I 

117TH CONGRESS 

1ST SESSION H. R. 3689 

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

credit for eldercare expenses. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 4, 2021 

Mrs. AXNE (for herself, Ms. SCHAKOWSKY, and Mr. MCKINLEY) 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 

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 2021’’. 

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 

9 1986 is amended by inserting after section 25D the fol10 lowing new section: 


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

2 ‘‘(a) ALLOWANCE OF CREDIT.— 

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

4 for which there are 1 or more qualifying individuals 

5 with respect to such individual, there shall be al6 lowed as a credit against the tax imposed by this 

7 chapter for the taxable year an amount equal to the 

8 applicable percentage of the eldercare expenses paid 

9 by such individual during the taxable year. 

10 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

11 of paragraph (1), the term ‘applicable percentage’ 

12 means 20 percent, reduced (but not below zero) by 

13 1 percentage point for each $4,000 (or fraction 

14 thereof) by which the taxpayer’s adjusted gross in15 come for the taxable year exceeds $120,000. 

16 ‘‘(b) DEFINITIONS.—For purposes of this section— 

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

18 ‘qualifying individual’ means an individual— 

19 ‘‘(A) who has attained age 60, 

20 ‘‘(B) who requires assistance with activities 

21 of daily living, and 

22 ‘‘(C) who is, with respect to the taxpayer 

23 or the taxpayer’s spouse— 

24 ‘‘(i) the father or mother or an ances25 tor of such father or mother, 


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1 ‘‘(ii) the father-in-law or mother-in2 law or an ancestor of such father-in-law or 

3 mother-in-law, 

4 ‘‘(iii) the stepfather or stepmother or 

5 an ancestor of such stepfather or step6 mother, 

7 ‘‘(iv) any other person who, for the 

8 taxable year, has the same principal place 

9 of abode as the taxpayer and is a member 

10 of the household of the taxpayer, or 

11 ‘‘(v) a family member or other indi12 vidual who has a significant relationship 

13 with the taxpayer or the taxpayer’s spouse, 

14 and to whom such taxpayer or spouse pro15 vides a broad range of assistance with re16 spect to a chronic or other health condi17 tion, disability, or functional limitation. 

18 ‘‘(2) ELDERCARE EXPENSES.— 

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

20 expenses’ means the following amounts paid for 

21 expenses relating to the care of a qualifying in22 dividual: 

23 ‘‘(i) Medical care (as defined in sec24 tion 213(d)(1), without regard to subpara25 graph D thereof). 


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1 ‘‘(ii) Lodging away from home in ac2 cordance with section 213(d)(2). 

3 ‘‘(iii) Adult day services. 

4 ‘‘(iv) Personal care. 

5 ‘‘(v) Respite care. 

6 ‘‘(vi) Assistive technologies and de7 vices (including remote health monitoring). 

8 ‘‘(vii) Environmental modifications 

9 (including home modifications). 

10 ‘‘(viii) Counseling or training for a 

11 caregiver. 

12 ‘‘(B) DEFINITIONS.—For purposes of sub13 paragraph (A)— 

14 ‘‘(i) ADULT DAY SERVICES.—The 

15 term ‘adult day services’ means care pro16 vided for adults with functional or cog17 nitive impairments through a structured, 

18 community-based group program which 

19 provides health, social, and other related 

20 support services on a less than 24-hour 

21 basis. 

22 ‘‘(ii) PERSONAL CARE.—The term 

23 ‘personal care’ means reasonable personal 

24 care services provided to assist with daily 

25 living which do not require the skills of 


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1 qualified technical or professional per2 sonnel. 

3 ‘‘(iii) RESPITE CARE.—The term ‘res4 pite care’ means planned or emergency 

5 care intended to provide temporary relief 

6 to a caregiver. 

7 ‘‘(C) CARE CENTERS.— 

8 ‘‘(i) IN GENERAL.—Eldercare ex9 penses described in subparagraph (A) 

10 which are incurred for services provided 

11 outside the taxpayer’s household by a care 

12 center shall be taken into account only if 

13 such center complies with all applicable 

14 laws and regulations of a State or unit of 

15 local government. 

16 ‘‘(ii) CARE CENTER.—For purposes of 

17 this subparagraph, the term ‘care center’ 

18 means any facility which— 

19 ‘‘(I) provides care for more than 

20 6 individuals, and 

21 ‘‘(II) receives a fee, payment, or 

22 grant for providing services for any of 

23 the individuals (regardless of whether 

24 such facility is operated for profit). 

25 ‘‘(c) DOLLAR LIMITATION.— 


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

2 eldercare expenses incurred during any taxable year 

3 which may be taken into account under subsection 

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

5 ‘‘(2) COORDINATION WITH DEPENDENT CARE

6 ASSISTANCE EXCLUSION.—The dollar amount in 

7 paragraph (1) shall be reduced by the aggregate 

8 amount excluded from gross income under section 

9 129 for the taxable year, if any. 

10 ‘‘(d) SPECIAL RULES.—For purposes of this sec11 tion— 

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

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

14 any amount paid to an individual with respect to 

15 whom, for the taxable year, a deduction under sec16 tion 151(c) is allowable either to the taxpayer or the 

17 taxpayer’s spouse. For purposes of this paragraph, 

18 the term ‘taxable year’ means the taxable year of the 

19 taxpayer in which the service is performed. 

20 ‘‘(2) IDENTIFYING INFORMATION REQUIRED

21 WITH RESPECT TO SERVICE PROVIDER.—No credit 

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

23 paid to any person unless— 


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

2 identification number of such person are in3 cluded on the return claiming the credit, or 

4 ‘‘(B) if such person is an organization de5 scribed in section 501(c)(3) and exempt from 

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

7 of such person are included on the return 

8 claiming the credit. 

9 In the case of a failure to provide the information 

10 required under the preceding sentence, the preceding 

11 sentence shall not apply if it is shown that the tax12 payer exercised due diligence in attempting to pro13 vide the information so required. 

14 ‘‘(3) IDENTIFYING INFORMATION REQUIRED

15 WITH RESPECT TO QUALIFYING INDIVIDUALS.—No 

16 credit shall be allowed under subsection (a) with re17 spect to any qualifying individual unless the tax18 payer identification number of such individual is in19 cluded on the return claiming the credit. 

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

21 be allowed under subsection (a) for any amount with re22 spect to which a credit is allowed under section 21. 

23 ‘‘(f) REGULATIONS AND GUIDANCE.—Not later than 

24 one year after the date of the enactment of this section, 

25 the Secretary shall promulgate such regulations or guidVerDate Sep 11 2014 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689

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1 ance as are necessary to carry out this section and to pre2 vent fraud and abuse with respect to the credit under this 

3 section.’’. 

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

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

6 of the Internal Revenue Code of 1986 is amended by in7 serting after the item relating to section 25D the following 

8 new item: 

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

9 (c) CONFORMING AMENDMENTS.— 

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

11 Code of 1986 is amended— 

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

13 ‘‘section 21’’, and 

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

15 ‘‘CERTAIN DEPENDENTS’’ in the heading. 

16 (2) Section 6213(g)(2) of such Code is amend17 ed— 

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

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

20 expenses for household and dependent care 

21 services necessary for gainful employment)’’ in 

22 subparagraph (H), and 

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

24 subparagraph (L). 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

Æ 


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