Human Services), is unable to engage 
in age appropriate activities, 
‘‘(III) has a level of disability 
similar to the level of disability de-
scribed in subclause (I) (as deter-
mined under regulations promulgated 
by the Secretary), or 
‘‘(IV) has a complex medical con-
dition (as defined by the Secretary) 
that requires medical management 
and coordination of care. 
‘‘(iii) The individual is at least 2 but 
not 6 years of age and— 
‘‘(I) is unable due to a loss of 
functional capacity to perform (with-
out substantial assistance from an-
other individual) at least 2 of the fol-
lowing activities: eating, transferring, 
or mobility, 
‘‘(II) has a level of disability 
similar to the level of disability de-
scribed in subclause (I) (as deter-
mined under regulations promulgated 
by the Secretary), or
‘‘(III) has a complex medical con-
dition (as defined by the Secretary) 
that requires medical management 
and coordination of care. 
‘‘(iv) The individual is under 2 years 
of age and— 
‘‘(I) requires specific durable 
medical equipment by reason of a se-
vere health condition or requires a 
skilled practitioner trained to address 
the individual’s condition to be avail-
able if the individual’s parents or 
guardians are absent, 
‘‘(II) has a level of disability 
similar to the level of disability de-
scribed in subclause (I) (as deter-
mined under regulations promulgated 
by the Secretary), or 
‘‘(III) has a complex medical con-
dition (as defined by the Secretary) 
that requires medical management 
and coordination of care. 
‘‘(v) The individual has 5 or more 
chronic conditions (as defined in subpara-
graph (C)) and is unable to perform (with-
out substantial assistance from another in-
dividual) at least 1 activity of daily living 
(as so defined) due to a loss of functional 
capacity. 
‘‘(C) CHRONIC CONDITION.—For purposes 
of this paragraph, the term ‘chronic condition’ 
means a condition that lasts for at least 6 con-
secutive months and requires ongoing medical 
care. 
‘‘(2) ELIGIBLE CAREGIVER.—A taxpayer shall 
be treated as an eligible caregiver for any taxable 
year with respect to the taxpayer and the taxpayer’s 
spouse and dependents. A taxpayer shall not be 
treated as an eligible caregiver with respect to him-
self for any taxable year beginning in any calendar 
year if any other person is an eligible caregiver with 
respect to the taxpayer for a taxable year which be-
gins in such calendar year. 
‘‘(d) IDENTIFICATION
REQUIREMENT.—No credit 
shall be allowed under this section to a taxpayer with re-
spect to any applicable individual unless the taxpayer in-
cludes the name and taxpayer identification number of 
such individual, and the identification number of the phy-
sician certifying such individual, on the return of tax for 
the taxable year.
‘‘(e) TAXABLE YEAR MUST BE FULL TAXABLE 
YEAR.—Except in the case of a taxable year closed by rea-
son of the death of the taxpayer, no credit shall be allow-
able under this section in the case of a taxable year cov-
ering a period of less than 12 months.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6213(g)(2) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ at the 
end of subparagraph (L), by striking the period at 
the end of subparagraph (M) and inserting ‘‘, and’’, 
and by inserting after subparagraph (M) the fol-
lowing new subparagraph: 
‘‘(N) an omission of a correct TIN or phy-
sician identification required under section 
36(d) (relating to credit for taxpayers with 
long-term care needs) to be included on a re-
turn.’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of such Code is 
amended by redesignating the item relating to sec-
tion 36 as an item relating to section 37 and by in-
serting before such item the following new item: 
‘‘Sec. 36. Credit for taxpayers with long-term care needs.’’. 
(3) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘or 36’’ after 
‘‘section 35’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
SEC. 4. TREATMENT OF PREMIUMS ON QUALIFIED LONG- 
TERM CARE INSURANCE CONTRACTS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
additional itemized deductions) is amended by redesig-
nating section 224 as section 225 and by inserting after 
section 223 the following new section: 
‘‘SEC. 224. PREMIUMS ON QUALIFIED LONG-TERM CARE IN-
SURANCE CONTRACTS. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a deduction an amount equal to 
the applicable percentage of the amount of eligible long- 
term care premiums (as defined in section 213(d)(10)) 
paid during the taxable year for coverage for the taxpayer 
and the taxpayer’s spouse and dependents under a quali-
fied long-term care insurance contract (as defined in sec-
tion 7702B(b)). 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a)— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the applicable percentage 
shall be determined in accordance with the following
table based on the number of years of continuous 
coverage (as of the close of the taxable year) of the 
individual under any qualified long-term care insur-
ance contracts (as defined in section 7702B(b)): 
‘‘If the number of years of 
The applicable 
continuous coverage is— 
percentage is— 
Less than 1 ..................................................................
At least 1 but less than 2 .............................................
At least 2 but less than 3 .............................................
