II
119THCONGRESS
1
STSESSION 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
MARCH11 (legislative day, MARCH10), 2025
Mrs. C
APITO(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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Credit for Caring Act 4
of 2025’’. 5
SEC. 2. CREDIT FOR WORKING FAMILY CAREGIVERS. 6
(a) I
NGENERAL.—Subpart A of part IV of sub-7
chapter A of chapter 1 of the Internal Revenue Code of 8
1986 is amended by inserting after section 25E the fol-9
lowing new section: 10
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 2
•S 925 IS
‘‘SEC. 25F. WORKING FAMILY CAREGIVERS. 1
‘‘(a) A
LLOWANCE OFCREDIT.—In the case of an eli-2
gible caregiver, there shall be allowed as a credit against 3
the tax imposed by this chapter for the taxable year an 4
amount equal to 30 percent of the qualified expenses paid 5
by the taxpayer during the taxable year to the extent that 6
such expenses exceed $2,000. 7
‘‘(b) L
IMITATION.— 8
‘‘(1) I
N GENERAL.—The amount allowed as a 9
credit under subsection (a) for the taxable year shall 10
not exceed $5,000. 11
‘‘(2) A
DJUSTMENT FOR INFLATION .—In the 12
case of any taxable year beginning after 2025, the 13
dollar amount contained in paragraph (1) shall be 14
increased by an amount equal to the product of— 15
‘‘(A) such dollar amount, and 16
‘‘(B) the medical care cost adjustment de-17
termined under section 213(d)(10)(B)(ii) for 18
the calendar year in which the taxable year be-19
gins, determined by substituting ‘2024’ for 20
‘1996’ in subclause (II) thereof. 21
If any increase determined under the preceding sen-22
tence is not a multiple of $50, such increase shall 23
be rounded to the next lowest multiple of $50. 24
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 3
•S 925 IS
‘‘(c) ELIGIBLECAREGIVER.—For purposes of this 1
section, the term ‘eligible caregiver’ means an individual 2
who— 3
‘‘(1) during the taxable year pays or incurs 4
qualified expenses in connection with providing care 5
for a qualified care recipient, and 6
‘‘(2) has earned income (as defined in section 7
32(c)(2)) for the taxable year in excess of $7,500. 8
‘‘(d) Q
UALIFIEDCARERECIPIENT.—For purposes of 9
this section— 10
‘‘(1) I
N GENERAL.—The term ‘qualified care re-11
cipient’ means, with respect to any taxable year, any 12
individual who— 13
‘‘(A) is the spouse of the eligible caregiver, 14
or any other person who bears a relationship to 15
the eligible caregiver described in any of sub-16
paragraphs (A) through (H) of section 17
152(d)(2), and 18
‘‘(B) has been certified, before the due 19
date for filing the return of tax for the taxable 20
year, by a licensed health care practitioner (as 21
defined in section 7702B(c)(4)) as being an in-22
dividual with long-term care needs described in 23
paragraph (3) for a period— 24
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 4
•S 925 IS
‘‘(i) which is at least 180 consecutive 1
days, and 2
‘‘(ii) a portion of which occurs within 3
the taxable year. 4
‘‘(2) P
ERIOD FOR MAKING CERTIFICATION .— 5
Notwithstanding paragraph (1)(B), a certification 6
shall not be treated as valid unless it is made within 7
the 39
1
⁄2-month period ending on such due date (or 8
such other period as the Secretary prescribes). 9
‘‘(3) I
NDIVIDUALS WITH LONG -TERM CARE 10
NEEDS.—An individual is described in this para-11
graph if the individual meets any of the following re-12
quirements: 13
‘‘(A) The individual is at least 6 years of 14
age and— 15
‘‘(i) is unable to perform (without 16
substantial assistance from another indi-17
vidual) at least 2 activities of daily living 18
(as defined in section 7702B(c)(2)(B)) due 19
to a loss of functional capacity, or 20
‘‘(ii) requires substantial supervision 21
to protect such individual from threats to 22
health and safety due to severe cognitive 23
impairment and is unable to perform, with-24
out reminding or cuing assistance, at least 25
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 5
•S 925 IS
1 activity of daily living (as so defined) or 1
to the extent provided in regulations pre-2
scribed by the Secretary (in consultation 3
with the Secretary of Health and Human 4
Services), is unable to engage in age ap-5
propriate activities. 6
‘‘(B) The individual is at least 2 but not 7
6 years of age and is unable due to a loss of 8
functional capacity to perform (without sub-9
stantial assistance from another individual) at 10
least 2 of the following activities: eating, trans-11
ferring, or mobility. 12
‘‘(C) The individual is under 2 years of age 13
and requires specific durable medical equipment 14
by reason of a severe health condition or re-15
quires a skilled practitioner trained to address 16
the individual’s condition to be available if the 17
individual’s parents or guardians are absent. 18
‘‘(e) Q
UALIFIEDEXPENSES.—For purposes of this 19
section— 20
‘‘(1) I
N GENERAL.—Subject to paragraph (4), 21
the term ‘qualified expenses’ means expenditures for 22
goods, services, and supports that— 23
‘‘(A) assist a qualified care recipient with 24
accomplishing activities of daily living (as de-25
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 6
•S 925 IS
fined in section 7702B(c)(2)(B)) and instru-1
mental activities of daily living (as defined in 2
section 1915(k)(6)(F) of the Social Security 3
Act (42 U.S.C. 1396n(k)(6)(F))), and 4
