[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1214 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1214

  To provide a partially refundable tax credit for caregiving related 
                               expenses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 9, 2003

Ms. Mikulski (for herself, Mrs. Clinton, Mr. Corzine, Mr. Sarbanes, Mr. 
 Johnson, Mr. Lautenberg, Mrs. Murray, Mr. Kennedy, Ms. Landrieu, Mr. 
 Dayton, and Mr. Harkin) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To provide a partially refundable tax credit for caregiving related 
                               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 ``Family Caregiver Relief Act of 
2003''.

SEC. 2. LONG-TERM CARE TAX CREDIT.

    (a) Allowance of Credit.--
            (1) In general.--Paragraph (1) of section 24(a) of the 
        Internal Revenue Code of 1986 (relating to allowance of child 
        tax credit) is amended to read as follows:
            ``(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 sum of--
                    ``(A) the per child amount multiplied by the number 
                of qualifying children of the taxpayer, plus
                    ``(B) the sum of the eligible expenses of the 
                taxpayer, not compensated by insurance or otherwise, 
                for each applicable individual with respect to whom the 
                taxpayer is an eligible caregiver for the taxable 
                year.''.
            (2) Limitation.--Section 24(b) of such Code is amended by 
        redesignating paragraphs (1), (2), and (3) as paragraphs (2), 
        (3), and (4), respectively, and by inserting before paragraph 
        (2) (as redesignated by this paragraph) the following new 
        paragraph:
            ``(1) In general.--The credit allowed under subsection 
        (a)(1)(B) shall not exceed $5,000 for any taxable year.''.
            (3) Conforming amendments.--
                    (A) Section 24(d)(1) of such Code is amended by 
                striking ``subsection (b)(3)'' each place it appears 
                and inserting ``subsection (b)(4)''.
                    (B) The heading for section 24 of such Code is 
                amended to read as follows:

``SEC. 24. FAMILY CARE CREDIT.''.

                    (C) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 24 and inserting 
                the following new item:

``Sec. 24. Family care credit.''.
    (b) Eligible Expenses.--
            (1) In general.--Section 24 of the Internal Revenue Code of 
        1986 is amended by redesignating subsections (b) through (f) as 
        subsections (c) through (g), respectively, and by inserting 
        after subsection (a) the following new subsection:
    ``(b) Eligible Expenses.--For the purposes of this section--
            ``(1) In general.--The term `eligible expenses' means 
        expenses incurred by the taxpayer for--
                    ``(A) medical care (as defined in section 213(d)(1) 
                without regard to subparagraph (D) thereof),
                    ``(B) lodging away from home in accordance with 
                section 213(d)(2),
                    ``(C) adult day care,
                    ``(D) custodial care,
                    ``(E) respite care, and
                    ``(F) other specialized services for children, 
                including day care for children with special needs.
            ``(2) 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 per day basis.
            ``(3) Custodial care.--The term `custodial care' means 
        reasonable personal care services provided to assist with daily 
        living and which do not require the skills of qualified 
        technical or professional personnel.
            ``(4) Respite care.--The term `respite care' means planned 
        or emergency care provided to an applicable individual in order 
        to provide temporary relief to an eligible caregiver.''.
            (2) Conforming amendments.--
                    (A) Section 24(e)(1) of such Code (relating to 
                portion of credit refundable), as redesignated by 
                paragraph (1) and as amended by subsection (a)(3)(A), 
                is amended by striking ``subsection (b)(4)'' each place 
                it appears and inserting ``subsection (c)(4)''.
                    (B) Section 501(c)(26) of such Code is amended by 
                striking ``section 24(c)'' and inserting ``section 
                24(d)''.
                    (C) Section 6211(b)(4)(A) of such Code is amended 
                by striking ``section 24(d)'' and inserting ``section 
                24(e)''.
                    (D) Section 6213(g)(2)(I) of such Code is amended 
                by striking ``section 24(e)'' and inserting ``section 
                24(f)''.
    (c) Definitions.--Subsection (d) of section 24 of the Internal 
Revenue Code of 1986, as redesignated by subsection (b)(1), is amended 
to read as follows:
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualifying child.--
                    ``(A) In general.--The term `qualifying child' 
                means any individual if--
                            ``(i) the taxpayer is allowed a deduction 
                        under section 151 with respect to such 
                        individual for the taxable year,
                            ``(ii) such individual has not attained the 
                        age of 17 as of the close of the calendar year 
                        in which the taxable year of the taxpayer 
                        begins, and
                            ``(iii) such individual bears a 
                        relationship to the taxpayer described in 
                        section 32(c)(3)(B).
                    ``(B) Exception for certain noncitizens.--The term 
                `qualifying child' shall not include any individual who 
                would not be a dependent if the first sentence of 
                section 152(b)(3) were applied without regard to all 
                that follows `resident of the United States'.
            ``(2) 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.
            ``(3) Eligible caregiver.--
                    ``(A) In general.--A taxpayer shall be treated as 
                an eligible caregiver for any taxable year with respect 
                to the following individuals:
                            ``(i) The taxpayer.
                            ``(ii) The taxpayer's spouse.
                            ``(iii) An individual with respect to whom 
                        the taxpayer is allowed a deduction under 
                        section 151 for the taxable year.
                            ``(iv) An individual who would be described 
                        in clause (iii) for the taxable year if section 
                        151(c)(1)(A) 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 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(a).
                    ``(B) Residency test.--The requirements of this 
                subparagraph are met if an individual has as such 
                individual's 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)) 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 Requirements.--
            (1) In general.--Section 24(f) of the Internal Revenue Code 
        of 1986 (relating to identification requirement), as 
        redesignated by subsection(b)(1), is amended by adding at the 
        end the following new sentence: ``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.''.
            (2) Assessment.--Section 6213(g)(2)(I) of such Code is 
        amended--
                    (A) by inserting ``or physician identification'' 
                after ``correct TIN'', and
                    (B) by striking ``child tax'' and inserting 
                ``family care''.
    (e) Denial of Double Benefit.--
            (1) In general.--Section 213(e) of the Internal Revenue 
        Code of 1986 (relating to exclusion of amounts allowed for care 
        of certain dependents) is amended by inserting ``or section 
        24'' after ``section 21''.
            (2) Conforming amendment.--The heading of section 213(e) of 
        such Code is amended by inserting ``Long-Term Care or'' after 
        ``for''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the later of December 31, 2003, 
or the date of the enactment of this Act.
                                 <all>