S 2267
110th CONGRESS
1st Session
S. 2267
To amend the Internal Revenue Code of 1986 to provide an income
tax credit for eldercare expenses.
IN THE SENATE OF THE UNITED STATES
October 31, 2007
Ms. KLOBUCHAR (for herself and Ms. MIKULSKI) introduced the following
bill; which was read twice and referred to the Committee on Finance
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 Representatives 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 2007'.
SEC. 2. CREDIT FOR ELDERCARE EXPENSES.
(a) In General- Subpart A of part IV of subchapter A of chapter 1 of
the Internal Revenue Code of 1986 is amended by inserting after section
25D the following new section:
`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 (as defined in subsection (b)(1))
with respect to such individual, there shall be allowed 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 (as defined
in subsection (b)(2)) paid by such individual during the taxable year.
`(2) APPLICABLE PERCENTAGE DEFINED- 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 income for the taxable year
exceeds $120,000.
`(b) Definitions of Qualifying Individual and Eldercare Expenses- For
purposes of this section--
`(1) QUALIFYING INDIVIDUAL- The term `qualifying individual' means
the father or mother of the taxpayer or an ancestor of such father
or mother, who requires assistance with activities of daily living.
`(A) IN GENERAL- The term `eldercare expenses' means amounts paid
for expenses for the care of a qualifying individual.
`(B) CARE CENTERS- Eldercare expenses described in subparagraph
(A) which are incurred for services provided outside the taxpayer's
household by a care center (as defined in subparagraph (C)) shall
be taken into account only if such center complies with all applicable
laws and regulations of a State or unit of local government.
`(C) CARE CENTER DEFINED- For purposes of this paragraph, the term
`care center' means any facility which--
`(i) provides care for more than six 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 Limit on Amount Creditable-
`(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.
`(d) Special Rules- For purposes of this section--
`(1) PAYMENTS TO RELATED INDIVIDUALS- No credit shall be allowed under
subsection (a) for any amount paid to an individual--
`(A) with respect to whom, for the taxable year, a deduction under
section 151(c) (relating to deduction for personal exemptions for
dependents) is allowable either to the taxpayer or his spouse, or
`(B) who is a child of the taxpayer (within the meaning of section
152(f)(1)) who has not attained the age of 19 at the close of the
taxable year.
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--
`(A) the name, address, and taxpayer identification number of such
person are included on the return claiming the credit, or
`(B) if such person is an organization described 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 taxpayer exercised due diligence in attempting
to provide the information so required.
`(3) IDENTIFYING INFORMATION REQUIRED WITH RESPECT TO QUALIFYING INDIVIDUALS-
No credit shall be allowed under subsection (a) with respect to any
qualifying individual unless the taxpayer identification number of
such individual is included on the return claiming the credit.
`(4) MARRIED COUPLES MUST FILE JOINT RETURN- Rules similar to the
rules of paragraphs (2) and (3) of section 21(e) shall apply.
`(e) Denial of Double Benefit- No credit shall be allowed under subsection
(a) for any amount with respect to which a credit is allowed under section
21.
`(f) Regulations- The Secretary shall prescribe such regulations as
may be necessary to carry out the purposes of 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 inserting 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 (relating
to exclusion of amounts allowed for care of certain dependents) 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 (relating to mathematical or clerical
error) is amended--
(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).
(d) Effective Date- The amendments made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 3. EXTENSION AND INCREASE IN FUNDING FOR THE NATIONAL FAMILY
CAREGIVER SUPPORT PROGRAM.
Section 303(e)(2) of the Older Americans Act of 1965 (42 U.S.C. 3023(e)(2)),
as amended by the Older Americans Act Amendments of 2006, is further
amended by striking `$166,500,000 for fiscal year 2008' and all that
follows through `for fiscal year 2011' and inserting `$250,000,000 for
each of fiscal years 2008, 2009, 2010, and 2011.'.
SEC. 4. NATIONAL RESOURCE CENTER ON FAMILY CAREGIVING.
(a) In General- Part A of title IV of the Older Americans Act of 1965
(42 U.S.C. 3032 et seq.) is amended by adding at the end the following:
`SEC. 423. NATIONAL RESOURCE CENTER ON FAMILY CAREGIVING.
`(a) Definitions- In this section:
`(1) PUBLIC OR PRIVATE NONPROFIT ENTITY- The term `public or private
nonprofit entity' means--
`(A) a State, a political subdivision of a State, or an agency or
instrumentality of such a State or political subdivision; or
`(B) a nonprofit entity that is described in section 501(c)(3) of
the Internal Revenue Code of 1986 and exempt from taxation under
section 501(a) of such Code.
`(2) STATE- The term `State' means 1 of the 50 States.
`(b) Establishment- The Secretary of Health and Human Services shall
award a grant to or enter into a cooperative agreement with a public
or private nonprofit entity to establish a National Resource Center
on Family Caregiving (referred to in this section as the `Center').
`(c) Purposes of National Resource Center- The Center shall--
`(1) identify, develop, and disseminate information on best practices
for and evidence-based models of family caregiver support programs;
`(2) provide timely information on policy and program updates relating
to family caregivers;
`(3) partner with related organizations to disseminate practical strategies
and tools to support families in their caregiving roles;
`(4) convene educational programs and web-based seminars on family
caregiver issues and program development; and
`(5) provide a comprehensive Internet website with a national searchable
database on family caregiver programs and resources in the States.
`(d) Authorization- There is authorized to be appropriated to carry
out this section $12,000,000 for the period of fiscal years 2008 through
2011.'.
(b) Technical Amendments-
(1) Section 431(a) of such Act (42 U.S.C. 3033(a)) is amended by striking
`or contract' the first place it appears and inserting `or contract
(including a cooperative agreement)'.
(2) Section 432(a) of such Act (42 U.S.C. 3033a(a)) is amended by
striking `and contracts' and inserting `and contracts (including cooperative
agreements)'.
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