I 
113TH CONGRESS 
1ST SESSION H. R. 1597 
To amend the Internal Revenue Code of 1986 to provide a credit to individ-
uals for legal expenses paid with respect to establishing guardianship 
of a disabled individual. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 17, 2013 
Mr. DEUTCH 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 credit to individuals for legal expenses paid with re-
spect to establishing guardianship of a disabled indi-
vidual. 
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 ‘‘Special Needs Tax 
Credit Act’’. 
VerDate Mar 15 2010 
05:07 Apr 19, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1597.IH
H1597
jbell on DSK7SPTVN1PROD with BILLS
SEC. 2. CREDIT FOR LEGAL EXPENSES PAID WITH RESPECT 
TO ESTABLISHING GUARDIANSHIP OF A DIS-
ABLED INDIVIDUAL. 
(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 36B the following new section: 
‘‘SEC. 36C. CREDIT FOR LEGAL EXPENSES PAID WITH RE-
SPECT TO ESTABLISHING GUARDIANSHIP OF 
A DISABLED INDIVIDUAL. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this subtitle an amount equal to the qualified legal 
guardianship expenses paid or incurred by the taxpayer 
during the taxable year. 
‘‘(b) DOLLAR
LIMITATION.—The credit allowed 
under subsection (a) to any taxpayer with respect to any 
disabled individual for any taxable year shall not exceed 
the excess of— 
‘‘(1) $5,000, over 
‘‘(2) the aggregate amount allowed as credit 
under subsection (a) to such taxpayer with respect 
to such disabled individual for all prior taxable 
years. 
‘‘(c) PHASEOUT BASED ON ADJUSTED GROSS IN-
COME.—The dollar limitation applicable under subsection 
VerDate Mar 15 2010 
05:07 Apr 19, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1597.IH
H1597
jbell on DSK7SPTVN1PROD with BILLS
(b) shall be reduced by the amount which bears the same 
ratio to such dollar limitation (determined without regard 
to this subsection) as— 
‘‘(1) the excess of— 
‘‘(A) the taxpayer’s adjusted gross income, 
over 
‘‘(B) $75,000 (twice such amount in the 
case of a joint return), bears to 
‘‘(2) $15,000 (twice such amount in the case of 
a joint return). 
‘‘(d) 
QUALIFIED
LEGAL
GUARDIANSHIP
EX-
PENSES.—For purposes of this section, the term ‘qualified 
legal guardianship expenses’ means amounts paid or in-
curred by an individual as legal expenses in establishing 
such individual as the legal guardian of a disabled indi-
vidual. 
‘‘(e) DISABLED INDIVIDUAL.—For purposes of this 
section, the term ‘disabled individual’ means any indi-
vidual who is disabled (within the meaning of section 
1614(a)(3) of the Social Security Act).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 
VerDate Mar 15 2010 
05:07 Apr 19, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1597.IH
H1597
jbell on DSK7SPTVN1PROD with BILLS