Entitled the "Elderly Home Care Tax Credit Act" of 1989.

Amends the Internal Revenue Code to allow a taxpayer a 30 percent nonrefundable income tax credit for up to $10,000 (with a maximum of $5,000 per qualifying relative) of expenses incurred to care for a relative aged 70 or older whose income is $15,000 or less and who is disabled or has been diagnosed as having Alzheimer's disease. Reduces the credit (but not below 20 percent) for taxpayers with adjusted gross income above $25,000, with additional reductions when income exceeds $75,000. Applies the credit to home health agency services, homemaker services, adult day care, respite care, and certain health care equipment and supplies.