I 
108TH CONGRESS 
1ST SESSION H. R. 2697
To amend the Internal Revenue Code of 1986 to provide an additional 
personal exemption for certain dependents with long-term care needs. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 10, 2003
Mr. BARRETT of South Carolina 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 additional personal exemption for certain dependents 
with long-term care needs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Caring Family Act 
of 2003’’.
SEC. 2. ADDITIONAL PERSONAL EXEMPTION FOR DEPEND-
ENTS WITH LONG-TERM CARE NEEDS IN TAX-
PAYER’S HOME. 
(a) IN GENERAL.—Section 151 of the Internal Rev-
enue Code of 1986 (relating to allowance of deductions
for personal exemptions) is amended by redesignating sub-
sections (d) and (e) as subsections (e) and (f), respectively, 
and by inserting after subsection (c) the following new 
subsection: 
‘‘(d) ADDITIONAL EXEMPTION
FOR DEPENDENTS 
WITH
LONG-TERM
CARE
NEEDS
IN
TAXPAYER’S 
HOME.—
‘‘(1) IN GENERAL.—An exemption of the appli-
cable amount for each qualified family member of 
the taxpayer. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1), the applicable amount is the amount 
determined in accordance with the following table:
‘‘For taxable years beginning 
The applicable 
in calendar year— 
applicable amount is—
2003 and 2004 .........................................................................
$500
2005 and 2006 .........................................................................
1,000
2007 and 2008 .........................................................................
1,500
2009 and 2010 .........................................................................
2,000
2011 and 2012 .........................................................................
2,500
2013 and thereafter .................................................................
0.
‘‘(3) QUALIFIED FAMILY MEMBER.—For pur-
poses of this subsection, the term ‘qualified family 
member’ means, with respect to any taxable year, 
any individual— 
‘‘(A) who is—
‘‘(i) the spouse of the taxpayer, or
‘‘(ii) a dependent of the taxpayer with 
respect to whom the taxpayer is entitled to 
an exemption under subsection (c), 
‘‘(B) who has attained age 60 before the 
close of the taxable year, 
‘‘(C) who is an individual with long-term 
care needs, and 
‘‘(D) who, for more than one-half of the 
taxable year, has as such individual’s principal 
place of abode the home of the taxpayer and is 
a member of the taxpayer’s household. 
‘‘(4) INDIVIDUALS
WITH
LONG-TERM
CARE 
NEEDS.—For purposes of this subsection, the term 
‘individual with long-term care needs’ means, with 
respect to any taxable year, an individual who has 
been certified during such year by a physician (as 
defined in section 1861(r)(1) of the Social Security 
Act) as being, for a period of at least 180 consecu-
tive days which includes the date of the certifi-
cation— 
‘‘(A) an individual who is unable to per-
form (without substantial assistance from an-
other individual) at least 2 activities of daily liv-
ing (as defined in section 7702B(c)(2)(B)) due 
to a loss of functional capacity, or
‘‘(B) an individual who requires substan-
tial supervision to protect such individual from 
threats to health and safety due to severe cog-
nitive impairment and is unable to perform, 
without reminding or cuing assistance, at least 
1 activity of daily living (as so defined) or to 
the extent provided in regulations prescribed by 
the Secretary (in consultation with the Sec-
retary of Health and Human Services), is un-
able to engage in age appropriate activities. 
‘‘(5) IDENTIFICATION REQUIREMENT.—
‘‘(A) IN GENERAL.—No exemption shall be 
allowed under this subsection to a taxpayer 
with respect to any qualified family member un-
less the taxpayer includes on the return of tax 
for the taxable year—
‘‘(i) the name and TIN of such mem-
ber, and 
‘‘(ii) the name and TIN of the physi-
cian certifying such member. 
‘‘(B) EXCEPTION FOR DUE DILIGENCE.—
In the case of a failure to provide the informa-
tion required under subparagraph (A)(ii), such 
subparagraph shall not apply if it is shown that
the taxpayer exercised due diligence in attempt-
ing to provide the information so required. 
‘‘(6) SPECIAL
RULES.—Rules similar to the 
rules of paragraphs (2), (3), and (4) of section 21(e) 
shall apply for purposes of this subsection.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 1(f)(6)(A) of such Code is amended 
by striking ‘‘151(d)(4)’’ and inserting ‘‘151(e)(4)’’. 
(2) Section 1(f)(6)(B) of such Code, as amend-
ed by the Economic Growth and Tax Relief Rec-
onciliation Act of 2001, is amended by striking 
‘‘151(d)(3)(A)’’ and inserting ‘‘151(e)(3)(A)’’. 
(3) Section 1(f)(6)(B) of such Code, as in effect 
on the day before the date of the enactment of the 
Economic Growth and Tax Relief Reconciliation Act 
of 2001, is amended by striking ‘‘151(d)(4)(A)’’ and 
inserting ‘‘151(e)(4)(A)’’. 
(4) Section 3402(f)(1)(A) of such Code is 
amended by striking ‘‘151(d)(2)’’ and inserting 
‘‘151(e)(2)’’. 
(5) Section 3402(r)(2)(B) of such Code is 
amended 
by 
striking 
‘‘151(d)’’ 
and 
inserting 
‘‘151(e)’’. 
(6) Section 6012(a)(1)(D)(ii) of such Code is 
amended—
(A) by striking ‘‘151(d)’’ and inserting 
‘‘151(e)’’, and 
(B) by striking ‘‘151(d)(2)’’ and inserting 
‘‘151(e)(2)’’. 
(7) Section 6013(b)(3)(A) of such Code is 
amended 
by 
striking 
‘‘151(d)’’ 
and 
inserting 
‘‘151(e)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002.
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