Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB925 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 925
5	5	To amend the Internal Revenue Code of 1986 to provide a tax credit for
6	6	working family caregivers.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	MARCH11 (legislative day, MARCH10), 2025
9	9	Mrs. C
10	10	APITO(for herself and Mr. BENNET) introduced the following bill;
11	11	which was read twice and referred to the Committee on Finance
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to provide
14	14	a tax credit for working family caregivers.
15	15	Be it enacted by the Senate and House of Representa-1
16	16	tives of the United States of America in Congress assembled, 2
17	17	SECTION 1. SHORT TITLE. 3
18	18	This Act may be cited as the ‘‘Credit for Caring Act 4
19	19	of 2025’’. 5
20	20	SEC. 2. CREDIT FOR WORKING FAMILY CAREGIVERS. 6
21	21	(a) I
22	22	NGENERAL.—Subpart A of part IV of sub-7
23	23	chapter A of chapter 1 of the Internal Revenue Code of 8
24	24	1986 is amended by inserting after section 25E the fol-9
25	25	lowing new section: 10
26	26	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
27	27	kjohnson on DSK7ZCZBW3PROD with $$_JOB 2
28	28	•S 925 IS
29	29	‘‘SEC. 25F. WORKING FAMILY CAREGIVERS. 1
30	30	‘‘(a) A
31	31	LLOWANCE OFCREDIT.—In the case of an eli-2
32	32	gible caregiver, there shall be allowed as a credit against 3
33	33	the tax imposed by this chapter for the taxable year an 4
34	34	amount equal to 30 percent of the qualified expenses paid 5
35	35	by the taxpayer during the taxable year to the extent that 6
36	36	such expenses exceed $2,000. 7
37	37	‘‘(b) L
38	38	IMITATION.— 8
39	39	‘‘(1) I
40	40	N GENERAL.—The amount allowed as a 9
41	41	credit under subsection (a) for the taxable year shall 10
42	42	not exceed $5,000. 11
43	43	‘‘(2) A
44	44	DJUSTMENT FOR INFLATION .—In the 12
45	45	case of any taxable year beginning after 2025, the 13
46	46	dollar amount contained in paragraph (1) shall be 14
47	47	increased by an amount equal to the product of— 15
48	48	‘‘(A) such dollar amount, and 16
49	49	‘‘(B) the medical care cost adjustment de-17
50	50	termined under section 213(d)(10)(B)(ii) for 18
51	51	the calendar year in which the taxable year be-19
52	52	gins, determined by substituting ‘2024’ for 20
53	53	‘1996’ in subclause (II) thereof. 21
54	54	If any increase determined under the preceding sen-22
55	55	tence is not a multiple of $50, such increase shall 23
56	56	be rounded to the next lowest multiple of $50. 24
57	57	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
58	58	kjohnson on DSK7ZCZBW3PROD with $$_JOB 3
59	59	•S 925 IS
60	60	‘‘(c) ELIGIBLECAREGIVER.—For purposes of this 1
61	61	section, the term ‘eligible caregiver’ means an individual 2
62	62	who— 3
63	63	‘‘(1) during the taxable year pays or incurs 4
64	64	qualified expenses in connection with providing care 5
65	65	for a qualified care recipient, and 6
66	66	‘‘(2) has earned income (as defined in section 7
67	67	32(c)(2)) for the taxable year in excess of $7,500. 8
68	68	‘‘(d) Q
69	69	UALIFIEDCARERECIPIENT.—For purposes of 9
70	70	this section— 10
71	71	‘‘(1) I
72	72	N GENERAL.—The term ‘qualified care re-11
73	73	cipient’ means, with respect to any taxable year, any 12
74	74	individual who— 13
75	75	‘‘(A) is the spouse of the eligible caregiver, 14
76	76	or any other person who bears a relationship to 15
77	77	the eligible caregiver described in any of sub-16
78	78	paragraphs (A) through (H) of section 17
79	79	152(d)(2), and 18
80	80	‘‘(B) has been certified, before the due 19
81	81	date for filing the return of tax for the taxable 20
82	82	year, by a licensed health care practitioner (as 21
83	83	defined in section 7702B(c)(4)) as being an in-22
84	84	dividual with long-term care needs described in 23
85	85	paragraph (3) for a period— 24
86	86	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
87	87	kjohnson on DSK7ZCZBW3PROD with $$_JOB 4
88	88	•S 925 IS
89	89	‘‘(i) which is at least 180 consecutive 1
90	90	days, and 2
91	91	‘‘(ii) a portion of which occurs within 3
92	92	the taxable year. 4
93	93	‘‘(2) P
94	94	ERIOD FOR MAKING CERTIFICATION .— 5
95	95	Notwithstanding paragraph (1)(B), a certification 6
96	96	shall not be treated as valid unless it is made within 7
97	97	the 39
98	98	1
99	99	⁄2-month period ending on such due date (or 8
100	100	such other period as the Secretary prescribes). 9
101	101	‘‘(3) I
102	102	NDIVIDUALS WITH LONG -TERM CARE 10
103	103	NEEDS.—An individual is described in this para-11
104	104	graph if the individual meets any of the following re-12
