I 

111TH CONGRESS 

2D SESSION H. R. 6234 

To amend the Internal Revenue Code of 1986 to allow individuals a deduction 

for qualified long-term care insurance premiums, a credit for individuals 

who care for those with long-term care needs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 28, 2010 

Ms. HERSETH SANDLIN (for herself and Mr. HINCHEY) 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 individuals a deduction for qualified long-term care insurance 

premiums, a credit for individuals who care for those 

with long-term care needs, and for other purposes. 

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 ‘‘Comprehensive Long5 Term Care Support Act of 2010’’. 

6 SEC. 2. FINDINGS. 

7 The Congress hereby finds: 


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1 (1) As our Nation’s seniors live longer lives, the 

2 United States faces a major challenge in long-term 

3 health care needs. 

4 (2) The United States does not have a com5 prehensive system to support long-term care needs. 

6 (3) Eighty-six percent of people age 85 and 

7 older have at least one chronic condition which can 

8 cause pain, disability, and loss of functioning. 

9 (4) Long-term care is expected to place a huge 

10 burden on State Medicaid programs, which are the 

11 primary source of funding for nursing homes. 

12 SEC. 3. DEDUCTION FOR QUALIFIED LONG-TERM CARE IN13 SURANCE PREMIUMS. 

14 (a) IN GENERAL.—Part VII of subchapter B of chap15 ter 1 of the Internal Revenue Code of 1986 (relating to 

16 additional itemized deductions) is amended by redesig17 nating section 224 as section 225 and by inserting after 

18 section 223 the following new section: 

19 ‘‘SEC. 224. PREMIUMS ON QUALIFIED LONG-TERM CARE IN20 SURANCE CONTRACTS. 

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

22 there shall be allowed as a deduction an amount equal to 

23 the applicable percentage of the amount of eligible long24 term care premiums (as defined in section 213(d)(10)) 

25 paid during the taxable year for coverage for the taxpayer 


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1 or any member of the family of the taxpayer under a quali2 fied long-term care insurance contract (as defined in sec3 tion 7702B(b)). 

4 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

5 subsection (a), the applicable percentage shall be deter6 mined in accordance with the following table: 

‘‘The taxable years beginning in 

calendar year: 

The applicable percentage 

is: 

2011 .................................................................................. 50

2012 .................................................................................. 75

2013 or thereafter ............................................................. 100. 

7 ‘‘(c) MEMBER OF THE FAMILY.—For purposes of 

8 this section, the term ‘member of the family’ means, with 

9 respect to any individual— 

10 ‘‘(1) the spouse of the individual, 

11 ‘‘(2) an ancestor or lineal descendant of the in12 dividual or the individual’s spouse, 

13 ‘‘(3) a brother or sister of the individual or any 

14 individual described in paragraph (1) or (2), and 

15 ‘‘(4) the spouse of any individual described in 

16 paragraph (2) or (3). 

17 ‘‘(d) COORDINATION WITH OTHER DEDUCTIONS.— 

18 Any amount paid by a taxpayer for any qualified long19 term care insurance contract to which subsection (a) ap20 plies shall not be taken into account in computing the 

21 amount allowable to the taxpayer as a deduction under 

22 section 162(l) or 213(a).’’. 


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1 (b) LONG-TERM CARE INSURANCE PERMITTED TO

2 BE OFFERED UNDER CAFETERIA PLANS AND FLEXIBLE

3 SPENDING ARRANGEMENTS.— 

4 (1) CAFETERIA PLANS.— 

5 (A) Section 125(f) of the Internal Revenue 

6 Code of 1986 (defining qualified benefits), as in 

7 effect for taxable years beginning before Janu8 ary 1, 2014, is amended by inserting before the 

9 period at the end ‘‘; except that such term shall 

10 include the payment of premiums for any quali11 fied long-term care insurance contract (as de12 fined in section 7702B) to the extent the 

13 amount of such payment does not exceed the el14 igible long-term care premiums (as defined in 

15 section 213(d)(10)) for such contract’’. 

16 (B) Section 125(f)(2) of such Code, as in 

17 effect for taxable years beginning after Decem18 ber 31, 2013, is amended by inserting before 

19 the period at the end ‘‘; except that such term 

20 shall include the payment of premiums for any 

21 qualified long-term care insurance contract (as 

22 defined in section 7702B) to the extent the 

23 amount of such payment does not exceed the el24 igible long-term care premiums (as defined in 

25 section 213(d)(10)) for such contract’’. 


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1 (2) FLEXIBLE SPENDING ARRANGEMENTS.— 

2 Section 106 of such Code (relating to contributions 

3 by an employer to accident and health plans) is 

4 amended by striking subsection (c). 

