II 

110TH CONGRESS 

2D SESSION S. 3365 

To amend the Internal Revenue Code of 1986 to provide for a nonrefundable 

tax credit for long-term care insurance premiums. 

IN THE SENATE OF THE UNITED STATES 

JULY 30, 2008 

Mr. VITTER introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for a nonrefundable tax credit for long-term care insurance premiums. 

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 ‘‘Long-Term Care Fam5 ily Accessibility Act’’. 

6 SEC. 2. NONREFUNDABLE TAX CREDIT FOR LONG-TERM 

7 CARE INSURANCE PREMIUMS. 

8 (a) IN GENERAL.—Subpart A of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 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 LONG-TERM CARE INSURANCE PRE4 MIUMS. 

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 50 percent of 

9 the premiums paid during the taxable year for the 

10 coverage of any eligible beneficiary under any quali11 fied long-term care insurance contract (as defined in 

12 section 7702B(b)). 

13 ‘‘(2) ELIGIBLE BENEFICIARY.—For purposes of 

14 this section, the term ‘eligible beneficiary’ means— 

15 ‘‘(A) the taxpayer, 

16 ‘‘(B) the taxpayer’s spouse, 

17 ‘‘(C) the taxpayer’s child, 

18 ‘‘(D) a parent of the taxpayer or the tax19 payer’s spouse, or 

20 ‘‘(E) any dependent of the taxpayer. 

21 ‘‘(b) LIMITATIONS PER ELIGIBLE BENEFICIARY.— 

22 ‘‘(1) PREMIUM AMOUNT.—The amount of the 

23 premiums incurred during any taxable year which 

24 may be taken into account under subsection (a) with 


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1 respect to each eligible beneficiary shall not exceed 

2 $4,000. 

3 ‘‘(2) LIMITATION BASED ON NONDEPENDENT

4 ELIGIBLE BENEFICIARY’S ADJUSTED GROSS IN5 COME.— 

6 ‘‘(A) IN GENERAL.—No credit shall be al7 lowed under subsection (a) for any taxable year 

8 with respect an eligible beneficiary who is not 

9 a dependent of the taxpayer if such bene10 ficiary’s modified adjusted gross income for 

11 such taxable year exceeds 300 percent of the 

12 Federal poverty line for such taxable year. 

13 ‘‘(B) MODIFIED ADJUSTED GROSS IN14 COME.—For purposes of subparagraph (A), the 

15 term ‘modified adjusted gross income’ means 

16 adjusted gross income increased by any amount 

17 excluded from gross income under section 911, 

18 931, or 933. 

19 ‘‘(C) POVERTY LINE.—For purposes of 

20 subparagraph (A), the term ‘poverty line’ has 

21 the meaning given such term in section 673(2) 

22 of the Community Services Block Grant Act 

23 (42 U.S.C. 9902(2)), including any revision re24 quired by such section. 


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1 ‘‘(c) IDENTIFICATION REQUIREMENT.—No credit 

2 shall be allowed under this section to a taxpayer with re3 spect to any eligible beneficiary unless the taxpayer in4 cludes the name and taxpayer identification number of 

5 such beneficiary on the return of tax for the taxable year. 

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

7 Any amount paid by a taxpayer for any qualified long8 term care insurance contract to which subsection (a) ap9 plies shall not be taken into account in computing the 

10 amount allowable to the taxpayer as a deduction under 

11 section 162(l) or 213(a).’’. 

12 (b) CONFORMING AMENDMENTS.— 

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

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

15 end of subparagraph (L), by striking the period at 

16 the end of subparagraph (M) and inserting ‘‘, and’’, 

17 and by inserting after subparagraph (M) the fol18 lowing new subparagraph: 

19 ‘‘(N) an omission of a correct TIN re20 quired under section 25E(d) (relating to credit 

21 for long-term care insurance premiums) to be 

22 included on a return.’’. 

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

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


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1 amended by inserting after the item relating to sec2 tion 25D the following new item: 

‘‘Sec. 25E. Credit for long-term care insurance premiums.’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2008. 

Æ 


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