Elder Care Tax Credit Act of 2008

Elder Care Tax Credit Act of 2008 - Amends the Internal Revenue Code to allow the tax credit for dependent care expenses for parents (or ancestors of such parents) of the taxpayer who are physically or mentally incapable of self-care, regardless of whether such a parent has the same principal place of abode as the taxpayer for more than one-half of the taxable year.

[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 7036 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7036

To amend the Internal Revenue Code of 1986 to modify the dependent care 
     credit to take into account expenses for care of parents and 
            grandparents who do not live with the taxpayer.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2008

   Mrs. Boyda of Kansas (for herself, Mr. Weiner, Mr. Rodriguez, Mr. 
 Israel, Mr. Carson, Mr. Ryan of Ohio, and Ms. Shea-Porter) 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 modify the dependent care 
     credit to take into account expenses for care of parents and 
            grandparents who do not live with the taxpayer.

    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 ``Elder Care Tax Credit Act of 2008''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Approximately two-thirds of the 5.5 million seniors 
        over age 65 who receive long-term care rely exclusively on 
        family, friends and other informal caregivers.
            (2) Two in ten adults age 41 to 59 are supporting their 
        parents financially, and slightly more than one in ten are 
        providing financial help to a parent while also raising or 
        supporting a child.
            (3) Adults who provide care for an aging relative have 
        extensive costs. Long-distance caregivers spend an average of 
        $8,728 annually, and those who care for someone nearby spend 
        $4,570.

SEC. 3. MODIFICATION OF CREDIT FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT 
              CARE SERVICES NECESSARY FOR GAINFUL EMPLOYMENT.

    (a) Credit Allowed for Costs Incurred To Care for Parents and 
Grandparents Who Do Not Live With the Taxpayer.--
            (1) In general.--Paragraph (1) of section 21(b) of the 
        Internal Revenue Code of 1986 (relating to qualifying 
        individual) is amended by striking ``or'' at the end of 
        subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, or'', and by adding at the 
        end the following new subparagraph:
                    ``(D) a dependent of the taxpayer (as defined in 
                section 152, determined without regard to subsections 
                (b)(1), (b)(2), (d)(1)(B), and (d)(1)(C)) who is the 
                father or mother of the taxpayer (or an ancestor of 
                such father or mother) and who is physically or 
                mentally incapable of caring for himself or herself.''.
            (2) Conforming amendment.--Subparagraph (B) of section 
        21(b)(1) of such Code is amended by inserting ``(other than a 
        dependent described in subparagraph (D))'' after ``and 
        (d)(1)(B))''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.
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