5 (c) CONFORMING AMENDMENTS.— 

6 (1) Section 62(a) of the Internal Revenue Code 

7 of 1986 is amended by inserting after paragraph 

8 (21) the following new item: 

9 ‘‘(22) PREMIUMS ON QUALIFIED LONG-TERM

10 CARE INSURANCE CONTRACTS.—The deduction al11 lowed by section 224.’’. 

12 (2) The table of sections for part VII of sub13 chapter B of chapter 1 of such Code is amended by 

14 striking the last item and inserting the following 

15 new items: 

‘‘Sec. 224. Premiums on qualified long-term care insurance contracts. 

‘‘Sec. 225. Cross reference.’’. 

16 (d) EFFECTIVE DATES.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2010. 

19 SEC. 4. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE 

20 NEEDS. 

21 (a) IN GENERAL.—Subpart A of part IV of sub22 chapter A of chapter 1 of the Internal Revenue Code of 

23 1986 (relating to nonrefundable personal credits) is 


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1 amended by inserting after section 25D the following new 

2 section: 

3 ‘‘SEC. 25E. CREDIT FOR TAXPAYERS WITH LONG-TERM 

4 CARE NEEDS. 

5 ‘‘(a) ALLOWANCE OF CREDIT.— 

6 ‘‘(1) IN GENERAL.—There shall be allowed as a 

7 credit against the tax imposed by this chapter for 

8 the taxable year an amount equal to the applicable 

9 credit amount multiplied by the number of applica10 ble individuals with respect to whom the taxpayer is 

11 an eligible caregiver for the taxable year. 

12 ‘‘(2) APPLICABLE CREDIT AMOUNT.—For pur13 poses of paragraph (1), the applicable credit amount 

14 shall be determined in accordance with the following 

15 table: 

‘‘For taxable years beginning in 

calendar year: 

The applicable credit 

amount is: 

2011 .................................................................................. $1,000

2012 .................................................................................. $1,500

2013 .................................................................................. $2,000

2014 .................................................................................. $2,500

2015 or thereafter ............................................................. $3,000. 

16 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN17 COME.— 

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

19 allowable under subsection (a) shall be reduced (but 

20 not below zero) by $100 for each $1,000 (or fraction 

21 thereof) by which the taxpayer’s modified adjusted 


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1 gross income exceeds the threshold amount. For 

2 purposes of the preceding sentence, the term ‘modi3 fied adjusted gross income’ means adjusted gross in4 come increased by any amount excluded from gross 

5 income under section 911, 931, or 933. 

6 ‘‘(2) THRESHOLD AMOUNT.—For purposes of 

7 paragraph (1), the term ‘threshold amount’ means— 

8 ‘‘(A) $150,000 in the case of a joint re9 turn, and 

10 ‘‘(B) $75,000 in any other case. 

11 ‘‘(3) INDEXING.—In the case of any taxable 

12 year beginning in a calendar year after 2011, each 

13 dollar amount contained in paragraph (2) shall be 

14 increased by an amount equal to the product of— 

15 ‘‘(A) such dollar amount, and 

16 ‘‘(B) the medical care cost adjustment de17 termined under section 213(d)(10)(B)(ii) for 

18 the calendar year in which the taxable year be19 gins, determined by substituting ‘August of 

20 2010’ for ‘August of 1996’ in subclause (II) 

21 thereof. 

22 If any increase determined under the preceding sen23 tence is not a multiple of $50, such increase shall 

24 be rounded to the next lowest multiple of $50. 

25 ‘‘(c) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) APPLICABLE INDIVIDUAL.— 

2 ‘‘(A) IN GENERAL.—The term ‘applicable 

3 individual’ means, with respect to any taxable 

4 year, any individual who has been certified, be5 fore the due date for filing the return of tax for 

6 the taxable year (without extensions), by a phy7 sician (as defined in section 1861(r)(1) of the 

8 Social Security Act) as being an individual with 

9 long-term care needs described in subparagraph 

10 (B) for a period— 

11 ‘‘(i) which is at least 180 consecutive 

12 days, and 

13 ‘‘(ii) a portion of which occurs within 

14 the taxable year. 

15 Such term shall not include any individual oth16 erwise meeting the requirements of the preceding sentence unless within the 391 17 ⁄2 month 

18 period ending on such due date (or such other 

19 period as the Secretary prescribes) a physician 

20 (as so defined) has certified that such indi21 vidual meets such requirements. 

22 ‘‘(B) INDIVIDUALS WITH LONG-TERM CARE

23 NEEDS.—An individual is described in this sub24 paragraph if the individual meets any of the fol25 lowing requirements: 


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1 ‘‘(i) The individual is at least 6 years 

2 of age and— 

3 ‘‘(I) is unable to perform (with4 out substantial assistance from an5 other individual) at least 3 activities 

6 of daily living (as defined in section 

7 7702B(c)(2)(B)) due to a loss of 

8 functional capacity, or 

9 ‘‘(II) requires substantial super10 vision to protect such individual from 

11 threats to health and safety due to se12 vere cognitive impairment and is un13 able to preform, without reminding or 

14 cuing assistance, at least 1 activity of 

15 daily living (as so defined) or to the 

16 extent provided in regulations pre17 scribed by the Secretary (in consulta18 tion with the Secretary of Health and 

19 Human Services), is unable to engage 

20 in age appropriate activities. 

