‘‘(ii) ROUNDING.—If any increase
under clause (i) is not a multiple of 5
cents, such increase shall be rounded to
the next lowest multiple of 5 cents.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to calendar years after 1999.
TITLE 
VI—INCENTIVES 
FOR
HEALTH 
CARE 
AND 
LONG-
TERM CARE
SEC. 601. DEDUCTION FOR 100 PERCENT OF HEALTH IN-
SURANCE COSTS OF SELF-EMPLOYED INDI-
VIDUALS.
(a) IN GENERAL.—Paragraph (1) of section 162(l)
is amended to read as follows:
‘‘(1) ALLOWANCE OF DEDUCTION.—In the case
of an individual who is an employee within the
meaning of section 401(c)(1), there shall be allowed
as a deduction under this section an amount equal
to 100 percent of the amount paid during the tax-
able year for insurance which constitutes medical
care for the taxpayer, his spouse, and dependents.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 602. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE
NEEDS.
(a) ALLOWANCE OF CREDIT.—
(1) IN GENERAL.—Section 24(a) (relating to al-
lowance of child tax credit) is amended to read as
follows:
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the sum of—
‘‘(1) $500 multiplied by the number of quali-
fying children of the taxpayer, plus
‘‘(2) $1,000 multiplied by the number of appli-
cable individuals with respect to whom the taxpayer
is an eligible caregiver for the taxable year.
In any case in which the applicable individual and the eli-
gible caregiver are the same individual, the credit allowed
by paragraph (2) with respect to such individual shall not
exceed the aggregate amount paid by the taxpayer during
the taxable year (not compensated for by insurance or oth-
erwise) for qualified long-term care services (as defined
in section 7702B(c)) for such individual.’’
(2) ADDITIONAL CREDIT FOR TAXPAYER WITH
3 OR MORE SEPARATE CREDIT AMOUNTS.—So much
of section 24(d) as precedes paragraph (1)(A) there-
of is amended to read as follows:
‘‘(d) ADDITIONAL CREDIT FOR TAXPAYERS WITH 3
OR MORE SEPARATE CREDIT AMOUNTS.—
‘‘(1) IN GENERAL.—If the sum of the number
of qualifying children of the taxpayer and the num-
ber of applicable individuals with respect to which
the taxpayer is an eligible caregiver is 3 or more for
any taxable year, the aggregate credits allowed
under subpart C shall be increased by the lesser
of—’’.
(3) CONFORMING AMENDMENTS.—
(A) The heading for section 32(n) is
amended by striking ‘‘CHILD’’ and inserting
‘‘FAMILY CARE’’.
(B) The heading for section 24 is amended
to read as follows:
‘‘SEC. 24. FAMILY CARE CREDIT.’’
(C) The table of sections for subpart A of
part IV of subchapter A of chapter 1 is amend-
ed by striking the item relating to section 24
and inserting the following new item:
‘‘Sec. 24. Family care credit.’’.
(b) DEFINITIONS.—Section 24(c) (defining qualifying
child) is amended to read as follows:
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFYING CHILD.—
‘‘(A) IN GENERAL.—The term ‘qualifying
child’ means any individual if—
‘‘(i) the taxpayer is allowed a deduc-
tion under section 151 with respect to such
individual for the taxable year,
‘‘(ii) such individual has not attained
the age of 17 as of the close of the cal-
endar year in which the taxable year of the
taxpayer begins, and
‘‘(iii) such individual bears a relation-
ship to the taxpayer described in section
32(c)(3)(B).
‘‘(B) EXCEPTION FOR CERTAIN NONCITI-
ZENS.—The term ‘qualifying child’ shall not in-
clude any individual who would not be a de-
pendent if the first sentence of section
152(b)(3) were applied without regard to all
that follows ‘resident of the United States’.
‘‘(2) APPLICABLE INDIVIDUAL.—
‘‘(A) IN GENERAL.—The term ‘applicable
individual’ means, with respect to any taxable
year, any individual who has been certified, be-
fore the due date for filing the return of tax for
the taxable year (without extensions), by a phy-
sician (as defined in section 1861(r)(1) of the
Social Security Act) as being an individual with
long-term care needs described in subparagraph
(B) for a period—
‘‘(i) which is at least 180 consecutive
days, and
‘‘(ii) a portion of which occurs within
the taxable year.
Such term shall not include any individual oth-
erwise meeting the requirements of the pre-
ceding sentence unless within the 12 month pe-
riod ending on such due date (or such other pe-
riod as the Secretary prescribes) a physician (as
so defined) has certified that such individual
meets such requirements.
