I 
110TH CONGRESS 
2D SESSION 
H. R. 6390 
To amend the Internal Revenue Code of 1986 to provide a credit against 
tax for certain caregivers, to expand the dependent care credit, and 
to increase the exclusion limitation for dependent care assistance pro-
grams. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2008 
Ms. CORRINE BROWN of Florida 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 against tax for certain caregivers, to expand 
the dependent care credit, and to increase the exclusion 
limitation for dependent care assistance programs. 
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 ‘‘Caregiver Financial 
Relief Act of 2008’’. 
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 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. 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 $3,000 
multiplied by the number of applicable individuals with re-
spect to whom the taxpayer is an eligible caregiver for the 
taxable year. 
‘‘(b) LIMITATION.— 
‘‘(1) APPLICABLE
INDIVIDUALS
TAKEN
INTO 
ACCOUNT.—For purposes of this section, a taxpayer 
may not take into account more than 2 applicable 
individuals (4 in the case of a joint return) for any 
taxable year. 
‘‘(2) BASED ON ADJUSTED GROSS INCOME.— 
‘‘(A) IN
GENERAL.—The amount of the 
credit allowable under subsection (a) shall be 
reduced (but not below zero) by $100 for each 
$1,000 (or fraction thereof) by which the tax-
payer’s modified adjusted gross income exceeds 
the threshold amount. For purposes of the pre-
ceding sentence, the term ‘modified adjusted 
gross income’ means adjusted gross income in-
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
creased by any amount excluded from gross in-
come under section 911, 931, or 933. 
‘‘(B) THRESHOLD AMOUNT.—For purposes 
of this paragraph, the term ‘threshold amount’ 
means— 
‘‘(i) $150,000 in the case of a joint 
return, and 
‘‘(ii) $100,000 in the case of an indi-
vidual who is not married, and 
‘‘(iii) $75,000 in the case of a married 
individual filing a separate return. 
‘‘(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 (determined without regard to 
extensions), by a physician (as defined in sec-
tion 1861(r) 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 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
‘‘(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 
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, 
‘‘(II) requires substantial super-
vision to protect such individual from 
threats to health and safety due to se-
vere cognitive impairment and is un-
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
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 
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. 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
‘‘(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-
tion to be available if the individual’s par-
ents or guardians are absent. 
‘‘(C) PSYCHOLOGICAL
DISABILITY
DE-
FINED.—The term ‘psychological disability’ 
means any diagnosable clinical condition on 
Axis I or Axis II of the current edition of the 
American Psychiatric Association’s Diagnostic 
and Statistical Manual of Mental Disorders 
which is of a severity that requires substantial 
supervision or residence in a psychiatric hos-
pital or similar residential facility approved by 
the Secretary. 
‘‘(D) MENTAL RETARDATION DEFINED.— 
The term ‘mental retardation’ means any devel-
opmental disability (as defined in section 102 of 
the Developmental Disabilities Assistance and 
Bill of Rights Act (42 U.S.C. 15002)) which is 
of a severity that requires substantial super-
vision or residence in an intermediate care facil-
ity for the mentally retarded, or similar residen-
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
tial facility approved by the Secretary of Health 
and Human Services. 
‘‘(2) ELIGIBLE CAREGIVER.— 
‘‘(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 152(d)(1)(B) 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— 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
‘‘(I) the requirements of subpara-
graph (B) are met with respect to the 
individual in lieu of the support test 
of 
section 
152(c)(1)(D) 
or 
152(d)(1)(C), as the case may be, and 
‘‘(II) in the case of an individual 
who is not a qualifying child (as de-
fined in section 152(d)) for the tax-
able year, the requirements of clause 
(iv) are met with respect to the indi-
vidual. 
‘‘(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 for the taxable year 
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. 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
‘‘(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) 
files a written declaration (in such form 
and manner as the Secretary may pre-
scribe) that such individual will not claim 
such applicable individual for the credit 
under this section. 
‘‘(ii) NO AGREEMENT.—If each indi-
vidual required to file a written declaration 
under clause (i) does not do so, the indi-
vidual with the highest modified adjusted 
gross income (as defined in subsection 
(b)(2)) shall be treated as the eligible care-
giver. 
‘‘(iii) MARRIED
INDIVIDUALS
FILING 
SEPARATELY.—In the case of married indi-
viduals filing separately, the determination 
under this subparagraph as to whether the 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
husband or wife is the eligible caregiver 
shall be made under the rules of clause (ii) 
(whether or not one of them has filed a 
written declaration under clause (i)). 