105	105	quirements: 13
106	106	‘‘(A) The individual is at least 6 years of 14
107	107	age and— 15
108	108	‘‘(i) is unable to perform (without 16
109	109	substantial assistance from another indi-17
110	110	vidual) at least 2 activities of daily living 18
111	111	(as defined in section 7702B(c)(2)(B)) due 19
112	112	to a loss of functional capacity, or 20
113	113	‘‘(ii) requires substantial supervision 21
114	114	to protect such individual from threats to 22
115	115	health and safety due to severe cognitive 23
116	116	impairment and is unable to perform, with-24
117	117	out reminding or cuing assistance, at least 25
118	118	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
119	119	kjohnson on DSK7ZCZBW3PROD with $$_JOB 5
120	120	•S 925 IS
121	121	1 activity of daily living (as so defined) or 1
122	122	to the extent provided in regulations pre-2
123	123	scribed by the Secretary (in consultation 3
124	124	with the Secretary of Health and Human 4
125	125	Services), is unable to engage in age ap-5
126	126	propriate activities. 6
127	127	‘‘(B) The individual is at least 2 but not 7
128	128	6 years of age and is unable due to a loss of 8
129	129	functional capacity to perform (without sub-9
130	130	stantial assistance from another individual) at 10
131	131	least 2 of the following activities: eating, trans-11
132	132	ferring, or mobility. 12
133	133	‘‘(C) The individual is under 2 years of age 13
134	134	and requires specific durable medical equipment 14
135	135	by reason of a severe health condition or re-15
136	136	quires a skilled practitioner trained to address 16
137	137	the individual’s condition to be available if the 17
138	138	individual’s parents or guardians are absent. 18
139	139	‘‘(e) Q
140	140	UALIFIEDEXPENSES.—For purposes of this 19
141	141	section— 20
142	142	‘‘(1) I
143	143	N GENERAL.—Subject to paragraph (4), 21
144	144	the term ‘qualified expenses’ means expenditures for 22
145	145	goods, services, and supports that— 23
146	146	‘‘(A) assist a qualified care recipient with 24
147	147	accomplishing activities of daily living (as de-25
148	148	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
149	149	kjohnson on DSK7ZCZBW3PROD with $$_JOB 6
150	150	•S 925 IS
151	151	fined in section 7702B(c)(2)(B)) and instru-1
152	152	mental activities of daily living (as defined in 2
153	153	section 1915(k)(6)(F) of the Social Security 3
154	154	Act (42 U.S.C. 1396n(k)(6)(F))), and 4
155	155	‘‘(B) are provided solely for use by such 5
156	156	qualified care recipient. 6
157	157	‘‘(2) A
158	158	DJUSTMENT FOR OTHER TAX BENE -7
159	159	FITS.—The amount of qualified expenses otherwise 8
160	160	taken into account under paragraph (1) with respect 9
161	161	to an individual shall be reduced by the sum of any 10
162	162	amounts paid for the benefit of such individual for 11
163	163	the taxable year which are— 12
164	164	‘‘(A) taken into account under section 21 13
165	165	or 213, or 14
166	166	‘‘(B) excluded from gross income under 15
167	167	section 129, 223(f), or 529A(c)(1)(B). 16
168	168	‘‘(3) G
169	169	OODS, SERVICES, AND SUPPORTS.—For 17
170	170	purposes of paragraph (1), goods, services, and sup-18
171	171	ports (as defined by the Secretary) shall include— 19
172	172	‘‘(A) human assistance, supervision, cuing 20
173	173	and standby assistance, 21
174	174	‘‘(B) assistive technologies and devices (in-22
175	175	cluding remote health monitoring), 23
176	176	‘‘(C) environmental modifications (includ-24
177	177	ing home modifications), 25
178	178	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
179	179	kjohnson on DSK7ZCZBW3PROD with $$_JOB 7
180	180	•S 925 IS
181	181	‘‘(D) health maintenance tasks (such as 1
182	182	medication management), 2
183	183	‘‘(E) information, 3
184	184	‘‘(F) transportation of the qualified care 4
185	185	recipient, 5
186	186	‘‘(G) non-health items (such as inconti-6
187	187	nence supplies), and 7
188	188	‘‘(H) coordination of and services for peo-8
189	189	ple who live in their own home, a residential 9
190	190	setting, or a nursing facility, as well as the cost 10
191	191	of care in these or other locations. 11
192	192	‘‘(4) Q
193	193	UALIFIED EXPENSES FOR ELIGIBLE 12
194	194	CAREGIVERS.—For purposes of paragraph (1), the 13
195	195	following shall be treated as qualified expenses if 14
196	196	paid or incurred by an eligible caregiver: 15
197	197	‘‘(A) Expenditures for respite care for a 16
198	198	qualified care recipient. 17
199	199	‘‘(B) Expenditures for counseling, support 18
200	200	groups, or training relating to caring for a 19
201	201	qualified care recipient. 20
