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Family Caregiver Relief Act of 2003 (Introduced in Senate)
S 1214 IS
108th CONGRESS
1st Session
S. 1214
To provide a partially refundable tax credit for caregiving related expenses.
IN THE SENATE OF THE UNITED STATES
June 9, 2003
Ms. MIKULSKI (for herself, Mrs. CLINTON, Mr. CORZINE, Mr. SARBANES, Mr. JOHNSON, Mr. LAUTENBERG, Mrs. MURRAY, Mr. KENNEDY, Ms. LANDRIEU, Mr. DAYTON, and Mr. HARKIN) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To provide a partially refundable tax credit for caregiving related 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 `Family Caregiver Relief Act of 2003'.
SEC. 2. LONG-TERM CARE TAX CREDIT.
(1) IN GENERAL- Paragraph (1) of section 24(a) of the Internal Revenue Code of 1986 (relating to allowance of child tax credit) is amended to read as follows:
`(1) IN GENERAL- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of--
`(A) the per child amount multiplied by the number of qualifying children of the taxpayer, plus
`(B) the sum of the eligible expenses of the taxpayer, not compensated by insurance or otherwise, for each applicable individual with respect to whom the taxpayer is an eligible caregiver for the taxable year.'.
(2) LIMITATION- Section 24(b) of such Code is amended by redesignating paragraphs (1), (2), and (3) as paragraphs (2), (3), and (4), respectively, and by inserting before paragraph (2) (as redesignated by this paragraph) the following new paragraph:
`(1) IN GENERAL- The credit allowed under subsection (a)(1)(B) shall not exceed $5,000 for any taxable year.'.
(3) CONFORMING AMENDMENTS-
(A) Section 24(d)(1) of such Code is amended by striking `subsection (b)(3)' each place it appears and inserting `subsection (b)(4)'.
(B) The heading for section 24 of such Code is amended to read as follows:
`SEC. 24. FAMILY CARE CREDIT.'.
(C) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 24 and inserting the following new item:
`Sec. 24. Family care credit.'.
(1) IN GENERAL- Section 24 of the Internal Revenue Code of 1986 is amended by redesignating subsections (b) through (f) as subsections (c) through (g), respectively, and by inserting after subsection (a) the following new subsection:
`(b) ELIGIBLE EXPENSES- For the purposes of this section--
`(1) IN GENERAL- The term `eligible expenses' means expenses incurred by the taxpayer for--
`(A) medical care (as defined in section 213(d)(1) without regard to subparagraph (D) thereof),
`(B) lodging away from home in accordance with section 213(d)(2),
`(F) other specialized services for children, including day care for children with special needs.
`(2) ADULT DAY CARE- The term `adult day care' 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 per day basis.
`(3) CUSTODIAL CARE- The term `custodial care' means reasonable personal care services provided to assist with daily living and which do not require the skills of qualified technical or professional personnel.
`(4) RESPITE CARE- The term `respite care' means planned or emergency care provided to an applicable individual in order to provide temporary relief to an eligible caregiver.'.
(2) CONFORMING AMENDMENTS-
(A) Section 24(e)(1) of such Code (relating to portion of credit refundable), as redesignated by paragraph (1) and as amended by subsection (a)(3)(A), is amended by striking `subsection (b)(4)' each place it appears and inserting `subsection (c)(4)'.
(B) Section 501(c)(26) of such Code is amended by striking `section 24(c)' and inserting `section 24(d)'.
(C) Section 6211(b)(4)(A) of such Code is amended by striking `section 24(d)' and inserting `section 24(e)'.
(D) Section 6213(g)(2)(I) of such Code is amended by striking `section 24(e)' and inserting `section 24(f)'.
(c) DEFINITIONS- Subsection (d) of section 24 of the Internal Revenue Code of 1986, as redesignated by subsection (b)(1), is amended to read as follows:
`(d) DEFINITIONS- For purposes of this section--
`(A) IN GENERAL- The term `qualifying child' means any individual if--
`(i) the taxpayer is allowed a deduction under section 151 with respect to such individual for the taxable year,
`(ii) such individual has not attained the age of 17 as of the close of the calendar year in which the taxable year of the taxpayer begins, and
`(iii) such individual bears a relationship to the taxpayer described in section 32(c)(3)(B).
`(B) EXCEPTION FOR CERTAIN NONCITIZENS- The term `qualifying child' shall not include any individual who would not be a dependent if the first sentence of section 152(b)(3) were applied without regard to all that follows `resident of the United States'.
`(2) APPLICABLE INDIVIDUAL-
`(A) IN GENERAL- The term `applicable individual' means, with respect to any taxable year, any individual who has been certified, before the due date for filing the return of tax for the taxable year (without extensions), by a physician (as defined in section 1861(r)(1) of the Social Security Act) as being an individual with long-term care needs described in subparagraph (B) for a period--
`(i) which is at least 180 consecutive days, and
`(ii) a portion of which occurs within the taxable year.
Such term shall not include any individual otherwise meeting the requirements of the preceding sentence unless within the 39 1/2 month period ending on such due date (or such other period as the Secretary prescribes) a physician (as so defined) has certified that such individual meets such requirements.