‘‘(d) IDENTIFICATION
REQUIREMENT.—No credit 
shall be allowed under this section to a taxpayer with re-
spect to any applicable individual unless the taxpayer in-
cludes the name and taxpayer identification number of 
such individual, and the identification number of the phy-
sician or licensed independent practitioner licensed by the 
State to render relevant diagnosis certifying such indi-
vidual, on the return of tax for the taxable year. 
‘‘(e) TAXABLE YEAR MUST BE FULL TAXABLE 
YEAR.—Except in the case of a taxable year closed by rea-
son of the death of the taxpayer, no credit shall be allow-
able under this section in the case of a taxable year cov-
ering a period of less than 12 months. 
‘‘(f) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2010.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) Paragraph (2) of section 6213(g) of such 
Code (relating to mathematical or clerical error) is 
amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (L), by striking the period at the 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
end of subparagraph (M) and inserting ‘‘, and’’, 
and by inserting after subparagraph (M) the 
following new subparagraph: 
‘‘(N) an omission of a correct TIN or phy-
sician identification required under section 
36(d) (relating to family care credit) to be in-
cluded on a return.’’, and 
(B) in the matter preceding clause (i) of 
subparagraph (L), by striking ‘‘or 32’’ and in-
serting ‘‘32, or 36’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of such Code is 
amended by striking the item relating to section 36 
and inserting the following: 
‘‘Sec. 36. Family care credit. 
‘‘Sec. 37 Overpayments of tax.’’. 
(c) 
APPROPRIATIONS
FOR
REFUND.—Section 
1324(b)(2) of title 31, United States Code, is amended 
by striking ‘‘or 53(e)’’ and inserting ‘‘, 53(e), or 36’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 3. MODIFICATION OF DEPENDENT CARE CREDIT. 
(a) CREDIT ALLOWED FOR COSTS INCURRED TO 
CARE FOR PARENT AND GRANDPARENTS WHO DO NOT 
LIVE WITH TAXPAYER.—Paragraph (1) of section 21(b) 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
of the Internal Revenue Code of 1986 (defining qualifying 
individual) is amended by striking ‘‘or’’ at the end of sub-
paragraph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, or’’, and by adding at the 
end the following new subparagraph: 
‘‘(D) in the case of taxable years beginning 
in 2009 and 2010, an individual described in 
subparagraph (B) (determined without regard 
to whether such person has the same principal 
place of abode as the taxpayer for any part of 
such taxable year) who is the taxpayer’s mother 
or father (or an ancestor of either).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 4. DEPENDENT CARE ASSISTANCE PROGRAM EXCLU-
SION LIMITATION TO BE APPLIED WITH RE-
SPECT TO EACH QUALIFYING INDIVIDUAL. 
(a) IN GENERAL.—Subsection (e) of section 129 of 
the Internal Revenue Code of 1986 (relating to definitions 
and special rules) is amended by adding at the end the 
following new paragraph: 
‘‘(10) INCREASED EXCLUSION LIMITATION FOR 
2009 AND 2010.— 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
‘‘(A) IN GENERAL.—In the case of taxable 
years beginning in 2009 and 2010, subsection 
(a)(2)(A) shall be applied by substituting ‘pro-
vided during a taxable year for each qualifying 
individual with respect to the taxpayer’ for ‘pro-
vided during a taxable year’. For purposes of 
the preceding sentence, not more than 4 indi-
viduals may be treated as qualifying individuals 
at any one time. 
‘‘(B) 
IDENTIFYING
INFORMATION
RE-
QUIRED WITH RESPECT TO QUALIFYING INDI-
VIDUALS.—No amount paid or incurred by an 
employer for dependent care assistance provided 
to an employee with respect to a qualifying in-
dividual shall be excluded from the gross in-
come of such employee by application of sub-
paragraph (A) unless the TIN of such indi-
vidual is included on the return claiming the 
credit.’’. 
(b) CONFORMING AMENDMENT.—Subsection (c) of 
section 21 of such Code (relating to dollar limit on amount 
creditable) is amended by inserting ‘‘(but not below zero)’’ 
after ‘‘shall be reduced’’. 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
Æ 
VerDate Aug 31 2005 
04:27 Jul 01, 2008
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6301
E:\BILLS\H6390.IH
H6390
smartinez on PROD1PC64 with BILLS