I 
114TH CONGRESS 
2D SESSION 
H. R. 4708 
To amend the Internal Revenue Code of 1986 to provide a nonrefundable 
credit for working family caregivers. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2016 
Mr. REED (for himself and Ms. LINDA T. SA´NCHEZ of California) 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 nonrefundable credit for working family caregivers. 
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 ‘‘Credit for Caring Act 
of 2016’’. 
SEC. 2. CREDIT FOR WORKING FAMILY CAREGIVERS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 25D the fol-
lowing new section: 
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‘‘SEC. 25E. WORKING FAMILY CAREGIVERS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible caregiver, there shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an 
amount equal to 30 percent of the qualified expenses paid 
by the taxpayer during the taxable year to the extent that 
such expenses exceed $2,000. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The amount allowed as a 
credit under subsection (a) for the taxable year shall 
not exceed $3,000. 
‘‘(2) ADJUSTMENT
FOR
INFLATION.—In the 
case of any taxable year beginning after 2016, the 
dollar amount contained in paragraph (1) shall be 
increased by an amount equal to the product of— 
‘‘(A) such dollar amount, and 
‘‘(B) the medical care cost adjustment de-
termined under section 213(d)(10)(B)(ii) for 
the calendar year in which the taxable year be-
gins, determined by substituting ‘2015’ for 
‘1996’ in subclause (II) thereof. 
If any increase determined under the preceding sen-
tence is not a multiple of $50, such increase shall 
be rounded to the next lowest multiple of $50. 
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‘‘(c) ELIGIBLE CAREGIVER.—For purposes of this 
section, the term ‘eligible caregiver’ means an individual 
who— 
‘‘(1) during the taxable year pays or incurs eli-
gible expenses in connection with providing care for 
a qualified care recipient, and 
‘‘(2) has earned income (as defined in section 
32(c)(2)) for the taxable year in excess of $7,500. 
‘‘(d) QUALIFIED CARE RECIPIENT.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified care re-
cipient’ means, with respect to any taxable year, any 
individual who— 
‘‘(A) is the spouse of the eligible caregiver, 
or any other person who bears a relationship to 
the eligible caregiver described in any of sub-
paragraphs 
(A) 
through 
(H) 
of 
section 
152(d)(2), 
‘‘(B) has been certified, before the due 
date for filing the return of tax for the taxable 
year, by a licensed health care practitioner (as 
defined in section 7702B(c)(4)) as being an in-
dividual with long-term care needs described in 
paragraph (3) for a period— 
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‘‘(i) which is at least 180 consecutive 
days, and 
‘‘(ii) a portion of which occurs within 
the taxable year. 
‘‘(2) PERIOD
FOR
MAKING
CERTIFICATION.— 
Notwithstanding paragraph (1)(B), a certification 
shall not be treated as valid unless it is made within 
the 391⁄2-month period ending on such due date (or 
such other period as the Secretary prescribes). 
‘‘(3) INDIVIDUALS
WITH
LONG-TERM
CARE 
NEEDS.—An individual is described in this para-
graph if the individual meets any of the following re-
quirements: 
‘‘(A) The individual is at least 6 years of 
age and— 
‘‘(i) is unable to perform (without 
substantial assistance from another indi-
vidual) at least 2 activities of daily living 
(as defined in section 7702B(c)(2)(B)) due 
to a loss of functional capacity, or 
‘‘(ii) requires substantial supervision 
to protect such individual from threats to 
health and safety due to severe cognitive 
impairment and is unable to perform, with-
out reminding or cueing assistance, at 
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least 1 activity of daily living (as so de-
fined) or to the extent provided in regula-
tions prescribed by the Secretary (in con-
sultation with the Secretary of Health and 
Human Services), is unable to engage in 
age appropriate activities. 
‘‘(B) The individual is at least 2 years of 
age but not 6 years of age and is unable due 
to a loss of functional capacity to perform 
(without substantial assistance from another in-
dividual) at least 2 of the following activities: 
eating, transferring, or mobility. 
‘‘(C) The individual is under 2 years of age 
and requires specific durable medical equipment 
by reason of a severe health condition or re-
quires a skilled practitioner trained to address 
the individual’s condition to be available if the 
individual’s parents or guardians are absent. 
‘‘(e) QUALIFIED EXPENSES.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘qualified ex-
penses’ means expenditures for goods, services, and 
supports that assist with activities of daily living (as 
defined in section 7702B(c)(2)(B)) and instrumental 
activities of daily living (as defined in section 
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1915(k)(6)(F) of the Social Security Act (42 U.S.C. 
