[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 925 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 925
To amend the Internal Revenue Code of 1986 to provide a tax credit for
working family caregivers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 11 (legislative day, March 10), 2025
Mrs. Capito (for herself and Mr. Bennet) 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 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.
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