[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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