1396n(k)(6)(F)) provided to a qualified care recipi-
ent described and are not incurred by individuals 
who do not need such assistance. 
‘‘(2) ADJUSTMENT
FOR
OTHER
TAX
BENE-
FITS.—The amount of qualified expenses otherwise 
taken into account under paragraph (1) with respect 
to an individual shall be reduced by the sum of any 
amounts paid for the benefit of such individual for 
the taxable year which are— 
‘‘(A) taken into account under section 21 
or 213, or 
‘‘(B) excluded from gross income under 
section 129, 223(f), or 529A(c)(1)(B). 
‘‘(3) GOODS, SERVICES, AND SUPPORTS.—For 
purposes of paragraph (1), goods, services and sup-
ports (as defined by the Secretary) include— 
‘‘(A) human assistance, supervision, cueing 
and standby assistance, 
‘‘(B) assistive technologies and devices (in-
cluding remote health monitoring), 
‘‘(C) environmental modifications (includ-
ing home modifications), 
‘‘(D) health maintenance tasks (such as 
medication management), 
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‘‘(E) information, 
‘‘(F) transportation of the qualified care 
recipient, 
‘‘(G) non-health items (such as inconti-
nence supplies), 
‘‘(H) travel costs of the eligible caregiver 
related to caring for a qualified care recipient, 
‘‘(I) lost wages for unpaid time off due to 
caring for a qualified care recipient as verified 
by an employer, 
‘‘(J) coordination of and services for peo-
ple who live in their own home, a residential 
setting, or a nursing facility, as well as the cost 
of care in these or other locations, and 
‘‘(K) supports provided to family members 
and other unpaid caregivers. 
‘‘(4) HUMAN ASSISTANCE.—The term ‘human 
assistance’ includes the costs of a direct care worker. 
‘‘(5) DOCUMENTATION.—An expense shall not 
be taken into account under this section unless the 
eligible caregiver substantiates such expense under 
such regulations or guidance as the Secretary shall 
provide. 
‘‘(6) MILEAGE RATE.—For purposes of this sec-
tion, the mileage rate for the use of a passenger 
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automobile shall be the standard mileage rate used 
to calculate the deductible costs of operating an 
automobile for medical purposes. Such rate may be 
used in lieu of actual automobile-related travel ex-
penses. 
‘‘(7) COORDINATION WITH ABLE ACCOUNTS.— 
Qualified expenses for a taxable year shall not in-
clude contributions to an ABLE account (as defined 
in section 529A). 
‘‘(f) PHASE-OUT BASED ON ADJUSTED GROSS IN-
COME.—For purposes of this section— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowable under subsection (a) shall be reduced (but 
not below zero) by $100 for each $1,000 (or fraction 
thereof) by which the taxpayer’s modified adjusted 
gross income exceeds the threshold amount. 
‘‘(2) MODIFIED
ADJUSTED
GROSS
INCOME.— 
The term ‘modified adjusted gross income’ means 
adjusted gross income increased by any amount ex-
cluded from gross income under section 911, 931, or 
933. 
‘‘(3) THRESHOLD AMOUNT.—The term ‘thresh-
old amount’ means— 
‘‘(A) $150,000 in the case of a joint re-
turn, and 
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‘‘(B) $75,000 in any other case. 
‘‘(4) INDEXING.—In the case of any taxable 
year beginning in a calendar year after 2016, each 
dollar amount contained in paragraph (3) shall be 
increased by an amount equal to the product of— 
‘‘(A) such dollar amount, and 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘‘calendar year 2015’’ for 
‘‘calendar year 1992’’ in subparagraph (B) 
thereof. 
‘‘(5) ROUNDING RULE.—If any increase deter-
mined under paragraph (4) is not a multiple of $50, 
such increase shall be rounded to the next lowest 
multiple of $50. 
‘‘(g) IDENTIFICATION
OF
ELIGIBLE
CAREGIVER 
WITH CARE RECIPIENT (QUALIFIED CARE RECIPIENT) 
IDENTIFICATION REQUIREMENT.—No credit shall be al-
lowed under this section to a taxpayer with respect to any 
qualified care recipient unless the taxpayer includes the 
name and taxpayer identification number of such indi-
vidual, and the identification number of the licensed health 
care practitioner certifying such individual, on the return 
of tax for the taxable year.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 25D the following new item: 
‘‘Sec. 25E. Working family caregivers.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
Æ 
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