[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5491 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5491

  To amend the Internal Revenue Code of 1986 to provide a refundable 
            credit for taxpayers with long-term care needs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 9, 2010

Mr. Carney (for himself and Mr. Platts) 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 refundable 
            credit for taxpayers 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 ``Caregiver Tax Relief Act of 2010''.

SEC. 2. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS.

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

``SEC. 36D. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS.

    ``(a) Allowance of Credit.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this chapter for the taxable year an 
        amount equal to the applicable credit amount multiplied by the 
        number of applicable individuals with respect to whom the 
        taxpayer is an eligible caregiver for the taxable year.
            ``(2) Applicable credit amount.--For purposes of paragraph 
        (1), the applicable credit amount shall be $2,500.
    ``(b) Limitation Based on Adjusted Gross Income.--
            ``(1) In general.--The amount of the credit allowable under 
        subsection (a) 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. 
        For purposes of the preceding sentence, the term `modified 
        adjusted gross income' means adjusted gross income increased by 
        any amount excluded from gross income under section 911, 931, 
        or 933.
            ``(2) Threshold amount.--For purposes of paragraph (1), the 
        term `threshold amount' means--
                    ``(A) $150,000 in the case of a joint return, and
                    ``(B) $75,000 in any other case.
            ``(3) Indexing.--In the case of any taxable year beginning 
        in a calendar year after 2011, each dollar amount contained in 
        paragraph (2) shall be increased by an amount equal to the 
        product of--
                    ``(A) such dollar amount; and
                    ``(B) the medical care cost adjustment determined 
                under section 213(d)(10)(B)(ii) for the calendar year 
                in which the taxable year begins, determined by 
                substituting `2008' for `1996' in subclause (II) 
                thereof. If any increase determined under the preceding 
                sentence is not a multiple of $50, such increase shall 
                be rounded to the next lowest multiple of $50.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Applicable individual.--
                    ``(A) In general.--The term `applicable individual' 
                means, with respect to any taxable year, any individual 
                who has been certified, before the due date for filing 
                the return of tax for the taxable year (without 
                extensions), by a physician (as defined in section 
                1861(r)(1) of the Social Security Act) as being an 
                individual with long-term care needs described in 
                subparagraph (B) for a period--
                            ``(i) which is at least 180 consecutive 
                        days, and
                            ``(ii) a portion of which occurs within the 
                        taxable year.
                Such term shall not include any individual otherwise 
                meeting the requirements of the preceding sentence 
                unless within the 39\1/2\ month period ending on such 
                due date (or such other period as the Secretary 
                prescribes) a physician (as so defined) has certified 
                that such individual meets such requirements.
                    ``(B) Individuals with long-term care needs.--An 
                individual is described in this subparagraph if the 
                individual meets any of the following requirements:
                            ``(i) The individual is at least 18 years 
                        of age and--
                                    ``(I) is unable to perform (without 
                                substantial assistance from another 
                                individual) at least 3 activities of 
                                daily living (as defined in section 
                                7702B(c)(2)(B)) due to a loss of 
                                functional capacity, or
                                    ``(II) requires substantial 
                                supervision to protect such individual 
                                from threats to health and safety due 
                                to severe cognitive impairment and is 
                                unable to perform 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.
                            ``(ii) The individual is at least 6 but not 
                        18 years of age and--
                                    ``(I) is unable to perform (without 
                                substantial assistance from another 
                                individual) at least 3 activities of 
                                daily living (as defined in section 
                                7702B(c)(2)(B)) due to a loss of 
                                functional capacity,
                                    ``(II) requires substantial 
                                supervision to protect such individual 
                                from threats to health and safety due 
                                to severe cognitive impairment and is 
                                unable to perform 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,
                                    ``(III) has a level of disability 
                                similar to the level of disability 
                                described in subclause (I) (as 
                                determined under regulations 
                                promulgated by the Secretary), or
                                    ``(IV) has a complex medical 
                                condition (as defined by the Secretary) 
                                that requires medical management and 
                                coordination of care.
                            ``(iii) The individual is at least 2 but 
                        not 6 years of age and--
                                    ``(I) is unable due to a loss of 
                                functional capacity to perform (without 
                                substantial assistance from another 
                                individual) at least 2 of the following 
                                activities: eating, transferring, or 
                                mobility,
                                    ``(II) has a level of disability 
                                similar to the level of disability 
                                described in subclause (I) (as 
                                determined under regulations 
                                promulgated by the Secretary), or
                                    ``(III) has a complex medical 
                                condition (as defined by the Secretary) 
                                that requires medical management and 
                                coordination of care.
                            ``(iv) The individual is under 2 years of 
                        age and--
                                    ``(I) requires specific durable 
                                medical equipment by reason of a severe 
                                health condition or requires a skilled 
                                practitioner trained to address the 
                                individual's condition to be available 
                                if the individual's parents or 
                                guardians are absent,
