I 
117TH CONGRESS 
1ST SESSION H. R. 3819 
To amend the Internal Revenue Code of 1986 to provide a credit to individ-
uals for legal expenses paid with respect to establishing guardianship 
of a family member with disabilities. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 11, 2021 
Mr. DEUTCH 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 credit to individuals for legal expenses paid with re-
spect to establishing guardianship of a family member 
with disabilities. 
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 ‘‘Special Needs Tax 
Credit Act’’. 
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SEC. 2. CREDIT FOR LEGAL EXPENSES PAID WITH RESPECT 
TO ESTABLISHING GUARDIANSHIP OF A FAM-
ILY MEMBER WITH DISABILITIES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by insert-
ing after section 36B the following new section: 
‘‘SEC. 36C. CREDIT FOR LEGAL EXPENSES PAID WITH RE-
SPECT TO ESTABLISHING GUARDIANSHIP OF 
A FAMILY MEMBER WITH DISABILITIES. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this subtitle an amount equal to the qualified legal 
guardianship expenses paid or incurred by the taxpayer 
during the taxable year. 
‘‘(b) DOLLAR
LIMITATION.—The credit allowed 
under subsection (a) to any taxpayer with respect to any 
family member with disabilities for any taxable year shall 
not exceed the excess of— 
‘‘(1) $5,000, over 
‘‘(2) the aggregate amount allowed as credit 
under subsection (a) to such taxpayer with respect 
to such family member with disabilities for all prior 
taxable years. 
‘‘(c) PHASEOUT BASED ON ADJUSTED GROSS IN-
COME.—The dollar limitation applicable under subsection 
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(b) shall be reduced by the amount which bears the same 
ratio to such dollar limitation (determined without regard 
to this subsection) as— 
‘‘(1) the excess of— 
‘‘(A) the taxpayer’s adjusted gross income, 
over 
‘‘(B) $35,000 (twice such amount in the 
case of a joint return), bears to 
‘‘(2) $10,000 (twice such amount in the case of 
a joint return). 
‘‘(d) 
QUALIFIED
LEGAL
GUARDIANSHIP
EX-
PENSES.—For purposes of this section, the term ‘qualified 
legal guardianship expenses’ means amounts paid or in-
curred by an individual as legal expenses in establishing 
such individual as the legal guardian of a family member 
with disabilities. 
‘‘(e) FAMILY MEMBER WITH DISABILITIES.—For 
purposes of this section, the term ‘family member with dis-
abilities’ means, with respect to any taxpayer, any indi-
vidual who— 
‘‘(1) bears a relationship to the taxpayer de-
scribed in section 152(d)(2) (other than subpara-
graph (H) thereof), and 
‘‘(2) is disabled (within the meaning of section 
1614(a)(3) of the Social Security Act).’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ after 
‘‘36B,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36B the following new item: 
‘‘Sec. 36C. Credit for legal expenses paid with respect to establishing guardian-
ship of a family member with disabilities.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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