[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 94 Introduced in Senate (IS)]







111th CONGRESS
  1st Session
                                 S. 94

      To amend the Internal Revenue Code of 1986 to provide for a 
    nonrefundable tax credit for long-term care insurance premiums.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 6, 2009

  Mr. Vitter 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 provide for a 
    nonrefundable tax credit for long-term care insurance premiums.

    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 ``Long-Term Care Family Accessibility 
Act''.

SEC. 2. NONREFUNDABLE TAX CREDIT FOR LONG-TERM CARE INSURANCE PREMIUMS.

    (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. CREDIT FOR LONG-TERM CARE INSURANCE PREMIUMS.

    ``(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 50 percent of the premiums paid during the 
        taxable year for the coverage of any eligible beneficiary under 
        any qualified long-term care insurance contract (as defined in 
        section 7702B(b)).
            ``(2) Eligible beneficiary.--For purposes of this section, 
        the term `eligible beneficiary' means--
                    ``(A) the taxpayer,
                    ``(B) the taxpayer's spouse,
                    ``(C) the taxpayer's child,
                    ``(D) a parent of the taxpayer or the taxpayer's 
                spouse, or
                    ``(E) any dependent of the taxpayer.
    ``(b) Limitations Per Eligible Beneficiary.--
            ``(1) Premium amount.--The amount of the premiums incurred 
        during any taxable year which may be taken into account under 
        subsection (a) with respect to each eligible beneficiary shall 
        not exceed $4,000.
            ``(2) Limitation based on nondependent eligible 
        beneficiary's adjusted gross income.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for any taxable year with respect an 
                eligible beneficiary who is not a dependent of the 
                taxpayer if such beneficiary's modified adjusted gross 
                income for such taxable year exceeds 300 percent of the 
                Federal poverty line for such taxable year.
                    ``(B) Modified adjusted gross income.--For purposes 
                of subparagraph (A), the term `modified adjusted gross 
                income' means adjusted gross income increased by any 
                amount excluded from gross income under section 911, 
                931, or 933.
                    ``(C) Poverty line.--For purposes of subparagraph 
                (A), the term `poverty line' has the meaning given such 
                term in section 673(2) of the Community Services Block 
                Grant Act (42 U.S.C. 9902(2)), including any revision 
                required by such section.
    ``(c) Identification Requirement.--No credit shall be allowed under 
this section to a taxpayer with respect to any eligible beneficiary 
unless the taxpayer includes the name and taxpayer identification 
number of such beneficiary on the return of tax for the taxable year.
    ``(d) Coordination With Other Deductions.--Any amount paid by a 
taxpayer for any qualified long-term care insurance contract to which 
subsection (a) applies shall not be taken into account in computing the 
amount allowable to the taxpayer as a deduction under section 162(l) or 
213(a).''.
    (b) Conforming Amendments.--
            (1) Section 6213(g)(2) of the Internal Revenue Code of 1986 
        is amended 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 required under 
                section 25E(d) (relating to credit for long-term care 
                insurance premiums) to be included on a return.''.
            (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 25D the following new item:

``Sec. 25E. Credit for long-term care insurance premiums.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
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