Americans Giving Care to Elders (AGE) Act of 2021

II 117TH CONGRESS 1ST SESSION S. 234 To amend the Internal Revenue Code of 1986 to provide an income tax credit for eldercare expenses. IN THE SENATE OF THE UNITED STATES FEBRUARY 4, 2021 Ms. KLOBUCHAR (for herself, Mrs. FEINSTEIN, and Ms. SMITH) 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Americans Giving Care 4 to Elders (AGE) Act of 2021’’. 5 SEC. 2. CREDIT FOR ELDERCARE EXPENSES. 6 (a) IN GENERAL.—Subpart A of part IV of sub- 7 chapter A of chapter 1 of the Internal Revenue Code of 8 1986 is amended by inserting after section 25D the fol- 9 lowing new section: 10 VerDate Sep 11 2014 19:28 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S234.IS S234 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 234 IS ‘‘SEC. 25E. EXPENSES FOR ELDERCARE. 1 ‘‘(a) ALLOWANCE OF CREDIT.— 2 ‘‘(1) IN GENERAL.—In the case of an individual 3 for which there are 1 or more qualifying individuals 4 with respect to such individual, there shall be al- 5 lowed as a credit against the tax imposed by this 6 chapter for the taxable year an amount equal to the 7 applicable percentage of the eldercare expenses paid 8 by such individual during the taxable year. 9 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 10 of paragraph (1), the term ‘applicable percentage’ 11 means 20 percent, reduced (but not below zero) by 12 1 percentage point for each $4,000 (or fraction 13 thereof) by which the taxpayer’s adjusted gross in- 14 come for the taxable year exceeds $120,000. 15 ‘‘(b) DEFINITIONS.—For purposes of this section— 16 ‘‘(1) QUALIFYING INDIVIDUAL.—The term 17 ‘qualifying individual’ means an individual— 18 ‘‘(A) who has attained age 65, 19 ‘‘(B) who requires assistance with activities 20 of daily living, and 21 ‘‘(C) who is, with respect to the taxpayer 22 or the taxpayer’s spouse— 23 ‘‘(i) the father or mother or an ances- 24 tor of such father or mother, 25 VerDate Sep 11 2014 19:28 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S234.IS S234 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 234 IS ‘‘(ii) the father-in-law or mother-in- 1 law or an ancestor of such father-in-law or 2 mother-in-law, 3 ‘‘(iii) the stepfather or stepmother or 4 an ancestor of such stepfather or step- 5 mother, or 6 ‘‘(iv) any other person who, for the 7 taxable year, has the same principal place 8 of abode as the taxpayer and is a member 9 of the household of the taxpayer. 10 ‘‘(2) ELDERCARE EXPENSES.— 11 ‘‘(A) IN GENERAL.—The term ‘eldercare 12 expenses’ means the following amounts paid for 13 expenses relating to the care of a qualifying in- 14 dividual: 15 ‘‘(i) Medical care (as defined in sec- 16 tion 213(d)(1), without regard to subpara- 17 graph D thereof). 18 ‘‘(ii) Lodging away from home in ac- 19 cordance with section 213(d)(2). 20 ‘‘(iii) Adult day services. 21 ‘‘(iv) Personal care. 22 ‘‘(v) Respite care. 23 ‘‘(vi) Assistive technologies and de- 24 vices (including remote health monitoring). 25 VerDate Sep 11 2014 19:28 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S234.IS S234 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 234 IS ‘‘(vii) Environmental modifications 1 (including home modifications). 2 ‘‘(viii) Counseling or training for a 3 caregiver. 4 ‘‘(B) DEFINITIONS.—For purposes of sub- 5 paragraph (A)— 6 ‘‘(i) ADULT DAY SERVICES.—The 7 term ‘adult day services’ means care pro- 8 vided for adults with functional or cog- 9 nitive impairments through a structured, 10 community-based group program which 11 provides health, social, and other related 12 support services on a less than 24-hour 13 basis. 14 ‘‘(ii) PERSONAL CARE.—The term 15 ‘personal care’ means reasonable personal 16 care services provided to assist with daily 17 living which do not require the skills of 18 qualified technical or professional per- 19 sonnel. 20 ‘‘(iii) RESPITE CARE.—The term ‘res- 21 pite care’ means planned or emergency 22 care intended to provide temporary relief 23 to a caregiver. 24 ‘‘(C) CARE CENTERS.— 25 VerDate Sep 11 2014 19:28 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S234.IS S234 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 234 IS ‘‘(i) IN GENERAL.—Eldercare ex- 1 penses described in subparagraph (A) 2 which are incurred for services provided 3 outside the taxpayer’s household by a care 4 center shall be taken into account only if 5 such center complies with all applicable 6 laws and regulations of a State or unit of 7 local government. 