[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 323 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 323
To amend the Internal Revenue Code of 1986 to provide a tax credit for
expenses for household and elder care services necessary for gainful
employment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 8, 2019
Ms. Lee of California (for herself, Ms. Wasserman Schultz, and Ms.
Wilson of Florida) 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
expenses for household and elder care services necessary for gainful
employment.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EXPENSES FOR HOUSEHOLD AND ELDER CARE SERVICES NECESSARY FOR
GAINFUL EMPLOYMENT.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 25E. EXPENSES FOR HOUSEHOLD AND ELDER CARE SERVICES NECESSARY
FOR GAINFUL EMPLOYMENT.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual for which
there are one 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 employment-related 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 35
percent reduced (but not below 20 percent) by 1 percentage
point for each $2,000 (or fraction thereof) by which the
taxpayer's adjusted gross income for the taxable year exceeds
$15,000.
``(b) Definitions of Qualifying Individual and Employment-Related
Expenses.--For purposes of this section--
``(1) Qualifying individual.--The term `qualifying
individual' means an individual who--
``(A) has attained age 50, and
``(B) is one of the following:
``(i) An individual who bears a
relationship to the taxpayer described in
subparagraph (C) or (D) of section 152(d)(2)
(relating to fathers, mothers, and ancestors).
``(ii) An individual would be a dependent
of the taxpayer (as defined in section 152,
determined without regard to subsections (b)(1)
and (b)(2)) as a qualifying relative described
in section 152(d)(1) if--
``(I) in lieu of subparagraphs (B)
and (C) thereof the following applied
with respect to the individual:
``(aa) the taxpayer has
provided over one-half of the
individual's support for the
calendar year in which such
taxable year begins and each of
the preceding 4 taxable years,
and
``(bb) the individual's
modified adjusted gross income
for the calendar year in which
such taxable year begins is
less than the exemption amount
(as defined in section 151(d)),
``(II) the individual is physically
or mentally incapable of caring for
himself or herself, and
``(III) the individual who has the
same principal place of abode as the
taxpayer for more than one-half of such
taxable year.
``(iii) The spouse of the taxpayer who is
physically or mentally incapable of caring for
himself or herself.
``(2) Modified adjusted gross income.--The term `modified
adjusted gross income' means adjusted gross income determined
without regard to section 86.
``(3) Employment-related expenses.--
``(A) In general.--The term `employment-related
expenses' means amounts paid for the following
expenses, but only if such expenses are incurred to
enable the taxpayer to be gainfully employed for any
period for which there are one or more qualifying
individuals with respect to the taxpayer:
``(i) expenses for household services, and
``(ii) expenses for the care of a
qualifying individual, including expenses for
respite care and hospice care.
``(B) Exception.--Employment-related expenses
described in subparagraph (A) which are incurred for
services outside the taxpayer's household shall be
taken into account only if incurred for the care of--
``(i) a qualifying individual described in
paragraph (1)(A), or
``(ii) a qualifying individual (not
described in paragraph (1)(A)) who regularly
spends at least 8 hours each day in the
taxpayer's household.
``(C) Dependent care centers.--Employment-related
expenses described in subparagraph (A) which are
incurred for services provided outside the taxpayer's
household by a dependent care center (as defined in
subparagraph (D)) shall be taken into account only if--
``(i) such center complies with all
applicable laws and regulations of a State or
unit of local government, and
``(ii) the requirements of subparagraph (B)
are met.
``(D) Dependent care center defined.--For purposes
of this paragraph, the term `dependent care center'
means any facility which--
``(i) provides care for more than six
individuals (other than individuals who reside
at the facility), 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.--The amount of the
employment-related expenses incurred during any taxable year which may
be taken into account under subsection (a) shall not exceed--
``(1) $3,000 if there is 1 qualifying individual with
respect to the taxpayer for such taxable year, or
``(2) $6,000 if there are two or more qualifying
individuals with respect to the taxpayer for such taxable year.
The amount determined under paragraph (1) or (2) (whichever is
applicable) shall be reduced by the aggregate amount excludable from
gross income under section 129 for the taxable year.
``(d) Earned Income Limitation.--Except as otherwise provided in
this subsection, the amount of the employment-related expenses incurred
during any taxable year which may be taken into account under
subsection (a) shall not exceed--
``(1) in the case of an individual who is not married at
the close of such year, such individual's earned income for
such year, or
``(2) in the case of an individual who is married at the
close of such year, the lesser of such individual's earned
income or the earned income of his spouse for such year.
``(e) Special Rules.--For purposes of this section--
``(1) Place of abode.--An individual shall not be treated
as having the same principal place of abode of the taxpayer if
at any time during the taxable year of the taxpayer the
relationship between the individual and the taxpayer is in
violation of local law.
``(2) Married couples must file joint return.--If the
taxpayer is married at the close of the taxable year, the
credit shall be allowed under subsection (a) only if the
taxpayer and his spouse file a joint return for the taxable
year.
``(3) Marital status.--An individual legally separated from
his spouse under a decree of divorce or of separate maintenance
shall not be considered as married.
``(4) Certain married individuals living apart.--If--
``(A) an individual who is married and who files a
separate return--
``(i) maintains as his home a household
which constitutes for more than one-half of the
taxable year the principal place of abode of a
qualifying individual, and
``(ii) furnishes over half of the cost of
maintaining such household during the taxable
year, and
``(B) during the last 6 months of such taxable year
such individual's spouse is not a member of such
household, such individual shall not be considered as
married.
``(5) Payments to related individuals.--No credit shall be
allowed under subsection (a) for any amount paid by the
taxpayer 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.
``(6) 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.
``(7) Identifying information required with respect to
qualifying individuals.--No credit shall be allowed under this
section with respect to any qualifying individual unless the
TIN of such individual is included on the return claiming the
credit.
``(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 adding at the end the following new item:
``Sec. 25E. Expenses for household and elder care services necessary
for gainful employment.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
To amend the Internal Revenue Code of 1986 to provide a tax credit for expenses for household and elder care services necessary for gainful employment.
#323 | HR Congress #116
Policy Area: Taxation
Last Action: Referred to the House Committee on Ways and Means. (1/8/2019)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text