[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3077 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 3077

   To amend the Internal Revenue Code of 1986 to allow individuals a 
     credit against income tax for medical expenses for dependents.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2005

   Mr. Paul 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 individuals a 
     credit against income tax for medical expenses for dependents.

    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 ``Child Health Care Affordability 
Act''.

SEC. 2. CREDIT FOR MEDICAL EXPENSES FOR DEPENDENTS.

    (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 25B the 
following new section:

``SEC. 25C. MEDICAL EXPENSES FOR DEPENDENTS.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the expenses paid during the 
taxable year, not compensated for by insurance or otherwise, for 
medical care for any dependent of the taxpayer.
    ``(b) Limitations.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        credit allowed by this section shall not exceed $500 per 
        dependent for any taxable year.
            ``(2) Increased credit for terminal diseases, etc.--In the 
        case of expenses for medical care of a dependent who has a 
        terminal disease, cancer (whether or not in remission), a 
        disability, or any other health condition requiring 
        hospitalization or other forms of specialized care, the credit 
        allowed by this section shall not exceed $3,000 for each such 
        dependent for any taxable year.
    ``(c) Portion of Credit Refundable.--
            ``(1) In general.--The aggregate credits allowed to a 
        taxpayer under subpart C shall be increased by the lesser of--
                    ``(A) the credit which would be allowed under this 
                section without regard to this subsection and the 
                limitation under section 26(a), or
                    ``(B) the amount by which the aggregate amount of 
                credits allowed by this subpart (determined without 
                regard to this subsection) would increase if the 
                limitation imposed by section 26(a) were increased by 
                the the taxpayer's social security taxes for the 
                taxable year.
            ``(2) Coordination with nonrefundable credit.--The amount 
        of the credit allowed under this subsection shall not be 
        treated as a credit allowed under this subpart and shall reduce 
        the amount of credit otherwise allowable under subsection (a) 
        without regard to section 26(a).
    ``(d) Definitions.--For purposes of this section--
            ``(1) Medical care.--The term `medical care' has the 
        meaning given such term by section 213.
            ``(2) Dependent.--The term `dependent' has the meaning 
        given such term by section 152.
            ``(3) Disability.--The term `disability' means a condition 
        that requires qualified long-term care services (as defined in 
        section 7702B(c)).
            ``(4) Social security taxes.--The term `social security 
        taxes' has the meaning given such term by section 24(d)(2).
    ``(e) Exclusion of Amounts Allowed for Care of Certain 
Dependents.--Any expense allowed as a credit under section 21 shall not 
be treated as an expense paid for medical care under this section.
    ``(f) Adjustments for Inflation.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2005, the $500 amount 
        contained in subsection (b)(1), and the $3,000 amount contained 
        in subsection (b)(2), shall each be increased by an amount 
        equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins by substituting `calendar year 
                2004' for `calendar year 1992' in subparagraph (B) 
                thereof.
            ``(2) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $10, such increase shall be rounded to 
        the next highest multiple of $10.
    ``(g) Regulations.--The Secretary shall prescribe regulations to 
carry out this section, including regulations providing for claiming 
the credit under this section on Form 1040EZ.''.
    (b) Denial of Double Benefit for Medical Expenses Deduction.--
Subsection (e) of section 213 of such Code is amended by inserting ``or 
25C'' after ``section 21''.
    (c) Conforming Amendments.--
            (1) The table of sections for such subpart A is amended by 
        inserting after the item relating to section 25B the following 
        new item:

``Sec. 25C. Medical expenses for dependents.''.
            (2) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by striking ``section 35'' and 
        inserting ``section 25C or 35''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid after the date of the enactment of this Act in 
taxable years ending after such date.
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