[Congressional Record Volume 150, Number 18 (Thursday, February 12, 2004)]
[Senate]
[Pages S1290-S1291]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAIG.
  S. 2072. A bill to amend the Internal Revenue Code of 1986 to allow a 
nonrefundable tax credit for elder care expenses; to the Committee on 
Finance.
  Mr. CRAIG. Mr. President, today I am introducing the Senior Elder 
Care Relief and Empowerment Act--the SECURE Act. The SECURE Act 
provides eligible taxpayers with a non-refundable tax credit equal to 
50 percent of qualified expenses incurred on behalf of senior citizens 
above a $1,000 spending floor.
   The Senate Special Committee on Aging has held several hearings on 
different facets of the growing long-term care crisis in this country. 
A major concern of mine is that the Federal long-term care policy mix 
may not have the right incentives--especially when it comes to the 
tough choices faced by families who want to care for their frail and 
aging relatives.
  Earlier this week, we held a hearing in the Senate Special Committee 
on Aging on a growing issue of national importance--the issue of family 
caregiving for America's seniors.
  Witnesses at the hearing highlighted the emotional stress and 
financial challenges faced by family caregivers of aging and vulnerable 
relatives; and testified favorably about the SECURE Act. Trudy Elliott, 
a witness at the hearing from North Idaho, talked about the stress and 
financial challenges she and her husband faced while caring for her 
mother, sister, and father. Her testimony was very moving. Mrs. 
Elliott, who also works for a company in the home health field, 
testified that her experience was not unique. More and more families 
are facing the stress and financial difficulties that come with caring 
for their aging parents.
  It is critical to note that families, not government, provide 80 
percent of long-term care for older persons in the United States. This 
is an enormous strength of our long-term care system. The U.S. 
Administration on Aging reports that about 22 million people serve as 
informal caregivers for seniors with at least one limitation on their 
activities of daily living.
  These caregivers often face extreme stress and financial burden--
especially those we call the sandwich generation. The sandwich 
generation refers to those sandwiched between caring for their aging 
parents and caring for their own children.
  It is difficult for families to balance caring for children and 
saving or paying for college, while at the same time struggling with 
financing care for frail and aging parents.
  The SECURE Act should not preclude seniors or those near retirement 
from purchasing long-term care insurance. The Act provides tax relief 
for high-risk seniors who cannot qualify for long-term care insurance 
policies.
  For many families, the nursing home is the only solution for 
providing long-term care, and that can be a good choice. For other 
families, keeping aging and vulnerable relatives in their own home or 
in the caregiver's home makes sense.
  An that is why I am introducing the SECURE Act. Families facing high 
levels of stress and eldercare expenses deserve tax relief as they 
freely care for their frail and aging parents.
  We also heard from witnesses at the Aging Committee hearing that the 
SECURE Act will increase the eldercare choices available to families 
and has the potential to reduce the number of seniors forced to spend 
down their nest-egg in order to qualify for Medicaid services.
  Family caregiving for aging and vulnerable relatives requires a 
flexible national response to ensure seniors and their families have 
the most appropriate high quality choices.
  I invite my colleagues to cosponsor this compassionate legislation. I 
ask unanimous consent that the text of the bill and a brief description 
be printed in the Record.
  There being no objection, the materials were ordered to be printed in 
the Record, as follows:

                                S. 2072

       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 ``Senior Elder Care Relief and 
     Empowerment (SECURE) Act''.

     SEC. 2. CREDIT FOR ELDER CARE.

       (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 25B the following new section:

     ``SEC. 25C. ELDER CARE EXPENSES.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter 50 percent of so much of the qualified elder 
     care expenses paid or incurred by the taxpayer with respect 
     to each qualified senior citizen as exceeds $1,000.
       ``(b) Qualified Senior Citizen.--For purposes of this 
     section, the term `qualified senior citizen' means an 
     individual--
       ``(1) who has attained normal retirement age (as determined 
     under section 216 of the Social Security Act) before the 
     close of the taxable year,
       ``(2) who is a chronically ill individual (within the 
     meaning of section 7702B(c)(2)(B)), and
       ``(3) who is--
       ``(A) the taxpayer,
       ``(B) a family member (within the meaning of section 
     529(e)(2)) of the taxpayer, or
       ``(C) a dependent (within the meaning of section 152) of 
     the taxpayer.
       ``(c) Qualified Elder Care Expenses.--For purposes of this 
     section--

[[Page S1291]]

       ``(1) In general.--The term `qualified elder care expenses' 
     means expenses paid or incurred by the taxpayer with respect 
     to the qualified senior citizen for--
       ``(A) qualified long-term care services (as defined in 
     section 7702B(c)),
       ``(B) respite care, or
       ``(C) adult day care.
       ``(2) Exceptions.--The term `qualified elder care expenses' 
     does not include--
       ``(A) any expense to the extent such expense is compensated 
     for by insurance or otherwise, and
       ``(B) any expense paid to a nursing facility (as defined in 
     section 1919 of the Social Security Act).
       ``(d) Other Definitions and Special Rules.--
       ``(1) Adult day care.--The term `adult day care' means care 
     provided for a qualified senior citizen through a structured, 
     community-based group program which provides health, social, 
     and other related support services on a less than 16-hour per 
     day basis.
       ``(2) Respite care.--The term `respite care' means planned 
     or emergency care provided to a qualified senior citizen in 
     order to provide temporary relief to a caregiver of such 
     senior citizen.
       ``(3) Married individuals.--Rules similar to the rules of 
     paragraphs (2), (3), and (4) of section 21(e) shall apply for 
     purposes of this section.
       ``(4) No double benefit.--No deduction or other credit 
     under this chapter shall take into account any expense taken 
     into account for purposes of determining the credit under 
     this section.
       ``(5) 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.
       ``(6) Identifying information required with respect to 
     qualified senior citizens.--No credit shall be allowed under 
     this section with respect to any qualified senior citizen 
     unless the TIN of such senior citizen is included on the 
     return claiming the credit.''.
       (b) Conforming Amendments.--
       (1) Section 6213(g)(2)(H) (relating to mathematical or 
     clerical error) is amended by inserting ``, section 25C 
     (relating to elder care expenses),'' after ``employment)''.
       (2) 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 25B the following new item:

``Sec. 25C. Elder care expenses.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to expenses incurred in taxable years beginning 
     after December 31, 2003.
                                  ____


         Senior Elder Care Relief and Empowerment (SECURE) Act

     How is the tax credit structured?
       50% tax credit rate for qualified expenses for elder care 
     provided to a qualified senior citizen with long-term care 
     needs, for all qualified expenses above a ``floor'' of $1,000 
     already provided by the taxpayer (for example: $500 credit on 
     first $2,000 spent; $10,000 credit on first $21,000 spent)
     What are the qualifications for beneficiaries of the tax 
         credit?
       Must have reached at least normal retirement age under 
     Social Security (currently age 65), Certification by a 
     licensed physican that the cared-for senior is unable to 
     perform at least two basic activities of daily living
     Who can claim the credit?
       Senior for his/her own care, Taxpaying family member, Any 
     taxpaying family claiming the cared-for senior as a dependent
     What are the qualified expenses?
       Un-reimbursable costs (those not covered by Medicare or 
     other insurance), Physical assistance with essential daily 
     activities to prevent injury, Long-term care expenses 
     including normal household services, Architectural expenses 
     necessary to modify the senior's residence, Respite care, 
     Adult daycare, Assisted living services (non-housing related 
     expenses), Independent living, Home care, Home health care.
                                 ______