‘‘(B) INDIVIDUALS WITH LONG-TERM CARE
NEEDS.—An individual is described in this sub-
paragraph if the individual meets any of the fol-
lowing requirements:
‘‘(i) The individual is at least 6 years
of age and—
‘‘(I) is unable to perform (with-
out substantial assistance from an-
other individual) at least 3 activities
of daily living (as defined in section
7702B(c)(2)(B)) due to a loss of
functional capacity, or
‘‘(II) requires substantial super-
vision to protect such individual from
threats to health and safety due to se-
vere cognitive impairment and is un-
able to perform at least 1 activity of
daily living (as so defined).
‘‘(ii) The individual is at least 2 but
not 6 years of age and is unable due to a
loss of functional capacity to perform
(without substantial assistance from an-
other individual) at least 2 of the following
activities: eating, transferring, or mobility.
‘‘(iii) The individual is under 2 years
of age and requires specific durable med-
ical equipment by reason of a severe health
condition or requires a skilled practitioner
trained to address the individual’s condi-
tion to be available if the individual’s par-
ents or guardians are absent.
‘‘(3) ELIGIBLE CAREGIVER.—
‘‘(A) IN GENERAL.—A taxpayer shall be
treated as an eligible caregiver for any taxable
year with respect to the following individuals:
‘‘(i) The taxpayer.
‘‘(ii) The taxpayer’s spouse.
‘‘(iii) An individual with respect to
whom the taxpayer is allowed a deduction
under section 151 for the taxable year.
‘‘(iv) An individual who would be de-
scribed in clause (iii) for the taxable year
if section 151(c)(1)(A) were applied by
substituting for the exemption amount an
amount equal to the sum of the exemption
amount, the standard deduction under sec-
tion 63(c)(2)(C), and any additional stand-
ard deduction under section 63(c)(3) which
would be applicable to the individual if
clause (iii) applied.
‘‘(v) An individual who would be de-
scribed in clause (iii) for the taxable year
if—
‘‘(I) the requirements of clause
(iv) are met with respect to the indi-
vidual, and
‘‘(II) the requirements of sub-
paragraph (B) are met with respect to
the individual in lieu of the support
test of section 152(a).
‘‘(B) RESIDENCY
TEST.—The require-
ments of this subparagraph are met if an indi-
vidual has as his principal place of abode the
home of the taxpayer and—
‘‘(i) in the case of an individual who
is an ancestor or descendant of the tax-
payer or the taxpayer’s spouse, is a mem-
ber of the taxpayer’s household for over
half the taxable year, or
‘‘(ii) in the case of any other indi-
vidual, is a member of the taxpayer’s
household for the entire taxable year.
‘‘(C) SPECIAL RULES WHERE MORE THAN
1 ELIGIBLE CAREGIVER.—
‘‘(i) IN GENERAL.—If more than 1 in-
dividual is an eligible caregiver with re-
spect to the same applicable individual for
taxable years ending with or within the
same calendar year, a taxpayer shall be
treated as the eligible care giver if each
such individual (other than the taxpayer)
files a written declaration (in such form
and manner as the Secretary may pre-
scribe) that such individual will not claim
such applicable individual for the credit
under this section.
‘‘(ii) NO AGREEMENT.—If each indi-
vidual required under clause (i) to file a
written declaration under clause (i) does
not do so, the individual with the highest
modified adjusted gross income (as defined
in section 32(c)(5)) shall be treated as the
eligible caregiver.
‘‘(iii) MARRIED
INDIVIDUALS
FILING
SEPARATELY.—In the case of married indi-
viduals filing separately, the determination
under this subparagraph as to whether the
husband or wife is the eligible caregiver
shall be made under the rules of clause (ii)
(whether or not one of them has filed a
written declaration under clause (i)).’’.
(c) IDENTIFICATION REQUIREMENTS.—
(1) IN GENERAL.—Section 24(e) is amended by
adding at the end the following new sentence: ‘‘No
credit shall be allowed under this section to a tax-
payer with respect to any applicable individual un-
less the taxpayer includes the name and taxpayer
identification number of such individual, and the
identification number of the physician certifying
such individual, on the return of tax for the taxable
year.’’.
(2) ASSESSMENT.—Section 6213(g)(2)(I) is
amended—
(A) by inserting ‘‘or physician identifica-
tion’’ after ‘‘correct TIN’’, and
(B) by striking ‘‘child’’ and inserting
‘‘family care’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
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