(f)(6)(A) of such Code is amended by striking 
        ``151(d)(4)'' and inserting ``151(e)(4)''.
            (2) Section 1(f)(6)(B) of such Code, as amended by the 
        Economic Growth and Tax Relief Reconciliation Act of 2001, is 
        amended by striking ``151(d)(3)(A)'' and inserting 
        ``151(e)(3)(A)''.
            (3) Section 1(f)(6)(B) of such Code, as in effect on the 
        day before the date of the enactment of the Economic Growth and 
        Tax Relief Reconciliation Act of 2001, is amended by striking 
        ``151(d)(4)(A)'' and inserting ``151(e)(4)(A)''.
            (4) Section 3402(f)(1)(A) of such Code is amended by 
        striking ``151(d)(2)'' and inserting ``151(e)(2)''.
            (5) Section 3402(r)(2)(B) of such Code is amended by 
        striking ``151(d)'' and inserting ``151(e)''.
            (6) Section 6012(a)(1)(D)(ii) of such Code is amended--
                    (A) by striking ``151(d)'' and inserting 
                ``151(e)'', and
                    (B) by striking ``151(d)(2)'' and inserting 
                ``151(e)(2)''.
            (7) Section 6013(b)(3)(A) of such Code is amended by 
        striking ``151(d)'' and inserting ``151(e)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.
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