I 
109TH CONGRESS 
1ST SESSION H. R. 3254 
To provide funding and incentives for caregiver support and long-term care 
assistance. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 12, 2005 
Mr. MENENDEZ (for himself, Ms. ROS-LEHTINEN, Mr. BRADY of Pennsyl-
vania, Ms. DELAURO, Mr. MCNULTY, Mr. BOUSTANY, Mr. RANGEL, Ms. 
WASSERMAN SCHULTZ, Mr. WEXLER, and Mr. OWENS) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Education and the Workforce, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To provide funding and incentives for caregiver support and 
long-term care assistance. 
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 ‘‘Caregiver Assistance 
and Relief Effort Act of 2005’’ or as the ‘‘CARE Act of 
2005’’.
SEC. 2. INCREASED FUNDING FOR NATIONAL FAMILY 
CAREGIVER SUPPORT PROGRAM. 
(a) IN GENERAL.—Section 303(e)(1) of the Older 
Americans Act of 1965 (42 U.S.C. 3023(e)(1)) is amend-
ed by striking ‘‘$125,000,000 for fiscal year 2001’’ and 
inserting ‘‘$250,000,000 for fiscal year 2006’’. 
(b) NATIVE AMERICANS.—Section 643(2) of the 
Older Americans Act of 1965 (42 U.S.C. 3057n(2)) is 
amended by striking ‘‘$5,000,000 for fiscal year 2001’’ 
and inserting ‘‘$10,000,000 for fiscal year 2006’’. 
SEC. 3. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE 
NEEDS. 
(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 redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE 
NEEDS. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by this chapter for 
the taxable year an amount equal to the applicable 
amount multiplied by the number of applicable indi-
viduals with respect to whom the taxpayer is an eli-
gible caregiver for the taxable year.
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1), the applicable amount shall be deter-
mined in accordance with the following table: 
‘‘In the case of taxable years beginning in: 
The ap-
plicable 
amount 
is: 
2005 ................................................................................................
$2,500
2006 ................................................................................................
$2,750
2007 or thereafter ..........................................................................
$3,000. 
‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN-
COME.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowable under subsection (a) shall be reduced (but 
not below zero) by $100 for each $1,000 (or fraction 
thereof) by which the taxpayer’s modified adjusted 
gross income exceeds the threshold amount. For 
purposes of the preceding sentence, the term ‘modi-
fied adjusted gross income’ means adjusted gross in-
come increased by any amount excluded from gross 
income under section 911, 931, or 933. 
‘‘(2) THRESHOLD AMOUNT.—For purposes of 
paragraph (1), the term ‘threshold amount’ means 
$75,000 (twice such amount in the case of joint re-
turn). 
‘‘(3) INDEXING.—In the case of any taxable 
year beginning in a calendar year after 2005, the
$75,000 amount contained in paragraph (2) shall be 
increased by an amount equal to the product of— 
‘‘(A) such dollar amount, and 
‘‘(B) the medical care cost adjustment de-
termined under section 213(d)(10)(B)(ii) for 
the calendar year in which the taxable year be-
gins, determined by substituting ‘2004’ for 
‘1996’ in subclause (II) thereof. 
If any increase determined under the preceding sen-
tence is not a multiple of $50, such increase shall 
be rounded to the next lowest multiple of $50. 
‘‘(c) 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 meets any of the fol-
lowing requirements: 
‘‘(i) The individual is at least 18 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) or to the 
extent provided in regulations pre-
scribed by the Secretary (in consulta-
tion with the Secretary of Health and 
Human Services), is unable to engage 
in age appropriate activities. 
‘‘(ii) The individual is at least 6 but 
not 18 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, 
‘‘(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) or to the 
extent provided in regulations pre-
scribed by the Secretary (in consulta-
tion with the Secretary of Health and