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:

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.