I 111th CONGRESS 1st Session H. R. 2705 IN THE HOUSE OF REPRESENTATIVES June 4, 2009 Mr. McDermott 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 a refundable credit for advance directives.

1.

Short title

This Act may be cited as the Advance Directive Incentive Act.

2.

Refundable credit for advance directives

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36A the following new section:

36B.

Advance directives

(a)

Allowance of credit

In the case of an individual, there shall be allowed to the taxpayer as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 30 percent of qualified expenses of the taxpayer. (b)

Limitation

(1)

In general

The aggregate amount of expenses which may be taken into account under subsection (a) for the taxable year shall not exceed $500, reduced (but not below zero) by the amount of expenses taken into account under this section for all prior taxable years. (2)

Special rule

For purposes of paragraph (1), in the case of a joint return for any prior taxable year, amounts taken into account under this section shall be treated as expenses of both the husband and the wife. (c)

Qualified expenses

For purposes of this section— (1)

Qualified expenses

The term qualified expenses means legal fees incurred for the purpose of establishing an advance directive. (2)

Advance directive

The term advance directive means, with respect to an individual, a written instruction, such as a living will or durable power of attorney for health care or establishment of a health care proxy, recognized under State law (whether statutory or as recognized by the courts of the State) and relating to the provision of medical care in the case the individual is incapacitated.

. (b)

Conforming amendments

(1)Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36B, after section 36A,. (2)The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36A the following new item: Sec. 36B. Advance directives. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2009.