Americans Giving Care to Elders (AGE) Act of 2021

To amend the Internal Revenue Code of 1986 to provide an income tax credit for eldercare expenses. 1. Short title This Act may be cited as the Americans Giving Care to Elders (AGE) Act of 2021 2. Credit for eldercare expenses (a) In general Subpart A of part IV of subchapter A of chapter 1 25E. Expenses for eldercare (a) Allowance of credit (1) In general In the case of an individual for which there are 1 or more qualifying individuals with respect to such individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the eldercare expenses paid by such individual during the taxable year. (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage (b) Definitions For purposes of this section— (1) Qualifying individual The term qualifying individual (A) who has attained age 60, (B) who requires assistance with activities of daily living, and (C) who is, with respect to the taxpayer or the taxpayer's spouse— (i) the father or mother or an ancestor of such father or mother, (ii) the father-in-law or mother-in-law or an ancestor of such father-in-law or mother-in-law, (iii) the stepfather or stepmother or an ancestor of such stepfather or stepmother, (iv) any other person who, for the taxable year, has the same principal place of abode as the taxpayer and is a member of the household of the taxpayer, or (v) a family member or other individual who has a significant relationship with the taxpayer or the taxpayer’s spouse, and to whom such taxpayer or spouse provides a broad range of assistance with respect to a chronic or other health condition, disability, or functional limitation. (2) Eldercare expenses (A) In general The term eldercare expenses (i) Medical care (as defined in section 213(d)(1), without regard to subparagraph D thereof). (ii) Lodging away from home in accordance with section 213(d)(2). (iii) Adult day services. (iv) Personal care. (v) Respite care. (vi) Assistive technologies and devices (including remote health monitoring). (vii) Environmental modifications (including home modifications). (viii) Counseling or training for a caregiver. (B) Definitions For purposes of subparagraph (A)— (i) Adult day services The term adult day services (ii) Personal care The term personal care (iii) Respite care The term respite care (C) Care centers (i) In general Eldercare expenses described in subparagraph (A) which are incurred for services provided outside the taxpayer's household by a care center shall be taken into account only if such center complies with all applicable laws and regulations of a State or unit of local government. (ii) Care center For purposes of this subparagraph, the term care center (I) provides care for more than 6 individuals, and (II) receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit). (c) Dollar limitation (1) In general The amount of the eldercare expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed $6,000. (2) Coordination with dependent care assistance exclusion The dollar amount in paragraph (1) shall be reduced by the aggregate amount excluded from gross income under section 129 for the taxable year, if any. (d) Special rules For purposes of this section— (1) Payments to related individuals No credit shall be allowed under subsection (a) for any amount paid to an individual with respect to whom, for the taxable year, a deduction under section 151(c) is allowable either to the taxpayer or the taxpayer's spouse. For purposes of this paragraph, the term taxable year (2) Identifying information required with respect to service provider No credit shall be allowed under subsection (a) for any amount paid to any person unless— (A) the name, address, and taxpayer identification number of such person are included on the return claiming the credit, or (B) if such person is an organization described in section 501(c)(3) and exempt from tax under section 501(a), the name and address of such person are included on the return claiming the credit. In the case of a failure to provide the information required under the preceding sentence, the preceding sentence shall not apply if it is shown that the taxpayer exercised due diligence in attempting to provide the information so required. (3) Identifying information required with respect to qualifying individuals No credit shall be allowed under subsection (a) with respect to any qualifying individual unless the taxpayer identification number of such individual is included on the return claiming the credit. (e) Denial of double benefit No credit shall be allowed under subsection (a) for any amount with respect to which a credit is allowed under section 21. (f) Regulations and guidance Not later than one year after the date of the enactment of this section, the Secretary shall promulgate such regulations or guidance as are necessary to carry out this section and to prevent fraud and abuse with respect to the credit under this section. . (b) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 Sec. 25E. Expenses for eldercare. (c) Conforming amendments (1) Section 213(e) (A) by inserting or section 25E section 21 (B) by inserting and elders certain dependents (2) Section 6213(g)(2) of such Code is amended— (A) by inserting , section 25E (relating to expenses for care of elders), (relating to expenses for household and dependent care services necessary for gainful employment) (B) by inserting , 25E 24 (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Americans Giving Care to Elders (AGE) Act of 2021 This bill allows a tax credit for a portion of a taxpayer's expenses for eldercare. The credit applies to expenses to care for certain relatives or members of the taxpayer's household who have attained the age of 60 and require assistance with activities of daily living. Eldercare expense include amounts paid for: medical care, lodging away from home, adult day services, personal care, respite care, assistive technologies and devices (including remote health monitoring), environmental modifications (including home modifications), and counseling or training for a caregiver. The amount of eldercare expenses incurred during any year that may be taken into account for the credit may not exceed $6,000.