HR 6237
110th CONGRESS
2d Session
H. R. 6237
To amend the Internal Revenue Code of 1986 to provide for a credit
for long-term care insurance premiums and for taxpayers with long-term care
needs.
IN THE HOUSE OF REPRESENTATIVES
June 11, 2008
Mr. COURTNEY 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 for a credit
for long-term care insurance premiums and for taxpayers with long-term care
needs.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Tax Relief for Long-Term Care Act of 2008'.
SEC. 2. CREDIT FOR LONG-TERM CARE INSURANCE PREMIUMS AND FOR TAXPAYERS WITH
LONG-TERM CARE NEEDS.
(a) In General- Subpart A of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to nonrefundable personal credits) is amended
by inserting after section 25D the following new section:
`SEC. 25E. CREDIT FOR LONG-TERM CARE INSURANCE PREMIUMS AND FOR TAXPAYERS
WITH LONG-TERM CARE NEEDS.
`(a) Allowance of Credit-
`(1) IN GENERAL- There shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the sum of--
`(A) eligible long-term care premiums (as defined in section 213(d)(10))
paid during the taxable year for coverage for the taxpayer and the taxpayer's
spouse and dependents under a qualified long-term care insurance contract
(as defined in section 7702B(b)); and
`(B) the long-term care amount multiplied by the number of applicable
individuals with respect to whom the taxpayer is an eligible caregiver
for the taxable year.
`(2) LONG-TERM CARE AMOUNT- For purposes of paragraph (1), the long-term
care amount shall be determined in accordance with the following table:
`For taxable years
The long-term
beginning in calender year--
care amount is--
2009
--$1,000
2010
--$1,500
2011
--$2,000
2012
--$2,500
2013 or thereafter
--$3,000.
`(b) Limitation Based on Adjusted Gross Income-
`(1) 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 taxpayer's modified adjusted gross income exceeds
the threshold amount. For purposes of the preceding sentence, the term `modified
adjusted gross income' means adjusted gross income 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) $150,000 in the case of a joint return, and
`(B) $75,000 in any other case.
`(3) COORDINATION- For purposes of this section, the reduction under paragraph
(1) shall be treated as first being a reduction in the long-term care amount
to the extent thereof.
`(4) INDEXING- In the case of any taxable year beginning in a calendar year
after 2009, each dollar amount contained in paragraph (2) shall be increased
by an amount equal to the product of--
`(A) such dollar amount, and
`(B) the medical care cost adjustment determined under section 213(d)(10)(B)(ii)
for the calendar year in which the taxable year begins, determined by
substituting `August 2008' for `August 1996' in subclause (II) thereof.
If any increase determined under the preceding sentence is not a multiple
of $50, such increase shall be rounded to the next lowest multiple of $50.
`(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, before the
due date for filing the return of tax for the taxable year (without extensions),
by a physician (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.
Notwithstanding the preceding sentence, a certification shall not be treated
as valid unless it is made within the 39 1/2 month period ending on such
due date (or such other period as the Secretary prescribes).
`(B) INDIVIDUALS WITH LONG-TERM CARE NEEDS- An individual is described
in this subparagraph if the individual meets any of the following requirements:
`(i) The individual is at least 6 years of age and--
`(I) is unable to perform (without substantial assistance from another
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 supervision to protect such individual
from threats to health and safety due to severe cognitive impairment
and is unable to preform, without reminding or cuing assistance, at
least 1 activity of daily living (as so defined) or to the extent
provided in regulations prescribed by the Secretary (in consultation
with the Secretary of Health and Human Services), is unable to engage
in age appropriate activities.
`(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 another 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 medical equipment by reason of a severe health condition or
requires a skilled practitioner trained to address the individual's
condition to be available if the individual's parents or guardians are
absent.
`(A) IN GENERAL- A taxpayer shall be treated as an eligible caregiver
for any taxable year with respect to the following individuals:
`(ii) The taxpayer's spouse.
`(iii) An individual with respect to whom the taxpayer is allowed a
deduction under section 151(c) for the taxable year.
`(iv) An individual who would be described in clause (iii) for the taxable
year if the requirements of subparagraph (B) are met with respect to
the individual in lieu of the support test under subsection (c)(1)(D)
or (d)(1)(C) of section 152.
`(B) RESIDENCY TEST- The requirements of this subparagraph are met if
an individual 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 taxpayer or the taxpayer's spouse, is a member of the taxpayer's
household for over half the taxable year, or
`(ii) in the case of any other individual, 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 individual is an eligible caregiver
with respect 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 prescribe) that such individual will not claim such applicable individual
for the credit under this section.
`(ii) NO AGREEMENT- If each individual required under clause (i) to
file a written declaration under clause (i) does not do so, the individual
with the highest adjusted gross income shall be treated as the eligible
caregiver.
`(iii) MARRIED INDIVIDUALS FILING SEPARATELY- In the case of married
individuals filing separately, the determination under this subparagraph
as to whether the 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 respect to any applicable individual unless the taxpayer
includes the name and taxpayer identification number of such individual, and
the identification number of the physician certifying such individual, 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 reason of the death of the taxpayer, no credit shall be allowable
under this section in the case of a taxable year covering a period of less
than 12 months.
`(f) Coordination With Other Deductions- Any amount paid by a taxpayer for
any qualified long-term care insurance contract to which subsection (a) applies
shall not be taken into account in computing the amount allowable to the taxpayer
as a deduction under section 162(l) or 213(a).'.
(b) Conforming Amendments-
(1) Section 6213(g)(2) of such Code is amended by striking `and' at the
end of subparagraph (L), by striking the period at the 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 physician identification required
under section 25E(d) (relating to credit for taxpayers with long-term
care needs) to be included on a return.'.
(2) The table of sections for subpart A of part IV of subchapter A of chapter
1 of such Code is amended by inserting after the item relating to section
25D the following new item:
`Sec. 25E. Credit for long-term care insurance premiums and for taxpayers
with long-term care needs.'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.
END