At least 3 but less than 4 .............................................
At least 4 ......................................................................
100.
‘‘(2) SPECIAL
RULES
FOR
INDIVIDUALS
WHO 
HAVE ATTAINED AGE 55.—In the case of an indi-
vidual who has attained age 55 as of the close of the 
taxable year, the following table shall be substituted 
for the table in paragraph (1): 
‘‘If the number of years of 
The applicable 
continuous coverage is— 
percentage is— 
Less than 1 ..................................................................
At least 1 but less than 2 .............................................
At least 2 ......................................................................
100.
‘‘(3) ONLY COVERAGE AFTER 2004 TAKEN INTO 
ACCOUNT.—Only coverage for periods after Decem-
ber 31, 2004, shall be taken into account under this 
subsection. 
‘‘(4) CONTINUOUS
COVERAGE.—An individual 
shall not fail to be treated as having continuous cov-
erage if the aggregate breaks in coverage during any 
1-year period are less than 60 days. 
‘‘(c) COORDINATION WITH OTHER DEDUCTIONS.— 
Any amount paid by a taxpayer for any qualified long-
term care insurance contract to which subsection (a) ap-
plies shall not be taken into account in computing the 
amount allowable to the taxpayer as a deduction under 
section 162(l) or 213(a).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 62(a) of the Internal Revenue Code 
of 1986 is amended by inserting before the last sen-
tence the following new paragraph: 
‘‘(21) PREMIUMS
ON
QUALIFIED
LONG-TERM 
CARE
INSURANCE
CONTRACTS.—The deduction al-
lowed by section 224.’’. 
(2) The table of sections for part VII of sub-
chapter B of chapter 1 of such Code is amended by 
redesignating the item relating to section 224 as an 
item relating to section 225 and by inserting before 
such item the following new item: 
‘‘Sec. 224. Premiums on qualified long-term care insurance contracts.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
SEC. 5. ADDITIONAL CONSUMER PROTECTIONS FOR LONG- 
TERM CARE INSURANCE. 
(a) ADDITIONAL
PROTECTIONS
APPLICABLE
TO 
LONG-TERM CARE INSURANCE.—Subparagraphs (A) and 
(B) of section 7702B(g)(2) of the Internal Revenue Code
of 1986 (relating to requirements of model regulation and 
Act) are amended to read as follows: 
‘‘(A) IN GENERAL.—The requirements of 
this paragraph are met with respect to any con-
tract if such contract meets— 
‘‘(i) MODEL
REGULATION.—The fol-
lowing requirements of the model regula-
tion: 
‘‘(I) Section 6A (relating to guar-
anteed renewal or noncancellability), 
other than paragraph (5) thereof, and 
the requirements of section 6B of the 
model Act relating to such section 6A. 
‘‘(II) Section 6B (relating to pro-
hibitions on limitations and exclu-
sions) other than paragraph (7) there-
of. 
‘‘(III) Section 6C (relating to ex-
tension of benefits). 
‘‘(IV) Section 6D (relating to 
continuation or conversion of cov-
erage). 
‘‘(V) Section 6E (relating to dis-
continuance and replacement of poli-
cies).
‘‘(VI) Section 7 (relating to unin-
tentional lapse). 
‘‘(VII) Section 8 (relating to dis-
closure), other than sections 8F, 8G, 
8H, and 8I thereof. 
‘‘(VIII) Section 11 (relating to 
prohibitions against post-claims un-
derwriting). 
‘‘(IX) Section 12 (relating to 
minimum standards). 
‘‘(X) Section 13 (relating to re-
quirement to offer inflation protec-
tion). 
‘‘(XI) Section 25 (relating to pro-
hibition against preexisting conditions 
and probationary periods in replace-
ment policies or certificates). 
‘‘(XII) The provisions of section 
26 relating to contingent nonforfeiture 
benefits, if the policyholder declines 
the offer of a nonforfeiture provision 
described in paragraph (4). 
‘‘(ii) MODEL ACT.—The following re-
quirements of the model Act:
‘‘(I) Section 6C (relating to pre-
existing conditions). 
‘‘(II) Section 6D (relating to 
prior hospitalization). 
‘‘(III) The provisions of section 8 
relating to contingent nonforfeiture 
benefits, if the policyholder declines 
the offer of a nonforfeiture provision 
described in paragraph (4). 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) MODEL PROVISIONS.—The terms 
‘model regulation’ and ‘model Act’ mean 
the long-term care insurance model regula-
tion, and the long-term care insurance 
model Act, respectively, promulgated by 
the National Association of Insurance 
Commissioners (as adopted as of October 
2000). 
‘‘(ii) COORDINATION.—Any provision 
of the model regulation or model Act listed 
under clause (i) or (ii) of subparagraph 
(A) shall be treated as including any other 
provision of such regulation or Act nec-
essary to implement the provision.