`(B) INDIVIDUALS WITH LONG-TERM CARE NEEDS- An individual is described in this subparagraph if the individual meets any of the following requirements:
`(i) The individual is at least 18 years of age and--
`(I) is unable to perform (without substantial assistance from another individual) at least 3 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 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.
`(ii) The individual is at least 6 but not 18 years of age and--
`(I) is unable to perform (without substantial assistance from another individual) at least 3 activities of daily living (as defined in section 7702B(c)(2)(B)) due to a loss of functional capacity,
`(II) requires substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment and is unable to perform 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,
`(III) has a level of disability similar to the level of disability described in subclause (I) (as determined under regulations promulgated by the Secretary), or
`(IV) has a complex medical condition (as defined by the Secretary) that requires medical management and coordination of care.
`(iii) The individual is at least 2 but not 6 years of age and--
`(I) 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,
`(II) has a level of disability similar to the level of disability described in subclause (I) (as determined under regulations promulgated by the Secretary), or
`(III) has a complex medical condition (as defined by the Secretary) that requires medical management and coordination of care.
`(iv) The individual is under 2 years of age and--
`(I) 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,
`(II) has a level of disability similar to the level of disability described in subclause (I) (as determined under regulations promulgated by the Secretary), or
`(III) has a complex medical condition (as defined by the Secretary) that requires medical management and coordination of care.
`(v) The individual has 5 or more chronic conditions (as defined in subparagraph (C)) and is unable to perform (without substantial assistance from another individual) at least 1 activity of daily living (as so defined) due to a loss of functional capacity.
`(C) CHRONIC CONDITION- For purposes of this paragraph, the term `chronic condition' means a condition that lasts for at least 6 consecutive months and requires ongoing medical care.
`(A) IN GENERAL- A taxpayer shall be treated as an eligible caregiver for any taxable year with respect to the following individuals:
`(ii) The taxpayer's spouse.
`(iii) An individual with respect to whom the taxpayer is allowed a deduction under section 151 for the taxable year.
`(iv) An individual who would be described in clause (iii) for the taxable year if section 151(c)(1)(A) were applied by substituting for the exemption amount an amount equal to the sum of the exemption amount, the standard deduction under section 63(c)(2)(C), and any additional standard deduction under section 63(c)(3) which
would be applicable to the individual if clause (iii) applied.
`(v) An individual who would be described in clause (iii) for the taxable year if--
`(I) the requirements of clause (iv) are met with respect to the individual, and
`(II) the requirements of subparagraph (B) are met with respect to the individual in lieu of the support test of section 152(a).
`(B) RESIDENCY TEST- The requirements of this subparagraph are met if an individual has as such individual's principal place of abode the home of the taxpayer and--
`(i) in the case of an individual who is an ancestor or descendant of the taxpayer or the taxpayer's spouse, is a member of the taxpayer's household for over half the taxable year, or
`(ii) in the case of any other individual, is a member of the taxpayer's household for the entire taxable year.
`(C) SPECIAL RULES WHERE MORE THAN 1 ELIGIBLE CAREGIVER-
`(i) IN GENERAL- If more than 1 individual is an eligible caregiver with respect to the same applicable individual for taxable years ending with or within the same calendar year, a taxpayer shall be treated as the eligible caregiver if each such individual (other than the taxpayer) files a written declaration (in such form and manner as the Secretary may prescribe) that such individual will not claim such applicable individual for the credit under this section.
`(ii) NO AGREEMENT- If each individual required under clause (i) to file a written declaration under clause (i) does not do so, the individual with the highest modified adjusted gross income (as defined in section 32(c)(5)) shall be treated as the eligible caregiver.
`(iii) MARRIED INDIVIDUALS FILING SEPARATELY- In the case of married individuals filing separately, the determination under this subparagraph as to whether the husband or wife is the eligible caregiver shall be made under the rules of clause (ii) (whether or not one of them has filed a written declaration under clause (i)).'.
(d) IDENTIFICATION REQUIREMENTS-
(1) IN GENERAL- Section 24(f) of the Internal Revenue Code of 1986 (relating to identification requirement), as redesignated by subsection(b)(1), is amended by adding at the end the following new sentence: `No credit shall be allowed under this section to a taxpayer with respect to any applicable individual unless the taxpayer includes the name and taxpayer identification number of such individual, and the identification number of the physician certifying such individual, on the return of tax for the taxable year.'.
(2) ASSESSMENT- Section 6213(g)(2)(I) of such Code is amended--
(A) by inserting `or physician identification' after `correct TIN', and
(B) by striking `child tax' and inserting `family care'.
(e) DENIAL OF DOUBLE BENEFIT-
(1) IN GENERAL- Section 213(e) of the Internal Revenue Code of 1986 (relating to exclusion of amounts allowed for care of certain dependents) is amended by inserting `or section 24' after `section 21'.
(2) CONFORMING AMENDMENT- The heading of section 213(e) of such Code is amended by inserting `LONG-TERM CARE OR' after `FOR'.
(f) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after the later of December 31, 2003, or the date of the enactment of this Act.
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