21 ‘‘(ii) The individual is at least 2 but 

22 not 6 years of age and is unable due to a 

23 loss of functional capacity to perform 

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1 other individual) at least 2 of the following 

2 activities: eating, transferring, or mobility. 

3 ‘‘(iii) The individual is under 2 years 

4 of age and requires specific durable med5 ical equipment by reason of a severe health 

6 condition or requires a skilled practitioner 

7 trained to address the individual’s condi8 tion to be available if the individual’s par9 ents or guardians are absent. 

10 ‘‘(2) ELIGIBLE CAREGIVER.— 

11 ‘‘(A) IN GENERAL.—A taxpayer shall be 

12 treated as an eligible caregiver for any taxable 

13 year with respect to the following individuals: 

14 ‘‘(i) The taxpayer. 

15 ‘‘(ii) The taxpayer’s spouse. 

16 ‘‘(iii) An individual with respect to 

17 whom the taxpayer is allowed a deduction 

18 under section 151 for the taxable year. 

19 ‘‘(iv) An individual who would be de20 scribed in clause (iii) for the taxable year 

21 if section 152(d)(1)(B) were applied by 

22 substituting for the exemption amount an 

23 amount equal to the sum of the exemption 

24 amount, the standard deduction under sec25 tion 63(c)(2)(C), and any additional standVerDate Mar 15 2010 02:35 Oct 05, 2010 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H6234.IH H6234

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1 ard deduction under section 63(c)(3) which 

2 would be applicable to the individual if 

3 clause (iii) applied. 

4 ‘‘(v) An individual who would be de5 scribed in clause (iii) for the taxable year 

6 if the requirements of clause (iv) are met 

7 with respect to the individual and section 

8 152(c)(1) were applied without regard to 

9 subparagraph (D). 

10 ‘‘(B) SPECIAL RULES WHERE MORE THAN

11 1 ELIGIBLE CAREGIVER.— 

12 ‘‘(i) IN GENERAL.—If more than 1 in13 dividual is an eligible caregiver with re14 spect to the same applicable individual for 

15 taxable years ending with or within the 

16 same calendar year, a taxpayer shall be 

17 treated as the eligible caregiver if each 

18 such individual (other than the taxpayer) 

19 files a written declaration (in such form 

20 and manner as the Secretary may pre21 scribe) that such individual will not claim 

22 such applicable individual for the credit 

23 under this section. 

24 ‘‘(ii) NO AGREEMENT.—If each indi25 vidual required under clause (i) to file a 


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1 written declaration under clause (i) does 

2 not do so, the individual with the highest 

3 modified adjusted gross income (as defined 

4 in section 32(c)(5)) shall be treated as the 

5 eligible caregiver. 

6 ‘‘(iii) MARRIED INDIVIDUALS FILING

7 SEPARATELY.—In the case of married indi8 viduals filing separately, the determination 

9 under this subparagraph as to whether the 

10 husband or wife is the eligible caregiver 

11 shall be made under the rules of clause (ii) 

12 (whether or not one of them has filed a 

13 written declaration under clause (i)). 

14 ‘‘(d) IDENTIFICATION REQUIREMENT.—No credit 

15 shall be allowed under this section to a taxpayer with re16 spect to any applicable individual unless the taxpayer in17 cludes the name and taxpayer identification number of 

18 such individual, and the identification number of the phy19 sician certifying such individual, on the return of tax for 

20 the taxable year. 

21 ‘‘(e) TAXABLE YEAR MUST BE FULL TAXABLE

22 YEAR.—Except in the case of a taxable year closed by rea23 son of the death of the taxpayer, no credit shall be allow24 able under this section in the case of a taxable year cov25 ering a period of less than 12 months.’’. 


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1 (b) CONFORMING AMENDMENTS.— 

2 (1) Section 6213(g)(2) of the Internal Revenue 

3 Code of 1986 is amended by striking ‘‘and’’ at the 

4 end of subparagraph (O), by striking the period at 

5 the end of subparagraph (P) and inserting ‘‘, and’’, 

6 and by inserting after subparagraph (P) the fol7 lowing new subparagraph: 

8 ‘‘(Q) an omission of a correct TIN or phy9 sician identification required under section 

10 25E(d) (relating to credit for taxpayers with 

11 long-term care needs) to be included on a re12 turn.’’. 

13 (2) The table of sections for subpart A of part 

14 IV of subchapter A of chapter 1 of such Code is 

15 amended by inserting after the item relating to sec16 tion 25D the following new item: 

‘‘Sec. 25E. Credit for taxpayers with long-term care needs.’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2010. 

Æ 


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