S. 4647

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4647 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4647

To amend the Internal Revenue Code of 1986 to provide an income tax 
credit for eldercare expenses.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 1, 2026

Ms. Klobuchar (for herself and Ms. Smith) 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 an income tax 
credit for eldercare expenses.

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 ``Americans Giving Care to Elders Act 
of 2026'' or the ``AGE Act of 2026''.

SEC. 2. CREDIT FOR ELDERCARE EXPENSES.

(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 25F the following new section:

``SEC. 25G. EXPENSES FOR ELDERCARE.

``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual for which 
there are 1 or more qualifying individuals 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 eldercare expenses paid by 
such individual during the taxable year.
``(2) Applicable percentage.--For purposes of paragraph 
(1), the term `applicable percentage' means 20 percent, reduced 
(but not below zero) by 1 percentage point for each $4,000 (or 
fraction thereof) by which the taxpayer's adjusted gross income 
for the taxable year exceeds $120,000.
``(b) Definitions.--For purposes of this section--
``(1) Qualifying individual.--The term `qualifying 
individual' means an individual--
``(A) who has attained age 65,
``(B) who requires assistance with activities of 
daily living, and
``(C) who is, with respect to the taxpayer or the 
taxpayer's spouse--
``(i) the father or mother or an ancestor 
of such father or mother,
``(ii) the father-in-law or mother-in-law 
or an ancestor of such father-in-law or mother-
in-law,
``(iii) the stepfather or stepmother or an 
ancestor of such stepfather or stepmother, or
``(iv) any other person who, for the 
taxable year, has the same principal place of 
abode as the taxpayer and is a member of the 
household of the taxpayer.
``(2) Eldercare expenses.--
``(A) In general.--The term `eldercare expenses' 
means the following amounts paid for expenses relating 
to the care of a qualifying individual:
``(i) Medical care (as defined in section 
213(d)(1), without regard to subparagraph (D) 
thereof).
``(ii) Lodging away from home in accordance 
with section 213(d)(2).
``(iii) Adult day services.
``(iv) Personal care.
``(v) Respite care.
``(vi) Assistive technologies and devices 
(including remote health monitoring).
``(vii) Environmental modifications 
(including home modifications).
``(viii) Counseling or training for a 
caregiver.
``(B) Definitions.--For purposes of subparagraph 
(A)--
``(i) Adult day services.--The term `adult 
day services' means care provided for adults 
with functional or cognitive impairments 
through a structured, community-based group 
program which provides health, social, and 
other related support services on a less than 
24-hour basis.
``(ii) Personal care.--The term `personal 
care' means reasonable personal care services 
provided to assist with daily living which do 
not require the skills of qualified technical 
or professional personnel.
``(iii) Respite care.--The term `respite 
care' means planned or emergency care intended 
to provide temporary relief to a caregiver.
``(C) Care centers.--
``(i) In general.--Eldercare expenses 
described in subparagraph (A) which are 
incurred for services provided outside the 
taxpayer's household by a care center shall be 
taken into account only if such center complies 
with all applicable laws and regulations of a 
State or unit of local government.
``(ii) Care center.--For purposes of this 
subparagraph, the term `care center' means any 
facility which--
``(I) provides care for more than 6 
individuals, 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 Limitation.--
``(1) In general.--The amount of the eldercare expenses 
incurred during any taxable year which may be taken into 
account under subsection (a) shall not exceed $6,000.
``(2) Coordination with dependent care assistance 
exclusion.--The dollar amount in paragraph (1) shall be reduced 
by the aggregate amount excluded from gross income under 
section 129 for the taxable year, if any.
``(d) Special Rules.--For purposes of this section--
``(1) Payments to related individuals.--No credit shall be 
allowed under subsection (a) for any amount paid to an 
individual with respect to whom, for the taxable year, a 
deduction under section 151(c) is allowable either to the 
taxpayer or the taxpayer's spouse. For purposes of this 
paragraph, the term `taxable year' means the taxable year of 
the taxpayer in which the service is performed.
``(2) 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.
``(3) Identifying information required with respect to 
qualifying individuals.--No credit shall be allowed under 
subsection (a) with respect to any qualifying individual unless 
the taxpayer identification number of such individual is 
included on the return claiming the credit.
``(e) Denial of Double Benefit.--No credit shall be allowed under 
subsection (a) for any amount with respect to which a credit is allowed 
under section 21.
``(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 inserting after the item relating to section 25F the 
following new item:

``Sec. 25G. Expenses for eldercare.''.
(c) Conforming Amendments.--
(1) Section 213(e) of the Internal Revenue Code of 1986 is 
amended--
(A) by inserting ``or section 25G'' after ``section 
21'', and
(B) by inserting ``and Elders'' after ``Certain 
Dependents'' in the heading.
(2) Section 6213(g)(2) of such Code is amended--
(A) by inserting ``, section 25G (relating to 
expenses for care of elders),'' after ``(relating to 
expenses for household and dependent care services 
necessary for gainful employment)'' in subparagraph 
(H), and
(B) by inserting ``, 25G'' after ``24'' in 
subparagraph (L).
(d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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