I 
111TH CONGRESS 
1ST SESSION H. R. 2705 
To amend the Internal Revenue Code of 1986 to allow a refundable credit 
for advance directives. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2009 
Mr. MCDERMOTT 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 allow a 
refundable credit for advance directives. 
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 ‘‘Advance Directive In-
centive Act’’. 
SEC. 2. REFUNDABLE CREDIT FOR ADVANCE DIRECTIVES. 
(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 insert-
ing after section 36A the following new section: 
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‘‘SEC. 36B. ADVANCE DIRECTIVES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed to the taxpayer as a credit 
against the tax imposed by this subtitle for the taxable 
year an amount equal to 30 percent of qualified expenses 
of the taxpayer. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The aggregate amount of 
expenses which may be taken into account under 
subsection (a) for the taxable year shall not exceed 
$500, reduced (but not below zero) by the amount 
of expenses taken into account under this section for 
all prior taxable years. 
‘‘(2) SPECIAL
RULE.—For purposes of para-
graph (1), in the case of a joint return for any prior 
taxable year, amounts taken into account under this 
section shall be treated as expenses of both the hus-
band and the wife. 
‘‘(c) QUALIFIED EXPENSES.—For purposes of this 
section— 
‘‘(1) QUALIFIED EXPENSES.—The term ‘quali-
fied expenses’ means legal fees incurred for the pur-
pose of establishing an advance directive. 
‘‘(2) ADVANCE DIRECTIVE.—The term ‘advance 
directive’ means, with respect to an individual, a 
written instruction, such as a living will or durable 
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power of attorney for health care or establishment of 
a health care proxy, recognized under State law 
(whether statutory or as recognized by the courts of 
the State) and relating to the provision of medical 
care in the case the individual is incapacitated.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36B,’’ after ‘‘section 36A,’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 36A the following new item: 
‘‘Sec. 36B. Advance directives.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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