[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6665 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6665

To amend the Internal Revenue Code of 1986 to provide a credit against 
 income tax for individuals who care for certain dependents with long-
                            term care needs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2008

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 a credit against 
 income tax for individuals who care 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 2008''.

SEC. 2. CREDIT FOR CARING FOR DEPENDENTS WITH LONG-TERM CARE NEEDS IN 
              TAXPAYER'S HOME.

    (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 25D the 
following new section:

``SEC. 25E. FAMILY CARE CREDIT.

    ``(a) In General.--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 $3,000 for each qualified family member 
with respect to whom the taxpayer is an eligible caregiver for the 
taxable year.
    ``(b) Limitations.--
            ``(1) Limitation based on number of qualified family 
        members.--The number of qualifying family members which may be 
        taken into account under subsection (a) for the taxable year 
        shall not exceed 2 (4 in the case of a joint return).
            ``(2) Limitation based on adjusted gross income.--
                    ``(A) In general.--The amount of the credit 
                allowable under subsection (a) (determined without 
                regard to this paragraph) shall be reduced (but not 
                below zero) by $100 for each $1,000 (or fraction 
                thereof) by which the taxpayer's modified adjusted 
                gross income exceeds the threshold amount.
                    ``(B) Definitions.--For purposes of subparagraph 
                (A)--
                            ``(i) Modified adjusted gross income.--The 
                        term `modified adjusted gross income' means 
                        adjusted gross income increased by any amount 
                        excluded from gross income under section 911, 
                        931, or 933.
                            ``(ii) Threshold amount.--The term 
                        `threshold amount' means--
                                    ``(I) $200,000 in the case of a 
                                joint return, and
                                    ``(II) $100,000 in any other case.
    ``(c) Qualified Family Member.--For purposes of this section--
            ``(1) In general.--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 section 151(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.
            ``(2) Individuals with long-term care needs.--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.
            ``(3) Identification requirement.--
                    ``(A) In general.--No credit shall be allowed under 
                this section 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.
    ``(d) Special Rules.--
            ``(1) Taxable year must be full taxable year.--Except in 
        the case of a taxable year closed by reason of the death of the 
        taxpayer, no credit shall be allowable under this section in 
        the case of a taxable year covering a period of less than 12 
        months.
            ``(2) Certain rules to apply.--Rules similar to the rules 
        of paragraphs (2), (3), and (4) of section 21(e) shall apply 
        for purposes of this section.''.
    (b) Conforming Amendment.--Paragraph (2) of section 6213(g) of such 
Code (relating to mathematical or clerical error) is amended--
            (1) by striking ``and'' at the end of subparagraph (L), by 
        striking the period at the end of subparagraph (M) and 
        inserting ``, and'', and by inserting after subparagraph (M) 
        the following new subparagraph:
                    ``(N) an omission of a correct TIN or physician 
                identification required under section 25E(c)(3) 
                (relating to family care credit) to be included on a 
                return.'', and
            (2) in the matter preceding clause (i) of subparagraph (L), 
        by inserting ``25E,'' after ``24,''.
    (c) Clerical Amendment.--The table of sections for such subpart A 
is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Family care credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.
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