I 

114TH CONGRESS 

2D SESSION H. R. 5196 

To amend the Internal Revenue Code of 1986 to provide an income tax 

credit for eldercare expenses. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2016 

Mr. ISRAEL (for himself and Mr. PETERS) introduced the following bill; which 

was referred to the Committee on Education and the Workforce, and in 

addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

an income tax credit for eldercare expenses. 

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 ‘‘Americans Giving Care 

5 to Elders (AGE) Act of 2016’’. 

6 SEC. 2. CREDIT FOR ELDERCARE EXPENSES. 

7 (a) IN GENERAL.—Subpart A of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 25D the fol2 lowing new section: 

3 ‘‘SEC. 25E. EXPENSES FOR ELDERCARE. 

4 ‘‘(a) ALLOWANCE OF CREDIT.— 

5 ‘‘(1) IN GENERAL.—In the case of an individual 

6 for which there are 1 or more qualifying individuals 

7 (as defined in subsection (b)(1)) with respect to such 

8 individual, there shall be allowed as a credit against 

9 the tax imposed by this chapter for the taxable year 

10 an amount equal to the applicable percentage of the 

11 eldercare expenses (as defined in subsection (b)(2)) 

12 paid by such individual during the taxable year. 

13 ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—For 

14 purposes of paragraph (1), the term ‘applicable per15 centage’ means 20 percent reduced (but not below 

16 zero) by 1 percentage point for each $4,000 (or frac17 tion thereof) by which the taxpayer’s adjusted gross 

18 income for the taxable year exceeds— 

19 ‘‘(A) in the case of a joint return, 

20 $450,000, 

21 ‘‘(B) in the case of a married individual fil22 ing a separate return, $225,000, and 

23 ‘‘(C) in any other case, $400,000. 

24 ‘‘(b) DEFINITIONS OF QUALIFYING INDIVIDUAL AND

25 ELDERCARE EXPENSES.—For purposes of this section— 


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1 ‘‘(1) QUALIFYING INDIVIDUAL.—The term 

2 ‘qualifying individual’ means the father or mother of 

3 the taxpayer or an ancestor of such father or moth4 er, who requires assistance with activities of daily 

5 living. 

6 ‘‘(2) ELDERCARE EXPENSES.— 

7 ‘‘(A) IN GENERAL.—The term ‘eldercare 

8 expenses’ means amounts paid for expenses for 

9 the care of a qualifying individual. 

10 ‘‘(B) CARE CENTERS.—Eldercare expenses 

11 described in subparagraph (A) which are in12 curred for services provided outside the tax13 payer’s household by a care center (as defined 

14 in subparagraph (C)) shall be taken into ac15 count only if such center complies with all ap16 plicable laws and regulations of a State or unit 

17 of local government. 

18 ‘‘(C) CARE CENTER DEFINED.—For pur19 poses of this paragraph, the term ‘care center’ 

20 means any facility which— 

21 ‘‘(i) provides care for more than six 

22 individuals, and 

23 ‘‘(ii) receives a fee, payment, or grant 

24 for providing services for any of the indiVerDate Sep 11 2014 00:48 May 14, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5196.IH H5196

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1 viduals (regardless of whether such facility 

2 is operated for profit). 

3 ‘‘(c) DOLLAR LIMIT ON AMOUNT CREDITABLE.— 

4 ‘‘(1) IN GENERAL.—The amount of the 

5 eldercare expenses incurred during any taxable year 

6 which may be taken into account under subsection 

7 (a) shall not exceed $6,000. 

8 ‘‘(2) COORDINATION WITH DEPENDENT CARE

9 ASSISTANCE EXCLUSION.—The dollar amount in 

10 paragraph (1) shall be reduced by the aggregate 

11 amount excluded from gross income under section 

12 129 for the taxable year. 

13 ‘‘(d) SPECIAL RULES.—For purposes of this sec14 tion— 

15 ‘‘(1) PAYMENTS TO RELATED INDIVIDUALS.— 

16 No credit shall be allowed under subsection (a) for 

17 any amount paid to an individual— 

18 ‘‘(A) with respect to whom, for the taxable 

19 year, a deduction under section 151(c) (relating 

20 to deduction for personal exemptions for de21 pendents) is allowable either to the taxpayer or 

22 his spouse, or 

23 ‘‘(B) who is a child of the taxpayer (within 

24 the meaning of section 152(f)(1)) who has not 


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1 attained the age of 19 at the close of the tax2 able year. 

3 For purposes of this paragraph, the term ‘taxable 

4 year’ means the taxable year of the taxpayer in 

5 which the service is performed. 

6 ‘‘(2) IDENTIFYING INFORMATION REQUIRED

7 WITH RESPECT TO SERVICE PROVIDER.—No credit 

8 shall be allowed under subsection (a) for any amount 

9 paid to any person unless— 

10 ‘‘(A) the name, address, and taxpayer 

11 identification number of such person are in12 cluded on the return claiming the credit, or 

13 ‘‘(B) if such person is an organization de14 scribed in section 501(c)(3) and exempt from 

15 tax under section 501(a), the name and address 

16 of such person are included on the return 

17 claiming the credit. 

18 In the case of a failure to provide the information 

19 required under the preceding sentence, the preceding 

20 sentence shall not apply if it is shown that the tax21 payer exercised due diligence in attempting to pro22 vide the information so required. 

23 ‘‘(3) IDENTIFYING INFORMATION REQUIRED

24 WITH RESPECT TO QUALIFYING INDIVIDUALS.—No 

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1 spect to any qualifying individual unless the tax2 payer identification number of such individual is in3 cluded on the return claiming the credit. 