8 ‘‘(ii) CARE CENTER.—For purposes of 9 this subparagraph, the term ‘care center’ 10 means any facility which— 11 ‘‘(I) provides care for more than 12 6 individuals, and 13 ‘‘(II) receives a fee, payment, or 14 grant for providing services for any of 15 the individuals (regardless of whether 16 such facility is operated for profit). 17 ‘‘(c) DOLLAR LIMITATION.— 18 ‘‘(1) IN GENERAL.—The amount of the 19 eldercare expenses incurred during any taxable year 20 which may be taken into account under subsection 21 (a) shall not exceed $6,000. 22 ‘‘(2) COORDINATION WITH DEPENDENT CARE 23 ASSISTANCE EXCLUSION.—The dollar amount in 24 paragraph (1) shall be reduced by the aggregate 25 VerDate Sep 11 2014 19:28 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S234.IS S234 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 234 IS amount excluded from gross income under section 1 129 for the taxable year, if any. 2 ‘‘(d) SPECIAL RULES.—For purposes of this sec- 3 tion— 4 ‘‘(1) PAYMENTS TO RELATED INDIVIDUALS.— 5 No credit shall be allowed under subsection (a) for 6 any amount paid to an individual with respect to 7 whom, for the taxable year, a deduction under sec- 8 tion 151(c) is allowable either to the taxpayer or the 9 taxpayer’s spouse. For purposes of this paragraph, 10 the term ‘taxable year’ means the taxable year of the 11 taxpayer in which the service is performed. 12 ‘‘(2) IDENTIFYING INFORMATION REQUIRED 13 WITH RESPECT TO SERVICE PROVIDER.—No credit 14 shall be allowed under subsection (a) for any amount 15 paid to any person unless— 16 ‘‘(A) the name, address, and taxpayer 17 identification number of such person are in- 18 cluded on the return claiming the credit, or 19 ‘‘(B) if such person is an organization de- 20 scribed in section 501(c)(3) and exempt from 21 tax under section 501(a), the name and address 22 of such person are included on the return 23 claiming the credit. 24 VerDate Sep 11 2014 19:28 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S234.IS S234 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 234 IS In the case of a failure to provide the information 1 required under the preceding sentence, the preceding 2 sentence shall not apply if it is shown that the tax- 3 payer exercised due diligence in attempting to pro- 4 vide the information so required. 5 ‘‘(3) IDENTIFYING INFORMATION REQUIRED 6 WITH RESPECT TO QUALIFYING INDIVIDUALS.—No 7 credit shall be allowed under subsection (a) with re- 8 spect to any qualifying individual unless the tax- 9 payer identification number of such individual is in- 10 cluded on the return claiming the credit. 11 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 12 be allowed under subsection (a) for any amount with re- 13 spect to which a credit is allowed under section 21. 14 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 15 such regulations as may be necessary to carry out the pur- 16 poses of this section.’’. 17 (b) CLERICAL AMENDMENT.—The table of sections 18 for subpart A of part IV of subchapter A of chapter 1 19 of the Internal Revenue Code of 1986 is amended by in- 20 serting after the item relating to section 25D the following 21 new item: 22 ‘‘Sec. 25E. Expenses for eldercare.’’. (c) CONFORMING AMENDMENTS.— 23 (1) Section 213(e) of the Internal Revenue 24 Code of 1986 is amended— 25 VerDate Sep 11 2014 19:28 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S234.IS S234 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 234 IS (A) by inserting ‘‘or section 25E’’ after 1 ‘‘section 21’’, and 2 (B) by inserting ‘‘AND ELDERS’’ after 3 ‘‘CERTAIN DEPENDENTS’’ in the heading. 4 (2) Section 6213(g)(2) of such Code is amend- 5 ed— 6 (A) by inserting ‘‘, section 25E (relating to 7 expenses for care of elders),’’ after ‘‘(relating to 8 expenses for household and dependent care 9 services necessary for gainful employment)’’ in 10 subparagraph (H), and 11 (B) by inserting ‘‘, 25E’’ after ‘‘24’’ in 12 subparagraph (L). 13 (d) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to taxable years beginning after 15 the date of the enactment of this Act. 16 Æ VerDate Sep 11 2014 19:28 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S234.IS S234 pamtmann on DSKBC07HB2PROD with BILLS