202	202	‘‘(C) Lost wages for unpaid time off due to 21
203	203	caring for a qualified care recipient as verified 22
204	204	by an employer. 23
205	205	‘‘(D) Travel costs of the eligible caregiver 24
206	206	related to caring for a qualified care recipient. 25
207	207	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
208	208	kjohnson on DSK7ZCZBW3PROD with $$_JOB 8
209	209	•S 925 IS
210	210	‘‘(E) Expenditures for technologies, as de-1
211	211	termined by the Secretary, that assist an eligi-2
212	212	ble caregiver in providing care for a qualified 3
213	213	care recipient. 4
214	214	‘‘(5) H
215	215	UMAN ASSISTANCE.—The term ‘human 5
216	216	assistance’ includes the costs of a direct care worker. 6
217	217	‘‘(6) D
218	218	OCUMENTATION.—An expense shall not 7
219	219	be taken into account under this section unless the 8
220	220	eligible caregiver substantiates such expense under 9
221	221	such regulations or guidance as the Secretary shall 10
222	222	provide. 11
223	223	‘‘(7) M
224	224	ILEAGE RATE.—For purposes of this sec-12
225	225	tion, the mileage rate for the use of a passenger 13
226	226	automobile shall be the standard mileage rate used 14
227	227	to calculate the deductible costs of operating an 15
228	228	automobile for medical purposes. Such rate may be 16
229	229	used in lieu of actual automobile-related travel ex-17
230	230	penses. 18
231	231	‘‘(8) C
232	232	OORDINATION WITH ABLE ACCOUNTS .— 19
233	233	Qualified expenses for a taxable year shall not in-20
234	234	clude contributions to an ABLE account (as defined 21
235	235	in section 529A). 22
236	236	‘‘(f) P
237	237	HASEOUTBASED ONADJUSTEDGROSSIN-23
238	238	COME.—For purposes of this section— 24
239	239	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
240	240	kjohnson on DSK7ZCZBW3PROD with $$_JOB 9
241	241	•S 925 IS
242	242	‘‘(1) IN GENERAL.—The amount of the credit 1
243	243	allowable under subsection (a) shall be reduced (but 2
244	244	not below zero) by $100 for each $1,000 (or fraction 3
245	245	thereof) by which the taxpayer’s modified adjusted 4
246	246	gross income exceeds the threshold amount. 5
247	247	‘‘(2) M
248	248	ODIFIED ADJUSTED GROSS INCOME .— 6
249	249	The term ‘modified adjusted gross income’ means 7
250	250	adjusted gross income increased by any amount ex-8
251	251	cluded from gross income under section 911, 931, or 9
252	252	933. 10
253	253	‘‘(3) T
254	254	HRESHOLD AMOUNT .—The term ‘thresh-11
255	255	old amount’ means— 12
256	256	‘‘(A) $150,000 in the case of a joint re-13
257	257	turn, and 14
258	258	‘‘(B) $75,000 in any other case. 15
259	259	‘‘(4) I
260	260	NDEXING.—In the case of any taxable 16
261	261	year beginning in a calendar year after 2025, each 17
262	262	dollar amount contained in paragraph (3) shall be 18
263	263	increased by an amount equal to the product of— 19
264	264	‘‘(A) such dollar amount, and 20
265	265	‘‘(B) the cost-of-living adjustment deter-21
266	266	mined under section 1(f)(3) for the calendar 22
267	267	year in which the taxable year begins, deter-23
268	268	mined by substituting ‘calendar year 2024’ for 24
269	269	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925
270	270	kjohnson on DSK7ZCZBW3PROD with $$_JOB 10
271	271	•S 925 IS
272	272	‘calendar year 2016’ in subparagraph (A)(ii) 1
273	273	thereof. 2
274	274	‘‘(5) R
275	275	OUNDING RULE.—If any increase deter-3
276	276	mined under paragraph (4) is not a multiple of $50, 4
277	277	such increase shall be rounded to the next lowest 5
278	278	multiple of $50. 6
279	279	‘‘(g) I
280	280	DENTIFICATIONREQUIREMENTS.—No credit 7
281	281	shall be allowed under this section to a taxpayer with re-8
282	282	spect to any qualified care recipient unless the taxpayer 9
283	283	includes the name and taxpayer identification number of 10
284	284	such individual, and the identification number of the li-11
285	285	censed health care practitioner certifying such individual, 12
286	286	on the return of tax for the taxable year.’’. 13
287	287	(b) C
288	288	LERICALAMENDMENT.—The table of sections 14
289	289	for subpart A of part IV of subchapter A of chapter 1 15
290	290	of such Code is amended by inserting after the item relat-16
291	291	ing to section 25E the following new item: 17
292	292	‘‘Sec. 25F. Working family caregivers.’’.
293	293	(c) EFFECTIVEDATE.—The amendments made by 18
294	294	this section shall apply to taxable years beginning after 19
295	295	December 31, 2024. 20
296	296	Æ
297	297	VerDate Sep 11 2014 03:07 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\S925.IS S925
298	298	kjohnson on DSK7ZCZBW3PROD with $$_JOB