4 ‘‘(4) MARRIED COUPLES MUST FILE JOINT RE5 TURN.—Rules similar to the rules of paragraphs (2) 

6 and (3) of section 21(e) shall apply. 

7 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 

8 be allowed under subsection (a) for any amount with re9 spect to which a credit is allowed under section 21. 

10 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

11 such regulations as may be necessary to carry out the pur12 poses of this section.’’. 

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

14 for subpart A of part IV of subchapter A of chapter 1 

15 of the Internal Revenue Code of 1986 is amended by in16 serting after the item relating to section 25D the following 

17 new item: 

‘‘Sec. 25E. Expenses for eldercare.’’. 

18 (c) CONFORMING AMENDMENTS.— 

19 (1) Section 213(e) of the Internal Revenue 

20 Code of 1986 is amended— 

21 (A) by inserting ‘‘or section 25E’’ after 

22 ‘‘section 21’’, and 

23 (B) by inserting ‘‘AND ELDERS’’ after 

24 ‘‘CERTAIN DEPENDENTS’’ in the heading. 


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1 (2) Section 6213(g)(2) of such Code is amend2 ed— 

3 (A) by inserting ‘‘, section 25E (relating to 

4 expenses for care of elders),’’ after ‘‘(relating to 

5 expenses for household and dependent care 

6 services necessary for gainful employment)’’ in 

7 subparagraph (H), and 

8 (B) by inserting ‘‘25E,’’ after ‘‘24,’’ in 

9 subparagraph (L). 

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 the date of the enactment of this Act. 

13 SEC. 3. EXTENSION AND INCREASE IN FUNDING FOR THE 

14 NATIONAL FAMILY CAREGIVER SUPPORT 

15 PROGRAM. 

16 (a) IN GENERAL.—Section 303(e) of the Older Amer17 icans Act of 1965 (42 U.S.C. 3023(e)) is amended— 

18 (1) by striking paragraphs (1) and (2) and in19 serting the following: 

20 ‘‘(1) There is authorized to be appropriated to carry 

21 out part E (relating to family caregiver support) 

22 $187,000,000 for each of fiscal years 2017, 2018, 2019, 

23 and 2020.’’; 

24 (2) in paragraph (3), by striking ‘‘paragraphs 

25 (1) and (2)’’ and inserting ‘‘paragraph (1)’’; and 


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1 (3) by redesignating paragraph (3) as para2 graph (2). 

3 (b) CONFORMING AMENDMENT.—Section 

4 373(f)(1)(A) of the Older Americans Act of 1965 (42 

5 U.S.C. 3030s–1(f)(1)(A)) is amended by striking ‘‘fiscal 

6 years 2007, 2008, 2009, 2010, and 2011’’ and inserting 

7 ‘‘fiscal years 2017, 2018, 2019, and 2020’’. 

8 SEC. 4. NATIONAL RESOURCE CENTER ON FAMILY 

9 CAREGIVING. 

10 (a) IN GENERAL.—Part A of title IV of the Older 

11 Americans Act of 1965 (42 U.S.C. 3032 et seq.) is amend12 ed by adding at the end the following: 

13 ‘‘SEC. 423. NATIONAL RESOURCE CENTER ON FAMILY 

14 CAREGIVING. 

15 ‘‘(a) DEFINITIONS.—In this section: 

16 ‘‘(1) PUBLIC OR PRIVATE NONPROFIT ENTI17 TY.—The term ‘public or private nonprofit entity’ 

18 means— 

19 ‘‘(A) a State, a political subdivision of a 

20 State, or an agency or instrumentality of such 

21 a State or political subdivision; or 

22 ‘‘(B) a nonprofit entity that is described in 

23 section 501(c)(3) of the Internal Revenue Code 

24 of 1986 and exempt from taxation under sec25 tion 501(a) of such Code. 


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1 ‘‘(2) STATE.—The term ‘State’ means 1 of the 

2 50 States. 

3 ‘‘(b) ESTABLISHMENT.—The Secretary of Health 

4 and Human Services shall award a grant to or enter into 

5 a cooperative agreement with a public or private nonprofit 

6 entity to establish a National Resource Center on Family 

7 Caregiving (referred to in this section as the ‘Center’). 

8 ‘‘(c) PURPOSES OF NATIONAL RESOURCE CENTER.— 

9 The Center shall— 

10 ‘‘(1) identify, develop, and disseminate informa11 tion on best practices for and evidence-based models 

12 of family caregiver support programs; 

13 ‘‘(2) provide timely information on policy and 

14 program updates relating to family caregivers; 

15 ‘‘(3) partner with related organizations to dis16 seminate practical strategies and tools to support 

17 families in their caregiving roles; 

18 ‘‘(4) convene educational programs and web19 based seminars on family caregiver issues and pro20 gram development; and 

21 ‘‘(5) provide a comprehensive Internet website 

22 with a national searchable database on family care23 giver programs and resources in the States. 


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1 ‘‘(d) AUTHORIZATION.—There is authorized to be ap2 propriated to carry out this section $12,000,000 for the 

3 period of fiscal years 2017 through 2020.’’. 

4 (b) TECHNICAL AMENDMENTS.— 

5 (1) Section 431(a) of such Act (42 U.S.C. 

6 3033(a)) is amended by striking ‘‘or contract’’ the 

7 first place it appears and inserting ‘‘or contract (in8 cluding a cooperative agreement)’’. 

9 (2) Section 432(a) of such Act (42 U.S.C. 

10 3033a(a)) is amended by striking ‘‘and contracts’’ 

11 and inserting ‘‘and contracts (including cooperative 

12 agreements)’’. 

Æ 


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