‘‘(B) are provided solely for use by such 5
qualified care recipient. 6
‘‘(2) A
DJUSTMENT FOR OTHER TAX BENE -7
FITS.—The amount of qualified expenses otherwise 8
taken into account under paragraph (1) with respect 9
to an individual shall be reduced by the sum of any 10
amounts paid for the benefit of such individual for 11
the taxable year which are— 12
‘‘(A) taken into account under section 21 13
or 213, or 14
‘‘(B) excluded from gross income under 15
section 129, 223(f), or 529A(c)(1)(B). 16
‘‘(3) G
OODS, SERVICES, AND SUPPORTS.—For 17
purposes of paragraph (1), goods, services, and sup-18
ports (as defined by the Secretary) shall include— 19
‘‘(A) human assistance, supervision, cuing 20
and standby assistance, 21
‘‘(B) assistive technologies and devices (in-22
cluding remote health monitoring), 23
‘‘(C) environmental modifications (includ-24
ing home modifications), 25
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 7
•S 925 IS
‘‘(D) health maintenance tasks (such as 1
medication management), 2
‘‘(E) information, 3
‘‘(F) transportation of the qualified care 4
recipient, 5
‘‘(G) non-health items (such as inconti-6
nence supplies), and 7
‘‘(H) coordination of and services for peo-8
ple who live in their own home, a residential 9
setting, or a nursing facility, as well as the cost 10
of care in these or other locations. 11
‘‘(4) Q
UALIFIED EXPENSES FOR ELIGIBLE 12
CAREGIVERS.—For purposes of paragraph (1), the 13
following shall be treated as qualified expenses if 14
paid or incurred by an eligible caregiver: 15
‘‘(A) Expenditures for respite care for a 16
qualified care recipient. 17
‘‘(B) Expenditures for counseling, support 18
groups, or training relating to caring for a 19
qualified care recipient. 20
‘‘(C) Lost wages for unpaid time off due to 21
caring for a qualified care recipient as verified 22
by an employer. 23
‘‘(D) Travel costs of the eligible caregiver 24
related to caring for a qualified care recipient. 25
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 8
•S 925 IS
‘‘(E) Expenditures for technologies, as de-1
termined by the Secretary, that assist an eligi-2
ble caregiver in providing care for a qualified 3
care recipient. 4
‘‘(5) H
UMAN ASSISTANCE.—The term ‘human 5
assistance’ includes the costs of a direct care worker. 6
‘‘(6) D
OCUMENTATION.—An expense shall not 7
be taken into account under this section unless the 8
eligible caregiver substantiates such expense under 9
such regulations or guidance as the Secretary shall 10
provide. 11
‘‘(7) M
ILEAGE RATE.—For purposes of this sec-12
tion, the mileage rate for the use of a passenger 13
automobile shall be the standard mileage rate used 14
to calculate the deductible costs of operating an 15
automobile for medical purposes. Such rate may be 16
used in lieu of actual automobile-related travel ex-17
penses. 18
‘‘(8) C
OORDINATION WITH ABLE ACCOUNTS .— 19
Qualified expenses for a taxable year shall not in-20
clude contributions to an ABLE account (as defined 21
in section 529A). 22
‘‘(f) P
HASEOUTBASED ONADJUSTEDGROSSIN-23
COME.—For purposes of this section— 24
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 9
•S 925 IS
‘‘(1) IN GENERAL.—The amount of the credit 1
allowable under subsection (a) shall be reduced (but 2
not below zero) by $100 for each $1,000 (or fraction 3
thereof) by which the taxpayer’s modified adjusted 4
gross income exceeds the threshold amount. 5
‘‘(2) M
ODIFIED ADJUSTED GROSS INCOME .— 6
The term ‘modified adjusted gross income’ means 7
adjusted gross income increased by any amount ex-8
cluded from gross income under section 911, 931, or 9
933. 10
‘‘(3) T
HRESHOLD AMOUNT .—The term ‘thresh-11
old amount’ means— 12
‘‘(A) $150,000 in the case of a joint re-13
turn, and 14
‘‘(B) $75,000 in any other case. 15
‘‘(4) I
NDEXING.—In the case of any taxable 16
year beginning in a calendar year after 2025, each 17
dollar amount contained in paragraph (3) shall be 18
increased by an amount equal to the product of— 19
‘‘(A) such dollar amount, and 20
‘‘(B) the cost-of-living adjustment deter-21
mined under section 1(f)(3) for the calendar 22
year in which the taxable year begins, deter-23
mined by substituting ‘calendar year 2024’ for 24
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB 10
•S 925 IS
‘calendar year 2016’ in subparagraph (A)(ii) 1
thereof. 2
‘‘(5) R
OUNDING RULE.—If any increase deter-3
mined under paragraph (4) is not a multiple of $50, 4
such increase shall be rounded to the next lowest 5
multiple of $50. 6
‘‘(g) I
DENTIFICATIONREQUIREMENTS.—No credit 7
shall be allowed under this section to a taxpayer with re-8
spect to any qualified care recipient unless the taxpayer 9
includes the name and taxpayer identification number of 10
such individual, and the identification number of the li-11
censed health care practitioner certifying such individual, 12
on the return of tax for the taxable year.’’. 13
(b) C
LERICALAMENDMENT.—The table of sections 14
for subpart A of part IV of subchapter A of chapter 1 15
of such Code is amended by inserting after the item relat-16
ing to section 25E the following new item: 17
‘‘Sec. 25F. Working family caregivers.’’.
(c) EFFECTIVEDATE.—The amendments made by 18
this section shall apply to taxable years beginning after 19
December 31, 2024. 20
Æ
VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\S925.IS S925
kjohnson on DSK7ZCZBW3PROD with $$_JOB