I
107TH CONGRESS
1ST SESSION
H. R. 2575
To amend the Internal Revenue Code of 1986 to provide a credit against
income tax for caregivers of individuals with long-term care needs.
IN THE HOUSE OF REPRESENTATIVES
JULY 19, 2001
Mr. MURTHA 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 against income tax for caregivers of individuals
with long-term care needs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CREDIT FOR TAXPAYERS WITH LONG-TERM
CARE NEEDS.
(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. 25C. CREDIT FOR TAXPAYERS WITH LONG-TERM
CARE NEEDS.
‘‘(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 $1,200 multiplied
by the number of applicable individuals with respect to
whom the taxpayer is an eligible caregiver for the taxable
year.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) 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 391⁄2 month
period ending on such due date (or such other
period as the Secretary prescribes) a physician
(as so defined) has certified that such indi-
vidual meets such requirements.
‘‘(B) INDIVIDUALS WITH LONG-TERM CARE
NEEDS.—An individual is described in this sub-
paragraph if the individual is at least 6 years
of age and—
‘‘(I) is unable to perform (without
substantial assistance from another indi-
vidual) 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 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 cuing assistance, at least
1 activity of daily living (as so defined) or
to the extent provided in regulations pre-
scribed by the Secretary (in consultation
with the Secretary of Health and Human
Services), is unable to engage in age ap-
propriate activities.
‘‘(2) 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) A brother or sister of the tax-
payer.
‘‘(iv) The mother or father of the tax-
payer.
‘‘(B) 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 caregiver 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
(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
25C(c) (relating to credit for taxpayers with
long-term care needs) to be included on a re-
turn.’’.
(2) 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 relating to sec-
tion 25B the following new item:
‘‘Sec. 25C. Credit for taxpayers with long-term care needs.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
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