I 112th CONGRESS 2d Session H. R. 3820 IN THE HOUSE OF REPRESENTATIVES January 24, 2012 Mr. Israel (for himself, Mr. Serrano, Mr. Loebsack, and Mr. Towns) 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 modify the dependent care credit to take into account expenses for care of parents and grandparents who do not live with the taxpayer.

1.

Short title

This Act may be cited as the Elder Care Tax Credit Act of 2012.

2.

Findings

Congress finds the following: (1)More than 10 million people in the United States already have long-term care needs. Studies estimate that unpaid family members deliver an even larger share of the care, and the cost of nursing home care averages $72,000 a year. (2)The proportion of adult children providing personal care or financial assistance to a parent has more than tripled during the past 15 years. (3)Researchers estimate that families furnish the majority of care to people with disabilities. Seventy-two percent of older adults with disabilities receive help with basic personal activities or household chores exclusively from family caregivers.

3.

Modification of credit for expenses for household and dependent care services necessary for gainful employment

(a)

Credit allowed for costs incurred To care for parents and grandparents who do not live with the taxpayer

(1)

In general

Paragraph (1) of section 21(b) of the Internal Revenue Code of 1986 is amended by striking or at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting , or, and by adding at the end the following new subparagraph: (D)a dependent of the taxpayer (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), (d)(1)(B), and (d)(1)(C)) who is the father or mother of the taxpayer (or an ancestor of such father or mother) and who is physically or mentally incapable of caring for himself or herself. . (2)

Conforming amendment

Subparagraph (B) of section 21(b)(1) of such Code is amended by inserting (other than a dependent described in subparagraph (D)) after and (d)(1)(B)). (b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2010.