I
103D CONGRESS
1ST SESSION
H. R. 2368
To amend the Internal Revenue Code of 1986 to provide a deduction for
expenses of providing care for certain elderly individuals, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 10, 1993
Mr. BILIRAKIS (for himself, Mr. LIPINSKI, Mr. SMITH of New Jersey, Mr.
DOOLITTLE, Mr. MACHTLEY, Mrs. THURMAN, Mr. GREENWOOD, and
Mrs. MEYERS of Kansas) 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 deduction for expenses of providing care for certain
elderly individuals, and for other purposes.
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 ‘‘Older Americans Eco-
nomic Security Act of 1993’’.
SEC. 2. TAX DEDUCTION FOR CARE OF CERTAIN ELDERLY
INDIVIDUALS.
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
additional itemized deductions for individuals) is amended
by redesignating section 220 as section 221 and by insert-
ing after section 219 the following new section:
‘‘SEC. 220. EXPENSES FOR CARE OF CERTAIN ELDERLY IN-
DIVIDUALS.
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an
individual, there shall be allowed as a deduction an
amount equal to the amount by which the qualified elderly
care expenses paid by the taxpayer during the taxable year
exceed 5 percent of the adjusted gross income of the tax-
payer.
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED ELDERLY CARE EXPENSES.—
The term ‘qualified elderly care expenses’ means
payments by the taxpayer for in-home custodial
care—
‘‘(A) provided to any qualifying elderly in-
dividual, and
‘‘(B) not compensated for by insurance or
otherwise.
‘‘(2) QUALIFYING ELDERLY INDIVIDUAL.—The
term ‘qualifying elderly individual’ means any indi-
vidual—
‘‘(A) who has attained age 65 before the
close of the taxable year, and
‘‘(B) who is—
‘‘(i) a parent or grandparent of the
taxpayer during the taxable year, or
‘‘(ii) a dependent (as defined in sec-
tion 152) of the taxpayer during the tax-
able year.
‘‘(3) CUSTODIAL
CARE.—The term ‘custodial
care’ means services which constitute personal care
and which do not entail or require the continuing at-
tention of trained medical or paramedical personnel,
such as help in walking and getting in and out of
bed, assistance in bathing, dressing, feeding, and
using a toilet, preparation of special diets, and su-
pervision over the taking of medication which would
otherwise usually be self-administered.
‘‘(c) SPECIAL RULES.—
‘‘(1) 
DETERMINATION
OF
PARENTS
AND
GRANDPARENTS.—Paragraph (2) of section 152(b)
(relating to rules relating to general definition of de-
pendent) shall apply to the determination of whether
any of the relationships specified in clause (i) of sub-
section (b)(2)(B) exists.
‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion or credit shall be allowed under any other provi-
sion of this chapter with respect to any amount for
which a deduction is allowed under subsection (a).’’
(b) DEDUCTION NOT SUBJECT TO FLOOR ON MIS-
CELLANEOUS ITEMIZED DEDUCTIONS.—Subsection (b) of
section 67 of such Code is amended by striking ‘‘and’’ at
the end of paragraph (12), by striking the period at the
end of paragraph (13) and inserting ‘‘, and’’, and by add-
ing at the end thereof the following new paragraph:
‘‘(14) the deduction under section 220 (relating
to expenses for care of certain elderly individuals).’’
(c) CLERICAL AMENDMENT.—The table of sections
for part VII of subchapter B of chapter 1 of such Code
is amended by striking the last item and inserting the fol-
lowing new items:
‘‘Sec. 220. Expenses for care of certain elderly individuals.
‘‘Sec. 221. Cross reference.’’
SEC. 3. INCLUSION OF CERTAIN GOODS AND SERVICES DO-
NATED BY PHYSICIANS OR REGISTERED PRO-
FESSIONAL NURSES TO ELDERLY INDIVID-
UALS AS CHARITABLE DEDUCTIONS.
(a) IN GENERAL.—Subsection (c) of section 170 of
the Internal Revenue Code of 1986 (relating to charitable
contribution defined) is amended by inserting after para-
graph (5) the following new paragraph:
‘‘(6) An individual who has attained age 65 and
who is not a member of the donor’s family if the
contribution or gift is the rendering of medical serv-
ices or the provision of medical goods by a physician
(as defined in section 213(d)(4)) or by a registered
professional nurse.’’
(b) VALUATION
OF GOODS
AND SERVICES DO-
NATED.—Section 170 of such Code (relating to charitable,
etc., contributions and gifts) is amended by redesignating
subsection (m) as subsection (n) and by inserting after
subsection (l) the following new subsection:
‘‘(m) VALUATION OF CONTRIBUTIONS AND GIFTS
DESCRIBED IN SUBSECTION (c)(6).—The value of con-
tributions and gifts described in subsection (c)(6) shall be
determined as if provided to an individual under the insur-
ance program established by part B of title XVIII of the
Social Security Act (42 U.S.C. ch. 7, subch. XVIII, part
B), in accordance with the provisions of subsections (a)
and (c) of section 1833 of such Act (42 U.S.C. 1395l).’’
SEC. 4. TAX-FREE WITHDRAWALS FROM INDIVIDUAL RE-
TIREMENT ACCOUNTS TO PAY LONG-TERM
CARE EXPENSES OR TO PURCHASE LONG-
TERM CARE INSURANCE.
(a) IN GENERAL.—Subsection (d) of section 408 of
the Internal Revenue Code of 1986 (relating to tax treat-
ment of distributions from individual retirement accounts)
is amended by adding at the end the following new para-
graph:
‘‘(8) DISTRIBUTIONS TO PAY LONG-TERM CARE
EXPENSES OR PURCHASE LONG-TERM CARE INSUR-
ANCE.—
‘‘(A) IN
GENERAL.—Paragraph (1) shall
not apply to any amount paid or distributed out
of an individual retirement account or individ-
ual retirement annuity to the individual for
whose benefit the account or annuity is main-
tained if the entire amount received (including
money and any other property) is used, within
30 days after the individual receives the pay-
ment or distribution—
‘‘(i) to pay long-term care expenses of
the individual, or
‘‘(ii) to purchase insurance covering
such expenses.
‘‘(B) LONG-TERM
CARE
EXPENSES
DE-
FINED.—For purposes of subparagraph (A), the
term ‘long-term care expenses’ means, with re-
spect to an individual, expenses incurred by the
individual for—
‘‘(i) custodial or health care provided
to the individual in a nursing home, and
‘‘(ii) any goods or services provided to
the individual outside a nursing home in
connection with the provision of custodial
or health care to the individual.’’
SEC. 5. EFFECTIVE DATE.
The amendments made by this Act shall apply to tax-
able years beginning after December 31, 1993.
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