II 109th CONGRESS 1st Session S. 835 IN THE SENATE OF THE UNITED STATES April 18, 2005 Mr. Craig (for himself and Mr. Burns) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow a nonrefundable tax credit for elder care expenses.

1.

Short title

This Act may be cited as the Senior Elder Care Relief and Empowerment (SECURE) Act.

2.

Credit for elder care

(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 25B the following new section:

25C.

Elder care expenses

(a)

Allowance of credit

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter 50 percent of so much of the qualified elder care expenses paid or incurred by the taxpayer with respect to each qualified senior citizen as exceeds $1,000. (b)

Qualified senior citizen

For purposes of this section, the term qualified senior citizen means an individual— (1)who has attained normal retirement age (as determined under section 216 of the Social Security Act) before the close of the taxable year, (2)who is a chronically ill individual (within the meaning of section 7702B(c)(2)(B)), and (3)who is— (A)the taxpayer, (B)a family member (within the meaning of section 529(e)(2)) of the taxpayer, or (C)a dependent (within the meaning of section 152) of the taxpayer. (c)

Qualified elder care expenses

For purposes of this section— (1)

In general

The term qualified elder care expenses means expenses paid or incurred by the taxpayer with respect to the qualified senior citizen for— (A)qualified long-term care services (as defined in section 7702B(c)), (B)respite care, or (C)adult day care. (2)

Exceptions

The term qualified elder care expenses does not include— (A)any expense to the extent such expense is compensated for by insurance or otherwise, and (B)any expense paid to a nursing facility (as defined in section 1919 of the Social Security Act). (d)

Other definitions and special rules

(1)

Adult day care

The term adult day care means care provided for a qualified senior citizen through a structured, community-based group program which provides health, social, and other related support services on a less than 16-hour per day basis. (2)

Respite care

The term respite care means planned or emergency care provided to a qualified senior citizen in order to provide temporary relief to a caregiver of such senior citizen. (3)

Married individuals

Rules similar to the rules of paragraphs (2), (3), and (4) of section 21(e) shall apply for purposes of this section. (4)

No double benefit

No deduction or other credit under this chapter shall take into account any expense taken into account for purposes of determining the credit under this section. (5)

Identifying information required with respect to service provider

No credit shall be allowed under subsection (a) for any amount paid to any person unless— (A)the name, address, and taxpayer identification number of such person are included on the return claiming the credit, or (B)if such person is an organization described in section 501(c)(3) and exempt from tax under section 501(a), the name and address of such person are included on the return claiming the credit. In the case of a failure to provide the information required under the preceding sentence, the preceding sentence shall not apply if it is shown that the taxpayer exercised due diligence in attempting to provide the information so required.(6)

Identifying information required with respect to qualified senior citizens

No credit shall be allowed under this section with respect to any qualified senior citizen unless the TIN of such senior citizen is included on the return claiming the credit.

. (b)

Conforming amendments

(1)Section 6213(g)(2)(H) of the Internal Revenue Code of 1986 (relating to mathematical or clerical error) is amended by inserting , section 25C (relating to elder care expenses), after employment). (2)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 25B the following new item: Sec. 25C. Elder care expenses. . (c)

Effective date

The amendments made by this section shall apply to expenses incurred in taxable years beginning after December 31, 2004.