[Congressional Record Volume 163, Number 194 (Wednesday, November 29, 2017)]
[Senate]
[Pages S7408-S7409]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1589. Mrs. ERNST (for herself and Mrs. Capito) submitted an
amendment intended to be proposed by her to the bill H.R. 1, to provide
for reconciliation pursuant to titles II and V of the concurrent
resolution on the budget for fiscal year 2018; which was ordered to lie
on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. CREDIT FOR WORKING FAMILY CAREGIVERS.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 is amended by inserting after section 25D the
following new section:
``SEC. 25E. WORKING FAMILY CAREGIVERS.
``(a) Allowance of Credit.--In the case of an eligible
caregiver, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal
to 30 percent of the qualified expenses paid by the taxpayer
during the taxable year to the extent that such expenses
exceed $2,000.
``(b) Limitation.--
``(1) In general.--The amount allowed as a credit under
subsection (a) for the taxable year shall not exceed $3,000.
``(2) Adjustment for inflation.--In the case of any taxable
year beginning after 2018, the dollar amount contained in
paragraph (1) 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 `2017' 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) Eligible Caregiver.--For purposes of this section,
the term `eligible caregiver' means an individual who--
``(1) during the taxable year pays or incurs qualified
expenses in connection with providing care for a qualified
care recipient, and
``(2) has earned income (as defined in section 32(c)(2))
for the taxable year in excess of $7,500.
``(d) Qualified Care Recipient.--For purposes of this
section--
``(1) In general.--The term `qualified care recipient'
means, with respect to any taxable year, any individual who--
``(A) is the spouse of the eligible caregiver, or any other
person who bears a relationship to the eligible caregiver
described in any of subparagraphs (A) through (H) of section
152(d)(2), and
``(B) has been certified, before the due date for filing
the return of tax for the taxable year, by a licensed health
care practitioner (as defined in section 7702B(c)(4)) as
being an individual with long-term care needs described in
paragraph (3) for a period--
``(i) which is at least 180 consecutive days, and
``(ii) a portion of which occurs within the taxable year.
``(2) Period for making certification.--Notwithstanding
paragraph (1)(B), a certification shall not be treated as
valid unless it
[[Page S7409]]
is made within the 39\1/2\-month period ending on such due
date (or such other period as the Secretary prescribes).
``(3) Individuals with long-term care needs.--An individual
is described in this paragraph if the individual meets any of
the following requirements:
``(A) The individual is at least 6 years of age and--
``(i) is unable to perform (without substantial assistance
from another individual) at least 2 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, without
reminding or cuing assistance, 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.
``(B) The individual is at least 2 but not 6 years of age
and 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.
``(C) The individual is under 2 years of age and 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.
``(e) Qualified Expenses.--For purposes of this section--
``(1) In general.--Subject to paragraph (4), the term
`qualified expenses' means expenditures for goods, services,
and supports that--
``(A) assist a qualified care recipient with accomplishing
activities of daily living (as defined in section
7702B(c)(2)(B)) and instrumental activities of daily living
(as defined in section 1915(k)(6)(F) of the Social Security
Act (42 U.S.C. 1396n(k)(6)(F))), and
``(B) are provided solely for use by such qualified care
recipient.
``(2) Adjustment for other tax benefits.--The amount of
qualified expenses otherwise taken into account under
paragraph (1) with respect to an individual shall be reduced
by the sum of any amounts paid for the benefit of such
individual for the taxable year which are--
``(A) taken into account under section 21 or 213, or
``(B) excluded from gross income under section 129, 223(f),
or 529A(c)(1)(B).
``(3) Goods, services, and supports.--For purposes of
paragraph (1), goods, services, and supports (as defined by
the Secretary) shall include--
``(A) human assistance, supervision, cuing and standby
assistance,
``(B) assistive technologies and devices (including remote
health monitoring),
``(C) environmental modifications (including home
modifications),
``(D) health maintenance tasks (such as medication
management),
``(E) information,
``(F) transportation of the qualified care recipient,
``(G) non-health items (such as incontinence supplies), and
``(H) coordination of and services for people who live in
their own home, a residential setting, or a nursing facility,
as well as the cost of care in these or other locations.
``(4) Qualified expenses for eligible caregivers.--For
purposes of paragraph (1), the following shall be treated as
qualified expenses if paid or incurred by an eligible
caregiver:
``(A) Expenditures for respite care for a qualified care
recipient.
``(B) Expenditures for counseling, support groups, or
training relating to caring for a qualified care recipient.
``(C) Lost wages for unpaid time off due to caring for a
qualified care recipient as verified by an employer.
``(D) Travel costs of the eligible caregiver related to
caring for a qualified care recipient.
``(E) Expenditures for technologies, as determined by the
Secretary, that assist an eligible caregiver in providing
care for a qualified care recipient.
``(5) Human assistance.--The term `human assistance'
includes the costs of a direct care worker.
``(6) Documentation.--An expense shall not be taken into
account under this section unless the eligible caregiver
substantiates such expense under such regulations or guidance
as the Secretary shall provide.
``(7) Mileage rate.--For purposes of this section, the
mileage rate for the use of a passenger automobile shall be
the standard mileage rate used to calculate the deductible
costs of operating an automobile for medical purposes. Such
rate may be used in lieu of actual automobile-related travel
expenses.
``(8) Coordination with able accounts.--Qualified expenses
for a taxable year shall not include contributions to an ABLE
account (as defined in section 529A).
``(f) Phase Out Based on Adjusted Gross Income.--For
purposes of this section--
``(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.
``(2) Modified adjusted gross income.--The term `modified
adjusted gross income' means adjusted gross income increased
by any amount excluded from gross income under section 911,
931, or 933.
``(3) Threshold amount.--The term `threshold amount'
means--
``(A) $150,000 in the case of a joint return, and
``(B) $75,000 in any other case.
``(4) Indexing.--In the case of any taxable year beginning
in a calendar year after 2018, each dollar amount contained
in paragraph (3) shall be increased by an amount equal to the
product of--
``(A) such dollar amount, and
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting ``calendar year
2017'' for ``calendar year 2016'' in subparagraph (A)(ii)
thereof.
``(5) Rounding rule.--If any increase determined under
paragraph (4) is not a multiple of $50, such increase shall
be rounded to the next lowest multiple of $50.
``(g) Identification of Eligible Caregiver With Care
Recipient (Qualified Care Recipient) Identification
Requirement.--No credit shall be allowed under this section
to a taxpayer with respect to any qualified care recipient
unless the taxpayer includes the name and taxpayer
identification number of such individual, and the
identification number of the licensed health care
practitioner certifying such individual, on the return of tax
for the taxable year.''.
(b) Clerical Amendment.--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. Working family caregivers.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2017.
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