I
106TH CONGRESS
1ST SESSION
H. R. 2458
To amend the Internal Revenue Code of 1986 and to provide a refundable
caregivers tax credit.
IN THE HOUSE OF REPRESENTATIVES
JULY 1, 1999
Mr. STARK (for himself and Mr. MARKEY) introduced the following bill; which
was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 and to provide
a refundable caregivers tax credit.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Caregivers Assistance Act of 1999’’.
SEC. 2. REFUNDABLE CREDIT FOR LONG-TERM CARE.
(a) GENERAL RULE.—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-
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ignating section 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. FAMILY CARE CREDIT.
‘‘(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 $1,000
multiplied by the number of applicable individuals with re-
spect to whom the taxpayer is an eligible caregiver for the
taxable year.
‘‘(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 $50 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—
‘‘(A) $110,000 in the case of a joint re-
turn,
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‘‘(B) $75,000 in the case of an individual
who is not married, and
‘‘(C) $55,000 in the case of a married in-
dividual filing a separate return.
For purposes of this paragraph, marital status shall
be determined under section 7703.
‘‘(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
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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 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) or to the
extent provided in regulations pre-
scribed by the Secretary (in consulta-
tion with the Secretary of Health and
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Human Services), is unable to engage
in age appropriate activities, or
‘‘(III) requires substantial super-
vision to protect such individual from
threats to health and safety due to a
severe psychological disability, mental
retardation, or related developmental
disabilities and would otherwise re-
quire residence in a psychiatric hos-
pital, an intermediate care facility for
the mentally retarded, or similar resi-
dential facility approved by the Sec-
retary of Health and Human Services.
‘‘(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-
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tion to be available if the individual’s par-
ents or guardians are absent.
‘‘(C) PSYCHOLOGICAL
DISABILITY
DE-
FINED.—In this section, the term ‘psychological
disability’ shall refer to diagnosable clinical con-
ditions on Axis I or Axis II of the current edi-
tion of the American Psychiatric Association’s
Diagnostic and Statistical Manual of Mental
Disorders and is of a severity that requires sub-
stantial supervision or residence in a psychiatric
hospital or similar residential facility approved
by the Secretary.
‘‘(D) MENTAL RETARDATION DEFINED.—
In this section, the term ‘mental retardation’
shall have the same meaning as ‘developmental
disabilities’ as defined in section 102 of the De-
velopmental Disabilities Assistance and Bill of
Rights Act (42 U.S.C. 6000) consistent with
the requirements of section 305(a)(2)(E) and is
of a severity that requires substantial super-
vision or residence in an intermediate care facil-
ity for the mentally retarded, or similar residen-
tial facility approved by the Secretary of Health
and Human Services.
‘‘(2) ELIGIBLE CAREGIVER.—
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‘‘(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
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‘‘(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 caregiver if each
such individual (other than the taxpayer)