(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
SEC. 404. TAX CREDIT FOR TAXPAYERS PROVIDING CARE 
FOR DEPENDENT PARENTS IN THEIR HOUSE-
HOLDS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25B the following new 
section: 
‘‘SEC. 25C. CREDIT FOR TAXPAYERS PROVIDING CARE FOR 
DEPENDENT 
PARENTS 
IN 
THEIR 
HOUSE-
HOLDS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who maintains a household which includes as a 
member one or more qualified persons, there shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the qualified care 
expenses. 
‘‘(b) LIMITATION.—The amount of the credit allowed 
by subsection (a) shall not exceed $1,000 for each quali-
fied person. 
‘‘(c) QUALIFIED PERSON.—For purposes of this sec-
tion, the term ‘qualified person’ means any individual—
100
‘‘(1) who is a father or mother of the taxpayer, 
his spouse, or his former spouse or who is an ances-
tor of such a father or mother, 
‘‘(2) for whom the taxpayer is allowed an ex-
emption amount under section 151, and 
‘‘(3) whose name and TIN are included on the 
taxpayer’s return for the taxable year. 
For purposes of paragraph (1), a stepfather or stepmother 
shall be treated as a father or mother. 
‘‘(d) QUALIFIED CARE EXPENSES.—For purposes of 
this section, the term ‘qualified care expenses’ means the 
amount paid or incurred by the taxpayer to provide care 
for a qualified person in the principal residence of the tax-
payer. No amount shall be taken into account under this 
section with respect to a qualified person for any expense 
incurred for a period during which such person is receiving 
qualified long-term care services (as defined in section 
7702B(c)(1)) outside of such residence. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall 
not be allowed under this section for any expense for which 
a credit or deduction is claimed under any other provision 
of this title.
‘‘(f) SPECIAL RULES.—For purposes of this section, 
rules similar to the rules of paragraphs (1), (2), (3), and 
(4) of section 21(e) shall apply.’’
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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 25B the following new item:
‘‘Sec. 25C. Credit for taxpayers providing care for dependent par-
ents in their households.’’
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
SEC. 405. NONREFUNDABLE TAX CREDIT FOR EXPENSES OF 
SENIORS FOR MAINTAINING A PRINCIPAL 
RESIDENCE. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25C the following new 
section: 
‘‘SEC. 25D. EXPENSES OF SENIORS FOR MAINTAINING A 
PRINCIPAL RESIDENCE. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, at the election of the taxpayer there shall 
be allowed as a credit against the tax imposed by this sub-
title for the taxable year an amount equal to qualified resi-
dence expenses.
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‘‘(b) DOLLAR LIMITATION.—The amount allowed as 
a credit by subsection (a) for the taxable year shall not 
exceed $1,000. 
‘‘(c) QUALIFIED RESIDENCE EXPENSES.—For pur-
poses of this section, the term ‘qualified residence ex-
penses’ means the amount paid or incurred by the tax-
payer for the maintenance of the principal residence of 
the taxpayer. No amount shall be taken into account 
under this section for any expense incurred for a period 
during which the taxpayer is receiving qualified long-term 
care services (as defined in section 7702B(c)(1)) outside 
of such residence. 
‘‘(d) ELIGIBLE INDIVIDUAL.—The term ‘eligible indi-
vidual’ means an individual who has attained age 65 as 
of the end of the taxable year. 
‘‘(e) SPECIAL RULES.—
‘‘(1) DOUBLE BENEFIT.—A credit shall not be 
allowed under this section for any expense for which 
a credit or deduction is claimed under any other pro-
vision of this title. 
‘‘(2) ELECTION.—A taxpayer who claims the 
credit under section 25C for a taxable year shall not 
be eligible to make an election under this section for 
such year.’’.
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(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the item 
relating to section 25C the following new item:
‘‘Sec. 25D. Expenses of seniors for maintaining a principal resi-
dence.’’
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004.
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