Americans Giving Care to Elders (AGE) Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 3689 To amend the Internal Revenue Code of 1986 to provide an income tax credit for eldercare expenses. IN THE HOUSE OF REPRESENTATIVES JUNE 4, 2021 Mrs. AXNE (for herself, Ms. SCHAKOWSKY, and Mr. MCKINLEY) 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 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 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS 2 •HR 3689 IH ‘‘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 60, 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 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS 3 •HR 3689 IH ‘‘(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, 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, or 10 ‘‘(v) a family member or other indi- 11 vidual who has a significant relationship 12 with the taxpayer or the taxpayer’s spouse, 13 and to whom such taxpayer or spouse pro- 14 vides a broad range of assistance with re- 15 spect to a chronic or other health condi- 16 tion, disability, or functional limitation. 17 ‘‘(2) ELDERCARE EXPENSES.— 18 ‘‘(A) IN GENERAL.—The term ‘eldercare 19 expenses’ means the following amounts paid for 20 expenses relating to the care of a qualifying in- 21 dividual: 22 ‘‘(i) Medical care (as defined in sec- 23 tion 213(d)(1), without regard to subpara- 24 graph D thereof). 25 VerDate Sep 11 2014 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS 4 •HR 3689 IH ‘‘(ii) Lodging away from home in ac- 1 cordance with section 213(d)(2). 2 ‘‘(iii) Adult day services. 3 ‘‘(iv) Personal care. 4 ‘‘(v) Respite care. 5 ‘‘(vi) Assistive technologies and de- 6 vices (including remote health monitoring). 7 ‘‘(vii) Environmental modifications 8 (including home modifications). 9 ‘‘(viii) Counseling or training for a 10 caregiver. 11 ‘‘(B) DEFINITIONS.—For purposes of sub- 12 paragraph (A)— 13 ‘‘(i) ADULT DAY SERVICES.—The 14 term ‘adult day services’ means care pro- 15 vided for adults with functional or cog- 16 nitive impairments through a structured, 17 community-based group program which 18 provides health, social, and other related 19 support services on a less than 24-hour 20 basis. 21 ‘‘(ii) PERSONAL CARE.—The term 22 ‘personal care’ means reasonable personal 23 care services provided to assist with daily 24 living which do not require the skills of 25 VerDate Sep 11 2014 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS 5 •HR 3689 IH qualified technical or professional per- 1 sonnel. 2 ‘‘(iii) RESPITE CARE.—The term ‘res- 3 pite care’ means planned or emergency 4 care intended to provide temporary relief 5 to a caregiver. 6 ‘‘(C) CARE CENTERS.— 7 ‘‘(i) IN GENERAL.—Eldercare ex- 8 penses described in subparagraph (A) 9 which are incurred for services provided 10 outside the taxpayer’s household by a care 11 center shall be taken into account only if 12 such center complies with all applicable 13 laws and regulations of a State or unit of 14 local government. 15 ‘‘(ii) CARE CENTER.—For purposes of 16 this subparagraph, the term ‘care center’ 17 means any facility which— 18 ‘‘(I) provides care for more than 19 6 individuals, and 20 ‘‘(II) receives a fee, payment, or 21 grant for providing services for any of 22 the individuals (regardless of whether 23 such facility is operated for profit). 24 ‘‘(c) DOLLAR LIMITATION.— 25 VerDate Sep 11 2014 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS 6 •HR 3689 IH ‘‘(1) IN GENERAL.—The amount of the 1 eldercare expenses incurred during any taxable year 2 which may be taken into account under subsection 3 (a) shall not exceed $6,000. 4 ‘‘(2) COORDINATION WITH DEPENDENT CARE 5 ASSISTANCE EXCLUSION.—The dollar amount in 6 paragraph (1) shall be reduced by the aggregate 7 amount excluded from gross income under section 8 129 for the taxable year, if any. 9 ‘‘(d) SPECIAL RULES.—For purposes of this sec- 10 tion— 11 ‘‘(1) PAYMENTS TO RELATED INDIVIDUALS.— 12 No credit shall be allowed under subsection (a) for 13 any amount paid to an individual with respect to 14 whom, for the taxable year, a deduction under sec- 15 tion 151(c) is allowable either to the taxpayer or the 16 taxpayer’s spouse. For purposes of this paragraph, 17 the term ‘taxable year’ means the taxable year of the 18 taxpayer in which the service is performed. 19 ‘‘(2) IDENTIFYING INFORMATION REQUIRED 20 WITH RESPECT TO SERVICE PROVIDER.—No credit 21 shall be allowed under subsection (a) for any amount 22 paid to any person unless— 23 VerDate Sep 11 2014 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS 7 •HR 3689 IH ‘‘(A) the name, address, and taxpayer 1 identification number of such person are in- 2 cluded on the return claiming the credit, or 3 ‘‘(B) if such person is an organization de- 4 scribed in section 501(c)(3) and exempt from 5 tax under section 501(a), the name and address 6 of such person are included on the return 7 claiming the credit. 8 In the case of a failure to provide the information 9 required under the preceding sentence, the preceding 10 sentence shall not apply if it is shown that the tax- 11 payer exercised due diligence in attempting to pro- 12 vide the information so required. 13 ‘‘(3) IDENTIFYING INFORMATION REQUIRED 14 WITH RESPECT TO QUALIFYING INDIVIDUALS.—No 15 credit shall be allowed under subsection (a) with re- 16 spect to any qualifying individual unless the tax- 17 payer identification number of such individual is in- 18 cluded on the return claiming the credit. 19 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 20 be allowed under subsection (a) for any amount with re- 21 spect to which a credit is allowed under section 21. 22 ‘‘(f) REGULATIONS AND GUIDANCE.—Not later than 23 one year after the date of the enactment of this section, 24 the Secretary shall promulgate such regulations or guid- 25 VerDate Sep 11 2014 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS 8 •HR 3689 IH ance as are necessary to carry out this section and to pre- 1 vent fraud and abuse with respect to the credit under this 2 section.’’. 3 (b) CLERICAL AMENDMENT.—The table of sections 4 for subpart A of part IV of subchapter A of chapter 1 5 of the Internal Revenue Code of 1986 is amended by in- 6 serting after the item relating to section 25D the following 7 new item: 8 ‘‘Sec. 25E. Expenses for eldercare.’’. (c) CONFORMING AMENDMENTS.— 9 (1) Section 213(e) of the Internal Revenue 10 Code of 1986 is amended— 11 (A) by inserting ‘‘or section 25E’’ after 12 ‘‘section 21’’, and 13 (B) by inserting ‘‘AND ELDERS’’ after 14 ‘‘CERTAIN DEPENDENTS’’ in the heading. 15 (2) Section 6213(g)(2) of such Code is amend- 16 ed— 17 (A) by inserting ‘‘, section 25E (relating to 18 expenses for care of elders),’’ after ‘‘(relating to 19 expenses for household and dependent care 20 services necessary for gainful employment)’’ in 21 subparagraph (H), and 22 (B) by inserting ‘‘, 25E’’ after ‘‘24’’ in 23 subparagraph (L). 24 VerDate Sep 11 2014 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS 9 •HR 3689 IH (d) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years beginning after 2 the date of the enactment of this Act. 3 Æ VerDate Sep 11 2014 17:17 Jun 29, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H3689.IH H3689 lotter on DSK11XQN23PROD with BILLS