I 
117TH CONGRESS 
1ST SESSION H. R. 3689 
To amend the Internal Revenue Code of 1986 to provide an income tax 
credit for eldercare expenses. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2021 
Mrs. AXNE (for herself, Ms. SCHAKOWSKY, and Mr. MCKINLEY) 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 
an income tax credit for eldercare expenses. 
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 ‘‘Americans Giving Care 
to Elders (AGE) Act of 2021’’. 
SEC. 2. CREDIT FOR ELDERCARE EXPENSES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 25D the fol-
lowing new section: 
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‘‘SEC. 25E. EXPENSES FOR ELDERCARE. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—In the case of an individual 
for which there are 1 or more qualifying individuals 
with respect to such individual, there shall be al-
lowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to the 
applicable percentage of the eldercare expenses paid 
by such individual during the taxable year. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the term ‘applicable percentage’ 
means 20 percent, reduced (but not below zero) by 
1 percentage point for each $4,000 (or fraction 
thereof) by which the taxpayer’s adjusted gross in-
come for the taxable year exceeds $120,000. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) 
QUALIFYING
INDIVIDUAL.—The 
term 
‘qualifying individual’ means an individual— 
‘‘(A) who has attained age 60, 
‘‘(B) who requires assistance with activities 
of daily living, and 
‘‘(C) who is, with respect to the taxpayer 
or the taxpayer’s spouse— 
‘‘(i) the father or mother or an ances-
tor of such father or mother, 
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‘‘(ii) the father-in-law or mother-in- 
law or an ancestor of such father-in-law or 
mother-in-law, 
‘‘(iii) the stepfather or stepmother or 
an ancestor of such stepfather or step-
mother, 
‘‘(iv) any other person who, for the 
taxable year, has the same principal place 
of abode as the taxpayer and is a member 
of the household of the taxpayer, or 
‘‘(v) a family member or other indi-
vidual who has a significant relationship 
with the taxpayer or the taxpayer’s spouse, 
and to whom such taxpayer or spouse pro-
vides a broad range of assistance with re-
spect to a chronic or other health condi-
tion, disability, or functional limitation. 
‘‘(2) ELDERCARE EXPENSES.— 
‘‘(A) IN
GENERAL.—The term ‘eldercare 
expenses’ means the following amounts paid for 
expenses relating to the care of a qualifying in-
dividual: 
‘‘(i) Medical care (as defined in sec-
tion 213(d)(1), without regard to subpara-
graph D thereof). 
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‘‘(ii) Lodging away from home in ac-
cordance with section 213(d)(2). 
‘‘(iii) Adult day services. 
‘‘(iv) Personal care. 
‘‘(v) Respite care. 
‘‘(vi) Assistive technologies and de-
vices (including remote health monitoring). 
‘‘(vii) 
Environmental 
modifications 
(including home modifications). 
‘‘(viii) Counseling or training for a 
caregiver. 
‘‘(B) DEFINITIONS.—For purposes of sub-
paragraph (A)— 
‘‘(i) ADULT
DAY
SERVICES.—The 
term ‘adult day services’ means care pro-
vided for adults with functional or cog-
nitive impairments through a structured, 
community-based group program which 
provides health, social, and other related 
support services on a less than 24-hour 
basis. 
‘‘(ii) PERSONAL
CARE.—The term 
‘personal care’ means reasonable personal 
care services provided to assist with daily 
living which do not require the skills of 
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qualified technical or professional per-
sonnel. 
‘‘(iii) RESPITE CARE.—The term ‘res-
pite care’ means planned or emergency 
care intended to provide temporary relief 
to a caregiver. 
‘‘(C) CARE CENTERS.— 
‘‘(i) 
IN
GENERAL.—Eldercare 
ex-
penses described in subparagraph (A) 
which are incurred for services provided 
outside the taxpayer’s household by a care 
center shall be taken into account only if 
such center complies with all applicable 
laws and regulations of a State or unit of 
local government. 
‘‘(ii) CARE CENTER.—For purposes of 
this subparagraph, the term ‘care center’ 
means any facility which— 
‘‘(I) provides care for more than 
6 individuals, and 
‘‘(II) receives a fee, payment, or 
grant for providing services for any of 
the individuals (regardless of whether 
such facility is operated for profit). 
‘‘(c) DOLLAR LIMITATION.— 
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‘‘(1) 
IN
GENERAL.—The 
amount 
of 
the 
eldercare expenses incurred during any taxable year 
which may be taken into account under subsection 
(a) shall not exceed $6,000. 
‘‘(2) COORDINATION WITH DEPENDENT CARE 
ASSISTANCE
EXCLUSION.—The dollar amount in 
paragraph (1) shall be reduced by the aggregate 
amount excluded from gross income under section 
129 for the taxable year, if any. 
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) PAYMENTS TO RELATED INDIVIDUALS.— 
No credit shall be allowed under subsection (a) for 
any amount paid to an individual with respect to 
whom, for the taxable year, a deduction under sec-
tion 151(c) is allowable either to the taxpayer or the 
taxpayer’s spouse. For purposes of this paragraph, 
the term ‘taxable year’ means the taxable year of the 
taxpayer in which the service is performed. 
‘‘(2) IDENTIFYING
INFORMATION
REQUIRED 
WITH RESPECT TO SERVICE PROVIDER.—No credit 
shall be allowed under subsection (a) for any amount 
paid to any person unless— 
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‘‘(A) the name, address, and taxpayer 
identification number of such person are in-
cluded on the return claiming the credit, or 
‘‘(B) if such person is an organization de-
scribed in section 501(c)(3) and exempt from 
tax under section 501(a), the name and address 
of such person are included on the return 
claiming the credit. 
In the case of a failure to provide the information 
required under the preceding sentence, the preceding 
sentence shall not apply if it is shown that the tax-
payer exercised due diligence in attempting to pro-
vide the information so required. 
‘‘(3) IDENTIFYING
INFORMATION
REQUIRED 
WITH RESPECT TO QUALIFYING INDIVIDUALS.—No 
credit shall be allowed under subsection (a) with re-
spect to any qualifying individual unless the tax-
payer identification number of such individual is in-
cluded on the return claiming the credit. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 
be allowed under subsection (a) for any amount with re-
spect to which a credit is allowed under section 21. 
‘‘(f) REGULATIONS AND GUIDANCE.—Not later than 
one year after the date of the enactment of this section, 
the Secretary shall promulgate such regulations or guid-
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ance as are necessary to carry out this section and to pre-
vent fraud and abuse with respect to the credit under this 
section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 25D the following 
new item: 
‘‘Sec. 25E. Expenses for eldercare.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 213(e) of the Internal Revenue 
Code of 1986 is amended— 
(A) by inserting ‘‘or section 25E’’ after 
‘‘section 21’’, and 
(B) by inserting ‘‘AND ELDERS’’ after 
‘‘CERTAIN DEPENDENTS’’ in the heading. 
(2) Section 6213(g)(2) of such Code is amend-
ed— 
(A) by inserting ‘‘, section 25E (relating to 
expenses for care of elders),’’ after ‘‘(relating to 
expenses for household and dependent care 
services necessary for gainful employment)’’ in 
subparagraph (H), and 
(B) by inserting ‘‘, 25E’’ after ‘‘24’’ in 
subparagraph (L). 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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