I

106TH CONGRESS

1ST SESSION H. R. 586

To amend the Internal Revenue Code of 1986 to allow a credit against

income tax for taxpayers with certain persons requiring custodial care

in their households.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 4, 1999

Mr. ENGLISH 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 allow a

credit against income tax for taxpayers with certain persons requiring custodial care in their households.

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

3 SECTION 1. CREDIT FOR TAXPAYERS WITH CERTAIN PER4 SONS REQUIRING CUSTODIAL CARE IN THEIR

5 HOUSEHOLDS.

6 (a) IN GENERAL.—Subpart A of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of

8 1986 (relating to nonrefundable personal credits) is
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1 amended by inserting after section 25A the following new

2 section:

3 ‘‘SEC. 25B. CREDIT FOR TAXPAYERS WITH CERTAIN PER4 SONS REQUIRING CUSTODIAL CARE IN THEIR

5 HOUSEHOLDS.

6 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in7 dividual who maintains a household which includes as a

8 member one or more qualified persons, there shall be al9 lowed as a credit against the tax imposed by this chapter

10 for the taxable year an amount equal to $1,000 for each

11 such person.

12 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN13 COME.—

14 ‘‘(1) IN GENERAL.—The dollar amount in sub15 section (a) shall be reduced (but not below zero) by

16 the amount which bears the same ratio to such dol17 lar amount as—

18 ‘‘(A) the excess of—

19 ‘‘(i) the taxpayer’s modified adjusted

20 gross income for the taxable year, over

21 ‘‘(ii) $70,000 ($140,000 in the case of

22 a joint return), bears to

23 ‘‘(B) $20,000 ($40,000 in the case of a

24 joint return).
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1 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.—

2 For purposes of paragraph (1), the term ‘modified

3 adjusted gross income’ means adjusted gross income

4 determined without regard to sections 911, 931, and

5 933.

6 ‘‘(c) QUALIFIED PERSON.—For purposes of this sec7 tion, the term ‘qualified person’ means any individual—

8 ‘‘(1) who is a father or mother of the taxpayer,

9 his spouse, or his former spouse or who is an ances10 tor of such a father or mother,

11 ‘‘(2) who is physically or mentally incapable of

12 caring for himself,

13 ‘‘(3) who has as his principal place of abode for

14 more than half of the taxable year the home of the

15 taxpayer, and

16 ‘‘(4) whose name and TIN are included on the

17 taxpayer’s return for the taxable year.

18 For purposes of paragraph (1), a stepfather or stepmother

19 shall be treated as a father or mother.

20 ‘‘(d) SPECIAL RULES.—For purposes of this section,

21 rules similar to the rules of paragraphs (1), (2), (3), and

22 (4) of section 21(e) shall apply.’’

23 (b) CLERICAL AMENDMENT.—The table of sections

24 for subpart A of part IV of subchapter A of chapter 1
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1 of such Code is amended by inserting after the item relat2 ing to section 25A the following new item:

‘‘Sec. 25B. Credit for taxpayers with certain persons requiring

custodial care in their households.’’

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

4 this section shall apply to taxable years beginning after

5 December 31, 1999.

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