[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 234 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                 S. 234

  To amend the Internal Revenue Code of 1986 to provide an income tax 
                     credit for eldercare expenses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 4, 2021

 Ms. Klobuchar (for herself, Mrs. Feinstein, and Ms. Smith) 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 an income tax 
                     credit for eldercare expenses.

    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 ``Americans Giving Care to Elders 
(AGE) Act of 2021''.

SEC. 2. CREDIT FOR ELDERCARE EXPENSES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. EXPENSES FOR ELDERCARE.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual for which 
        there are 1 or more qualifying individuals with respect to such 
        individual, there shall be allowed as a credit against the tax 
        imposed by this chapter for the taxable year an amount equal to 
        the applicable percentage of the eldercare expenses paid by 
        such individual during the taxable year.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the term `applicable percentage' means 20 percent, reduced 
        (but not below zero) by 1 percentage point for each $4,000 (or 
        fraction thereof) by which the taxpayer's adjusted gross income 
        for the taxable year exceeds $120,000.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualifying individual.--The term `qualifying 
        individual' means an individual--
                    ``(A) who has attained age 65,
                    ``(B) who requires assistance with activities of 
                daily living, and
                    ``(C) who is, with respect to the taxpayer or the 
                taxpayer's spouse--
                            ``(i) the father or mother or an ancestor 
                        of such father or mother,
                            ``(ii) the father-in-law or mother-in-law 
                        or an ancestor of such father-in-law or mother-
                        in-law,
                            ``(iii) the stepfather or stepmother or an 
                        ancestor of such stepfather or stepmother, or
                            ``(iv) any other person who, for the 
                        taxable year, has the same principal place of 
                        abode as the taxpayer and is a member of the 
                        household of the taxpayer.
            ``(2) Eldercare expenses.--
                    ``(A) In general.--The term `eldercare expenses' 
                means the following amounts paid for expenses relating 
                to the care of a qualifying individual:
                            ``(i) Medical care (as defined in section 
                        213(d)(1), without regard to subparagraph D 
                        thereof).
                            ``(ii) Lodging away from home in accordance 
                        with section 213(d)(2).
                            ``(iii) Adult day services.
                            ``(iv) Personal care.
                            ``(v) Respite care.
                            ``(vi) Assistive technologies and devices 
                        (including remote health monitoring).
                            ``(vii) Environmental modifications 
                        (including home modifications).
                            ``(viii) Counseling or training for a 
                        caregiver.
                    ``(B) Definitions.--For purposes of subparagraph 
                (A)--
                            ``(i) Adult day services.--The term `adult 
                        day services' means care provided for adults 
                        with functional or cognitive impairments 
                        through a structured, community-based group 
                        program which provides health, social, and 
                        other related support services on a less than 
                        24-hour basis.
                            ``(ii) Personal care.--The term `personal 
                        care' means reasonable personal care services 
                        provided to assist with daily living which do 
                        not require the skills of qualified technical 
                        or professional personnel.
                            ``(iii) Respite care.--The term `respite 
                        care' means planned or emergency care intended 
                        to provide temporary relief to a caregiver.
                    ``(C) Care centers.--
                            ``(i) In general.--Eldercare expenses 
                        described in subparagraph (A) which are 
                        incurred for services provided outside the 
                        taxpayer's household by a care center shall be 
                        taken into account only if such center complies 
                        with all applicable laws and regulations of a 
                        State or unit of local government.
                            ``(ii) Care center.--For purposes of this 
                        subparagraph, the term `care center' means any 
                        facility which--
                                    ``(I) provides care for more than 6 
                                individuals, and
                                    ``(II) receives a fee, payment, or 
                                grant for providing services for any of 
                                the individuals (regardless of whether 
                                such facility is operated for profit).
    ``(c) Dollar Limitation.--
            ``(1) In general.--The amount of the eldercare expenses 
        incurred during any taxable year which may be taken into 
        account under subsection (a) shall not exceed $6,000.
            ``(2) Coordination with dependent care assistance 
        exclusion.--The dollar amount in paragraph (1) shall be reduced 
        by the aggregate amount excluded from gross income under 
        section 129 for the taxable year, if any.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Payments to related individuals.--No credit shall be 
        allowed under subsection (a) for any amount paid to an 
        individual with respect to whom, for the taxable year, a 
        deduction under section 151(c) is allowable either to the 
        taxpayer or the taxpayer's spouse. For purposes of this 
        paragraph, the term `taxable year' means the taxable year of 
        the taxpayer in which the service is performed.
            ``(2) Identifying information required with respect to 
        service provider.--No credit shall be allowed under subsection 
        (a) for any amount paid to any person unless--
                    ``(A) the name, address, and taxpayer 
                identification number of such person are included on 
                the return claiming the credit, or
                    ``(B) if such person is an organization described 
                in section 501(c)(3) and exempt from tax under section 
                501(a), the name and address of such person are 
                included on the return claiming the credit.
        In the case of a failure to provide the information required 
        under the preceding sentence, the preceding sentence shall not 
        apply if it is shown that the taxpayer exercised due diligence 
        in attempting to provide the information so required.
            ``(3) Identifying information required with respect to 
        qualifying individuals.--No credit shall be allowed under 
        subsection (a) with respect to any qualifying individual unless 
        the taxpayer identification number of such individual is 
        included on the return claiming the credit.
    ``(e) Denial of Double Benefit.--No credit shall be allowed under 
subsection (a) for any amount with respect to which a credit is allowed 
under section 21.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the purposes of this section.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Expenses for eldercare.''.
    (c) Conforming Amendments.--
            (1) Section 213(e) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by inserting ``or section 25E'' after ``section 
                21'', and
                    (B) by inserting ``and Elders'' after ``Certain 
                Dependents'' in the heading.
            (2) Section 6213(g)(2) of such Code is amended--
                    (A) by inserting ``, section 25E (relating to 
                expenses for care of elders),'' after ``(relating to 
                expenses for household and dependent care services 
                necessary for gainful employment)'' in subparagraph 
                (H), and
                    (B) by inserting ``, 25E'' after ``24'' in 
                subparagraph (L).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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