I 

114TH CONGRESS 

1ST SESSION H. R. 1747 

To amend the Internal Revenue Code of 1986 to provide a credit to individuals for legal expenses paid with respect to establishing guardianship 

of a disabled individual. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 13, 2015 

Mr. DEUTCH 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 

a credit to individuals for legal expenses paid with respect to establishing guardianship of a disabled individual. 

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 ‘‘Special Needs Tax 

5 Credit Act’’. 


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1 SEC. 2. CREDIT FOR LEGAL EXPENSES PAID WITH RESPECT 

2 TO ESTABLISHING GUARDIANSHIP OF A DIS3 ABLED INDIVIDUAL. 

4 (a) IN GENERAL.—Subpart C of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to refundable credits) is amended by insert7 ing after section 36B the following new section: 

8 ‘‘SEC. 36C. CREDIT FOR LEGAL EXPENSES PAID WITH RE9 SPECT TO ESTABLISHING GUARDIANSHIP OF 

10 A DISABLED INDIVIDUAL. 

11 ‘‘(a) IN GENERAL.—In the case of an individual, 

12 there shall be allowed as a credit against the tax imposed 

13 by this subtitle an amount equal to the qualified legal 

14 guardianship expenses paid or incurred by the taxpayer 

15 during the taxable year. 

16 ‘‘(b) DOLLAR LIMITATION.—The credit allowed 

17 under subsection (a) to any taxpayer with respect to any 

18 disabled individual for any taxable year shall not exceed 

19 the excess of— 

20 ‘‘(1) $5,000, over 

21 ‘‘(2) the aggregate amount allowed as credit 

22 under subsection (a) to such taxpayer with respect 

23 to such disabled individual for all prior taxable 

24 years. 

25 ‘‘(c) PHASEOUT BASED ON ADJUSTED GROSS IN26 COME.—The dollar limitation applicable under subsection 


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1 (b) shall be reduced by the amount which bears the same 

2 ratio to such dollar limitation (determined without regard 

3 to this subsection) as— 

4 ‘‘(1) the excess of— 

5 ‘‘(A) the taxpayer’s adjusted gross income, 

6 over 

7 ‘‘(B) $75,000 (twice such amount in the 

8 case of a joint return), bears to 

9 ‘‘(2) $15,000 (twice such amount in the case of 

10 a joint return). 

11 ‘‘(d) QUALIFIED LEGAL GUARDIANSHIP EX12 PENSES.—For purposes of this section, the term ‘qualified 

13 legal guardianship expenses’ means amounts paid or in14 curred by an individual as legal expenses in establishing 

15 such individual as the legal guardian of a disabled indi16 vidual. 

17 ‘‘(e) DISABLED INDIVIDUAL.—For purposes of this 

18 section, the term ‘disabled individual’ means any indi19 vidual who is disabled (within the meaning of section 

20 1614(a)(3) of the Social Security Act).’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 6211(b)(4)(A) of such Code is 

23 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 


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1 (2) Section 1324(b)(2) of title 31, United 

2 States Code, is amended by inserting ‘‘36C,’’ after 

3 ‘‘36B,’’. 

4 (3) The table of sections for subpart C of part 

5 IV of subchapter A of chapter 1 of the Internal Rev6 enue Code of 1986 is amended by inserting after the 

7 item relating to section 36B the following new item: 

‘‘Sec. 36C. Credit for legal expenses paid with respect to establishing guardianship of a disabled individual.’’. 

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

9 this section shall apply to taxable years beginning after 

10 the date of the enactment of this Act. 

Æ 


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