I 

108TH CONGRESS 

1ST SESSION H. R. 2697

To amend the Internal Revenue Code of 1986 to provide an additional 

personal exemption for certain dependents with long-term care needs. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 10, 2003

Mr. BARRETT of South Carolina introduced the following bill; which was 

referred to the Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to provide 

an additional personal exemption for certain dependents 

with long-term care needs.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Caring Family Act 

5 of 2003’’.

6 SEC. 2. ADDITIONAL PERSONAL EXEMPTION FOR DEPEND7 ENTS WITH LONG-TERM CARE NEEDS IN TAX8 PAYER’S HOME. 

9 (a) IN GENERAL.—Section 151 of the Internal Rev10 enue Code of 1986 (relating to allowance of deductions 
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1 for personal exemptions) is amended by redesignating sub2 sections (d) and (e) as subsections (e) and (f), respectively, 

3 and by inserting after subsection (c) the following new 

4 subsection: 

5 ‘‘(d) ADDITIONAL EXEMPTION FOR DEPENDENTS

6 WITH LONG-TERM CARE NEEDS IN TAXPAYER’S

7 HOME.—

8 ‘‘(1) IN GENERAL.—An exemption of the appli9 cable amount for each qualified family member of 

10 the taxpayer. 

11 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

12 paragraph (1), the applicable amount is the amount 

13 determined in accordance with the following table:

‘‘For taxable years beginning The applicable 

in calendar year— applicable amount is—

2003 and 2004 ......................................................................... $500

2005 and 2006 ......................................................................... 1,000

2007 and 2008 ......................................................................... 1,500

2009 and 2010 ......................................................................... 2,000

2011 and 2012 ......................................................................... 2,500

2013 and thereafter ................................................................. 0.

14 ‘‘(3) QUALIFIED FAMILY MEMBER.—For pur15 poses of this subsection, the term ‘qualified family 

16 member’ means, with respect to any taxable year, 

17 any individual— 

18 ‘‘(A) who is—

19 ‘‘(i) the spouse of the taxpayer, or 
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1 ‘‘(ii) a dependent of the taxpayer with 

2 respect to whom the taxpayer is entitled to 

3 an exemption under subsection (c), 

4 ‘‘(B) who has attained age 60 before the 

5 close of the taxable year, 

6 ‘‘(C) who is an individual with long-term 

7 care needs, and 

8 ‘‘(D) who, for more than one-half of the 

9 taxable year, has as such individual’s principal 

10 place of abode the home of the taxpayer and is 

11 a member of the taxpayer’s household. 

12 ‘‘(4) INDIVIDUALS WITH LONG-TERM CARE

13 NEEDS.—For purposes of this subsection, the term 

14 ‘individual with long-term care needs’ means, with 

15 respect to any taxable year, an individual who has 

16 been certified during such year by a physician (as 

17 defined in section 1861(r)(1) of the Social Security 

18 Act) as being, for a period of at least 180 consecu19 tive days which includes the date of the certifi20 cation— 

21 ‘‘(A) an individual who is unable to per22 form (without substantial assistance from an23 other individual) at least 2 activities of daily liv24 ing (as defined in section 7702B(c)(2)(B)) due 

25 to a loss of functional capacity, or 
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1 ‘‘(B) an individual who requires substan2 tial supervision to protect such individual from 

3 threats to health and safety due to severe cog4 nitive impairment and is unable to perform, 

5 without reminding or cuing assistance, at least 

6 1 activity of daily living (as so defined) or to 

7 the extent provided in regulations prescribed by 

8 the Secretary (in consultation with the Sec9 retary of Health and Human Services), is un10 able to engage in age appropriate activities. 

11 ‘‘(5) IDENTIFICATION REQUIREMENT.—

12 ‘‘(A) IN GENERAL.—No exemption shall be 

13 allowed under this subsection to a taxpayer 

14 with respect to any qualified family member un15 less the taxpayer includes on the return of tax 

16 for the taxable year—

17 ‘‘(i) the name and TIN of such mem18 ber, and 

19 ‘‘(ii) the name and TIN of the physi20 cian certifying such member. 

21 ‘‘(B) EXCEPTION FOR DUE DILIGENCE.—

22 In the case of a failure to provide the informa23 tion required under subparagraph (A)(ii), such 

24 subparagraph shall not apply if it is shown that 
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1 the taxpayer exercised due diligence in attempt2 ing to provide the information so required. 

3 ‘‘(6) SPECIAL RULES.—Rules similar to the 

4 rules of paragraphs (2), (3), and (4) of section 21(e) 

5 shall apply for purposes of this subsection.’’. 

6 (b) CONFORMING AMENDMENTS.—

7 (1) Section 1(f)(6)(A) of such Code is amended 

8 by striking ‘‘151(d)(4)’’ and inserting ‘‘151(e)(4)’’. 

9 (2) Section 1(f)(6)(B) of such Code, as amend10 ed by the Economic Growth and Tax Relief Rec11 onciliation Act of 2001, is amended by striking 

12 ‘‘151(d)(3)(A)’’ and inserting ‘‘151(e)(3)(A)’’. 

13 (3) Section 1(f)(6)(B) of such Code, as in effect 

14 on the day before the date of the enactment of the 

15 Economic Growth and Tax Relief Reconciliation Act 

16 of 2001, is amended by striking ‘‘151(d)(4)(A)’’ and 

17 inserting ‘‘151(e)(4)(A)’’. 

18 (4) Section 3402(f)(1)(A) of such Code is 

19 amended by striking ‘‘151(d)(2)’’ and inserting 

20 ‘‘151(e)(2)’’. 

21 (5) Section 3402(r)(2)(B) of such Code is 

22 amended by striking ‘‘151(d)’’ and inserting 

23 ‘‘151(e)’’. 

24 (6) Section 6012(a)(1)(D)(ii) of such Code is 

25 amended—
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1 (A) by striking ‘‘151(d)’’ and inserting 

2 ‘‘151(e)’’, and 

3 (B) by striking ‘‘151(d)(2)’’ and inserting 

4 ‘‘151(e)(2)’’. 

5 (7) Section 6013(b)(3)(A) of such Code is 

6 amended by striking ‘‘151(d)’’ and inserting 

7 ‘‘151(e)’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2002.

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