I

103D CONGRESS

1ST SESSION H. R. 2368

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

expenses of providing care for certain elderly individuals, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 10, 1993

Mr. BILIRAKIS (for himself, Mr. LIPINSKI, Mr. SMITH of New Jersey, Mr.

DOOLITTLE, Mr. MACHTLEY, Mrs. THURMAN, Mr. GREENWOOD, and

Mrs. MEYERS of Kansas) 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 deduction for expenses of providing care for certain

elderly individuals, 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 ‘‘Older Americans Eco5 nomic Security Act of 1993’’.
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1 SEC. 2. TAX DEDUCTION FOR CARE OF CERTAIN ELDERLY

2 INDIVIDUALS.

3 (a) IN GENERAL.—Part VII of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 (relating to

5 additional itemized deductions for individuals) is amended

6 by redesignating section 220 as section 221 and by insert7 ing after section 219 the following new section:

8 ‘‘SEC. 220. EXPENSES FOR CARE OF CERTAIN ELDERLY IN9 DIVIDUALS.

10 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an

11 individual, there shall be allowed as a deduction an

12 amount equal to the amount by which the qualified elderly

13 care expenses paid by the taxpayer during the taxable year

14 exceed 5 percent of the adjusted gross income of the tax15 payer.

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

17 ‘‘(1) QUALIFIED ELDERLY CARE EXPENSES.—

18 The term ‘qualified elderly care expenses’ means

19 payments by the taxpayer for in-home custodial

20 care—

21 ‘‘(A) provided to any qualifying elderly in22 dividual, and

23 ‘‘(B) not compensated for by insurance or

24 otherwise.
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1 ‘‘(2) QUALIFYING ELDERLY INDIVIDUAL.—The

2 term ‘qualifying elderly individual’ means any indi3 vidual—

4 ‘‘(A) who has attained age 65 before the

5 close of the taxable year, and

6 ‘‘(B) who is—

7 ‘‘(i) a parent or grandparent of the

8 taxpayer during the taxable year, or

9 ‘‘(ii) a dependent (as defined in sec10 tion 152) of the taxpayer during the tax11 able year.

12 ‘‘(3) CUSTODIAL CARE.—The term ‘custodial

13 care’ means services which constitute personal care

14 and which do not entail or require the continuing at15 tention of trained medical or paramedical personnel,

16 such as help in walking and getting in and out of

17 bed, assistance in bathing, dressing, feeding, and

18 using a toilet, preparation of special diets, and su19 pervision over the taking of medication which would

20 otherwise usually be self-administered.

21 ‘‘(c) SPECIAL RULES.—

22 ‘‘(1) DETERMINATION OF PARENTS AND

23 GRANDPARENTS.—Paragraph (2) of section 152(b)

24 (relating to rules relating to general definition of de25 pendent) shall apply to the determination of whether
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1 any of the relationships specified in clause (i) of sub2 section (b)(2)(B) exists.

3 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc4 tion or credit shall be allowed under any other provi5 sion of this chapter with respect to any amount for

6 which a deduction is allowed under subsection (a).’’

7 (b) DEDUCTION NOT SUBJECT TO FLOOR ON MIS8 CELLANEOUS ITEMIZED DEDUCTIONS.—Subsection (b) of

9 section 67 of such Code is amended by striking ‘‘and’’ at

10 the end of paragraph (12), by striking the period at the

11 end of paragraph (13) and inserting ‘‘, and’’, and by add12 ing at the end thereof the following new paragraph:

13 ‘‘(14) the deduction under section 220 (relating

14 to expenses for care of certain elderly individuals).’’

15 (c) CLERICAL AMENDMENT.—The table of sections

16 for part VII of subchapter B of chapter 1 of such Code

17 is amended by striking the last item and inserting the fol18 lowing new items:

‘‘Sec. 220. Expenses for care of certain elderly individuals.

‘‘Sec. 221. Cross reference.’’

19 SEC. 3. INCLUSION OF CERTAIN GOODS AND SERVICES DO20 NATED BY PHYSICIANS OR REGISTERED PRO21 FESSIONAL NURSES TO ELDERLY INDIVID22 UALS AS CHARITABLE DEDUCTIONS.

23 (a) IN GENERAL.—Subsection (c) of section 170 of

24 the Internal Revenue Code of 1986 (relating to charitable
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1 contribution defined) is amended by inserting after para2 graph (5) the following new paragraph:

3 ‘‘(6) An individual who has attained age 65 and

4 who is not a member of the donor’s family if the

5 contribution or gift is the rendering of medical serv6 ices or the provision of medical goods by a physician

7 (as defined in section 213(d)(4)) or by a registered

8 professional nurse.’’

9 (b) VALUATION OF GOODS AND SERVICES DO10 NATED.—Section 170 of such Code (relating to charitable,

11 etc., contributions and gifts) is amended by redesignating

12 subsection (m) as subsection (n) and by inserting after

13 subsection (l) the following new subsection:

14 ‘‘(m) VALUATION OF CONTRIBUTIONS AND GIFTS

15 DESCRIBED IN SUBSECTION (c)(6).—The value of con16 tributions and gifts described in subsection (c)(6) shall be

17 determined as if provided to an individual under the insur18 ance program established by part B of title XVIII of the

19 Social Security Act (42 U.S.C. ch. 7, subch. XVIII, part

20 B), in accordance with the provisions of subsections (a)

21 and (c) of section 1833 of such Act (42 U.S.C. 1395l).’’
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1 SEC. 4. TAX-FREE WITHDRAWALS FROM INDIVIDUAL RE2 TIREMENT ACCOUNTS TO PAY LONG-TERM

3 CARE EXPENSES OR TO PURCHASE LONG4 TERM CARE INSURANCE.

5 (a) IN GENERAL.—Subsection (d) of section 408 of

6 the Internal Revenue Code of 1986 (relating to tax treat7 ment of distributions from individual retirement accounts)

8 is amended by adding at the end the following new para9 graph:

10 ‘‘(8) DISTRIBUTIONS TO PAY LONG-TERM CARE

11 EXPENSES OR PURCHASE LONG-TERM CARE INSUR12 ANCE.—

13 ‘‘(A) IN GENERAL.—Paragraph (1) shall

14 not apply to any amount paid or distributed out

15 of an individual retirement account or individ16 ual retirement annuity to the individual for

17 whose benefit the account or annuity is main18 tained if the entire amount received (including

19 money and any other property) is used, within

20 30 days after the individual receives the pay21 ment or distribution—

22 ‘‘(i) to pay long-term care expenses of

23 the individual, or

24 ‘‘(ii) to purchase insurance covering

25 such expenses.
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1 ‘‘(B) LONG-TERM CARE EXPENSES DE2 FINED.—For purposes of subparagraph (A), the

3 term ‘long-term care expenses’ means, with re4 spect to an individual, expenses incurred by the

5 individual for—

6 ‘‘(i) custodial or health care provided

7 to the individual in a nursing home, and

8 ‘‘(ii) any goods or services provided to

9 the individual outside a nursing home in

10 connection with the provision of custodial

11 or health care to the individual.’’

12 SEC. 5. EFFECTIVE DATE.

13 The amendments made by this Act shall apply to tax14 able years beginning after December 31, 1993.

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