A bill to amend the Internal Revenue Code of 1986 to provide for establishment of, and a credit for contributions to, long-term health care savings accounts.

Amends the Internal Revenue Code to allow an individual a nonrefundable income tax credit for contributions made to a long-term health care savings account established to pay the long-term health care expenses of an individual. Sets the amount of the credit at the lesser of ten percent of the contribution or $200. Includes as legitimate long-term health care expenses the costs of (or insurance premiums covering) diagnostic, preventive, therapeutic, rehabilitative, and personal care services that are: (1) required by a chronically ill or disabled individual; and (2) provided by a qualified provider (other than a family member) in a nursing facility, including hospitals and nursing homes, or in a home (if home care is a substitute for care in a nursing facility).

Provides that no account may have more than one beneficiary and that no individual may be a beneficiary of more than one account. Limits annual contributions to $2,000 per account. Disallows the credit in the case of a beneficiary covered under an employee benefit plan that provides similar benefits.

Identifies criteria and requirements applicable to a long-term health care savings account.

Excludes from gross income any account payments and distributions used exclusively for the qualified health care expenses of the eligible beneficiary.

Exempts an account from taxation unless the beneficiary or contributor engages in prohibited transactions or the beneficiary pledges the account as security.

Imposes a surtax on distributions not used for long-term health care purposes.

Requires the account trustee to report to the Secretary of the Treasury and to the account's beneficiary concerning the account.

Imposes penalty taxes in connection with excess contributions, prohibited transactions associated with an account, and failure to comply with reporting requirements.