                                    ``(II) has a level of disability 
                                similar to the level of disability 
                                described in subclause (I) (as 
                                determined under regulations 
                                promulgated by the Secretary), or
                                    ``(III) has a complex medical 
                                condition (as defined by the Secretary) 
                                that requires medical management and 
                                coordination of care.
                            ``(v) The individual has 5 or more chronic 
                        conditions (as defined in subparagraph (C)) and 
                        is unable to perform (without substantial 
                        assistance from another individual) at least 1 
                        activity of daily living (as so defined) due to 
                        a loss of functional capacity.
                    ``(C) Chronic condition.--For purposes of this 
                paragraph, the term `chronic condition' means a 
                condition that lasts for at least 6 consecutive months 
                and requires ongoing medical care.
            ``(2) Eligible caregiver.--
                    ``(A) In general.--A taxpayer shall be treated as 
                an eligible caregiver for any taxable year with respect 
                to each of the following individuals:
                            ``(i) The taxpayer.
                            ``(ii) The taxpayer's spouse.
                            ``(iii) An individual who is a qualifying 
                        child (as defined in section 152(c)) or a 
                        qualifying relative (as defined in section 
                        152(d)) with respect to whom the taxpayer is 
                        allowed a deduction under section 151(c) for 
                        the taxable year.
                            ``(iv) An individual who would be a 
                        qualifying relative described in clause (iii) 
                        for the taxable year if section 152(d)(1)(B) 
                        were applied by substituting for the exemption 
                        amount an amount equal to the sum of the 
                        exemption amount, the standard deduction under 
                        section 63(c)(2)(C), and any additional 
                        standard deduction under section 63(c)(3) which 
                        would be applicable to the individual if clause 
                        (iii) applied.
                            ``(v) An individual who would be a 
                        qualifying relative described in clause (iii) 
                        for the taxable year if--
                                    ``(I) the requirements of clause 
                                (iv) are met with respect to the 
                                individual; and
                                    ``(II) the requirements of 
                                subparagraph (B) are met with respect 
                                to the individual in lieu of the 
                                support test of section 152(d)(1)(C).
                    ``(B) Residency test.--The requirements of this 
                subparagraph are met if an individual has as his 
                principal place of abode the home of the taxpayer and--
                            ``(i) in the case of an individual who is 
                        an ancestor or descendant of the taxpayer or 
                        the taxpayer's spouse, is a member of the 
                        taxpayer's household for over half the taxable 
                        year, or
                            ``(ii) in the case of any other individual, 
                        is a member of the taxpayer's household for the 
                        entire taxable year.
                    ``(C) Special rules where more than 1 eligible 
                caregiver.--
                            ``(i) In general.--If more than 1 
                        individual is an eligible caregiver with 
                        respect to the same applicable individual for 
                        taxable years ending with or within the same 
                        calendar year, a taxpayer shall be treated as 
                        the eligible caregiver if each such individual 
                        (other than the taxpayer) files a written 
                        declaration (in such form and manner as the 
                        Secretary may prescribe) that such individual 
                        will not claim such applicable individual for 
                        the credit under this section.
                            ``(ii) No agreement.--If each individual 
                        required under clause (i) to file a written 
                        declaration under clause (i) does not do so, 
                        the individual with the highest modified 
                        adjusted gross income (as defined in section 
                        32(c)(5) (as in effect on the day before the 
                        enactment of the Economic Growth and Tax Relief 
                        Reconciliation Act of 2001)) shall be treated 
                        as the eligible caregiver.
                            ``(iii) Married individuals filing 
                        separately.--In the case of married individuals 
                        filing separately, the determination under this 
                        subparagraph as to whether the husband or wife 
                        is the eligible caregiver shall be made under 
                        the rules of clause (ii) (whether or not one of 
                        them has filed a written declaration under 
                        clause (i)).
    ``(d) Identification Requirement.--No credit shall be allowed under 
this section to a taxpayer with respect to any applicable individual 
unless the taxpayer includes the name and taxpayer identification 
number of such individual, and the identification number of the 
physician certifying such individual, on the return of tax for the 
taxable year.
    ``(e) 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.
    ``(f) Citizens or Nationals of Other Countries.--
            ``(1) In general.--The terms `applicable individual' and 
        `eligible caregiver' do not include an individual who is not a 
        citizen or national of the United States unless such individual 
        is a resident alien (as defined in section 7702(b)).
            ``(2) Exception for adopted child.--Paragraph (1) shall not 
        exclude any child of a taxpayer (within the meaning of section 
        152(f)(1)(B)) if--
                    ``(A) for the taxable year of the taxpayer, the 
                child has the same principal place of abode as the 
                taxpayer and is a member of the taxpayer's household, 
                and
                    ``(B) the taxpayer is a citizen, national, or 
                resident alien of the United States.''.
    (b) Conforming Amendments.--
            (1) Section 6213(g)(2) of such Code is amended by striking 
        ``and'' at the end of subparagraph (O), by striking the period 
        at the end of subparagraph (P) and inserting ``, and'', and by 
        inserting after subparagraph (P) the following new 
        subparagraph:
                    ``(Q) an omission of a correct TIN or physician 
                identification required under section 36D(d) (relating 
                to credit for taxpayers with long-term care needs) to 
                be included on a return.''.
            (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 36C the following new item:

``Sec. 36D. Credit for taxpayers with long-term care needs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.
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