119-hr2036

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2036 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2036

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
 working family caregivers.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 11, 2025

Mr. Carey (for himself and Ms. Sanchez) 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 tax credit for 
 working family caregivers.

 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 ``Credit for Caring Act of 2025''.

SEC. 2. CREDIT FOR WORKING FAMILY CAREGIVERS.

    (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 25E the following new section:

``

SEC. 25F. WORKING FAMILY CAREGIVERS.

 ``

    (a) Allowance of Credit.--In the case of an eligible caregiver, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to 30 percent of the 
qualified expenses paid by the taxpayer during the taxable year to the 
extent that such expenses exceed $2,000.
 ``

    (b) Limitation.--
 ``

    (1) In general.--The amount allowed as a credit under 
 subsection

    (a) for the taxable year shall not exceed $5,000.
 ``

    (2) Adjustment for inflation.--In the case of any taxable 
 year beginning after 2025, the dollar amount contained in 
 paragraph

    (1) 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 `2024' for `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) Eligible Caregiver.--For purposes of this section, the term 
`eligible caregiver' means an individual who--
 ``

    (1) during the taxable year pays or incurs qualified 
 expenses in connection with providing care for a qualified care 
 recipient, and
 ``

    (2) has earned income (as defined in 

section 32
            (c) (2) ) 
 for the taxable year in excess of $7,500.
 ``
            (d) Qualified Care Recipient.--For purposes of this section--
 ``

    (1) In general.--The term `qualified care recipient' 
 means, with respect to any taxable year, any individual who--
 ``
        (A) is the spouse of the eligible caregiver, or 
 any other person who bears a relationship to the 
 eligible caregiver described in any of subparagraphs
        (A) through
        (H) of 

section 152
            (d) (2) , and
 ``
        (B) has been certified, before the due date for 
 filing the return of tax for the taxable year, by a 
 licensed health care practitioner (as defined in 
 

section 7702B
            (c) (4) ) as being an individual with long-
 term care needs described in paragraph

    (3) for a 
 period--
 ``
            (i) which is at least 180 consecutive 
 days, and
 ``
            (ii) a portion of which occurs within the 
 taxable year.
 ``

    (2) Period for making certification.--Notwithstanding 
 paragraph

    (1)
        (B) , 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).
 ``

    (3) Individuals with long-term care needs.--An individual 
 is described in this paragraph if the individual meets any of 
 the following requirements:
 ``
        (A) The individual is at least 6 years of age 
 and--
 ``
            (i) is unable to perform (without 
 substantial assistance from another individual) 
 at least 2 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 perform, 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.
 ``
        (B) 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.
 ``
            (C) 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.
 ``

    (e) Qualified Expenses.--For purposes of this section--
 ``

    (1) In general.--Subject to paragraph

    (4) , the term 
 `qualified expenses' means expenditures for goods, services, 
 and supports that--
 ``
        (A) assist a qualified care recipient with 
 accomplishing activities of daily living (as defined in 
 

section 7702B
            (c) (2)
        (B) ) and instrumental activities of 
 daily living (as defined in 

section 1915

    (k)

    (6)
        (F) of 
 the Social Security Act (42 U.S.C. 1396n

    (k)

    (6)
        (F) )), 
 and
 ``
        (B) are provided solely for use by such qualified 
 care recipient.
 ``

    (2) Adjustment for other tax benefits.--The amount of 
 qualified expenses otherwise taken into account under paragraph

    (1) with respect to an individual shall be reduced by the sum 
 of any amounts paid for the benefit of such individual for the 
 taxable year which are--
 ``
        (A) taken into account under 

section 21 or 213, 
 or
 ``
        (B) excluded from gross income under 

section 129, 
 223

    (f) , or 529A
            (c) (1)
        (B) .
 ``

    (3) Goods, services, and supports.--For purposes of 
 paragraph

    (1) , goods, services, and supports (as defined by the 
 Secretary) shall include--
 ``
        (A) human assistance, supervision, cuing and 
 standby assistance,
 ``
        (B) assistive technologies and devices (including 
 remote health monitoring),
 ``
            (C) environmental modifications (including home 
 modifications),
 ``
            (D) health maintenance tasks (such as medication 
 management),
 ``
        (E) information,
 ``
        (F) transportation of the qualified care 
 recipient,
 ``
        (G) non-health items (such as incontinence 
 supplies), and
 ``
        (H) coordination of and services for people who 
 live in their own home, a residential setting, or a 
 nursing facility, as well as the cost of care in these 
 or other locations.
 ``

    (4) Qualified expenses for eligible caregivers.--For 
 purposes of paragraph

    (1) , the following shall be treated as 
 qualified expenses if paid or incurred by an eligible 
 caregiver:
 ``
        (A) Expenditures for respite care for a qualified 
 care recipient.
 ``
        (B) Expenditures for counseling, support groups, 
 or training relating to caring for a qualified care 
 recipient.
 ``
            (C) Lost wages for unpaid time off due to caring 
 for a qualified care recipient as verified by an 
 employer.
 ``
            (D) Travel costs of the eligible caregiver 
 related to caring for a qualified care recipient.
 ``
        (E) Expenditures for technologies, as determined 
 by the Secretary, that assist an eligible caregiver in 
 providing care for a qualified care recipient.
 ``

    (5) Human assistance.--The term `human assistance' 
 includes the costs of a direct care worker.
 ``

    (6) Documentation.--An expense shall not be taken into 
 account under this section unless the eligible caregiver 
 substantiates such expense under such regulations or guidance 
 as the Secretary shall provide.
 ``

    (7) Mileage rate.--For purposes of this section, the 
 mileage rate for the use of a passenger automobile shall be the 
 standard mileage rate used to calculate the deductible costs of 
 operating an automobile for medical purposes. Such rate may be 
 used in lieu of actual automobile-related travel expenses.
 ``

    (8) Coordination with able accounts.--Qualified expenses 
 for a taxable year shall not include contributions to an ABLE 
 account (as defined in 

section 529A).
 ``

    (f) Phase Out Based on Adjusted Gross Income.--For purposes of 
this section--
 ``

    (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.
 ``

    (2) Modified adjusted gross income.--The term `modified 
 adjusted gross income' means adjusted gross income increased by 
 any amount excluded from gross income under 

section 911, 931, 
 or 933.
 ``

    (3) Threshold amount.--The term `threshold amount' 
 means--
 ``
        (A) $150,000 in the case of a joint return, and
 ``
        (B) $75,000 in any other case.
 ``

    (4) Indexing.--In the case of any taxable year beginning 
 in a calendar year after 2025, each dollar amount contained in 
 paragraph

    (3) shall be increased by an amount equal to the 
 product of--
 ``
        (A) such dollar amount, and
 ``
        (B) the cost-of-living adjustment determined 
 under 

section 1

    (f)

    (3) for the calendar year in which 
 the taxable year begins, determined by substituting 
 `calendar year 2024' for `calendar year 2016' in 
 subparagraph
        (A)
            (ii) thereof.
 ``

    (5) Rounding rule.--If any increase determined under 
 paragraph

    (4) is not a multiple of $50, such increase shall be 
 rounded to the next lowest multiple of $50.
 ``

    (g) Identification Requirements.--No credit shall be allowed 
under this section to a taxpayer with respect to any qualified care 
recipient unless the taxpayer includes the name and taxpayer 
identification number of such individual, and the identification number 
of the licensed health care practitioner certifying such individual, on 
the return of tax for the taxable year.''.

    (b) Clerical Amendment.--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 25E the following new 
item:

``

Sec. 25F. Working family caregivers.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
 <all>