S. 3295

119 S3295 IS: To amend the Internal Revenue Code of 1986 to establish a credit for adult child caregivers.
 U.S. Senate
 2025-12-02
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 3295  IN THE SENATE OF THE UNITED STATES   December 2, 2025   Mr. Welch  (for himself and  Mr. Scott of Florida ) 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 establish a credit for adult child caregivers.
1.
Findings
Congress makes the following findings:
(1)
Once formed, multigenerational families tend to live together over time and utilize less paid and unpaid formal support. Adult child proximity may be more directly linked with reduced need for formal care than availability of a spouse.
(2)
Older adults in multigenerational homes experience less depression and isolation, and show improved cognition with concurrent hearing loss.
(3)
An older adult with dementia and disability co-residing with an adult child has a 50 percent lower risk of transitioning from the community to a nursing home in the subsequent 2 years, compared to older adults supported by children living outside the home.
2.
Multigenerational home caregiver credit
(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 25E the following new section:
25F.
Multigenerational home caregiver credit
(a)
Allowance of credit
In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to $2,000 for each qualified relative with respect to the individual.
(b)
Eligible individual
For purposes of this section—
(1)
In general
The term  eligible individual  with respect to any taxable year means an individual—
(A)
who has attained age 18, or has attained age 16 and is legally emancipated, as of the last day of such taxable year,
(B)
who is a United States citizen,
(C)
who has the same principal place of abode as a qualified relative for not less than 6 months during the taxable year,
(D)
who provides a total of not less than 10 hours per week of the assistance required by such qualified relative pursuant to paragraph (2)(A)(iii), and
(E)
who includes with the return of tax for the taxable year an attestation signed by a licensed health care provider that, to the best of the provider's knowledge, the qualified relative meets the requirements of clauses (iii) and (iv) of paragraph (2)(A).
(2)
Qualified relative
(A)
In general
The term  qualified relative  with respect to an individual means an individual—
(i)
who bears a relationship described in subparagraph (B) to such individual or to such individual's spouse,
(ii)
who has attained age 55 as of the last day of the taxable year,
(iii)
who is unable to perform (without substantial assistance from another individual) at least—
(I)
1 activity of daily living (as defined in section 7702B(c)(2)(B)), and
(II)
3 instrumental activities of daily living,
  requiring a total of not less than 10 hours per week of assistance with such activities, and
(iv)
with respect to whom the period during which clause (iii) applies has lasted or will last for not less than 180 days or the life of the individual, whichever is shorter.
(B)
Relationship
For purposes of subparagraph (A), a relationship described in this subparagraph is a relationship described in subparagraph (C), (D), (F), or (G) of section 152(d)(2), except that only a father-in-law or mother-in-law shall be taken into account for purposes of subparagraph (G) thereof.
(C)
Instrumental activities of daily living
(i)
In general
The term  instrumental activities of daily living  includes meal planning and preparation, managing finances, shopping for food, clothing, and other essential items, performing essential household chores, communicating by phone or other media, and traveling around and participating in the community.
(ii)
Coordination
In prescribing regulations or other guidance for purposes of clause (i), the Secretary shall to the extent practicable coordinate with the Secretary of Health and Human Services to ensure consistency with programs under chapter 7 of the Social Security Act.
(3)
Special rule for qualified relatives dying during the taxable year
In the case of the death of an individual who would be a qualified relative with respect to the taxpayer but for subparagraph (C) of paragraph (1) (determined without regard to this paragraph), such subparagraph shall be applied for the taxable year in which such individual died by substituting  3 months  for  6 months .
(c)
Limitations
(1)
Limitation based on adjusted gross income
The $2,000 amount in subsection (a) shall be reduced (but not below zero) by 1 percent of the excess of the taxpayer’s adjusted gross income over $75,000 ($150,000 in the case of a joint return).
(2)
Only 1 taxpayer may claim qualified relative
In the case of an individual who is the qualified relative by reason of whom the credit under this section is allowed, the credit under this section shall be allowed to only 1 taxpayer with respect to such individual for any taxable year. If (but for this paragraph) such individual is a qualified relative of more than 1 taxpayer for the taxable year, such individual shall be treated as the qualified relative of the taxpayer with the highest adjusted gross income.
(3)
Limitation on qualified relatives
Not more than 2 qualified relatives with respect to the taxpayer may be taken into account for purposes of the credit under this section for any taxable year.
(4)
Married individuals must file joint return
If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year.
(5)
Coordination with child and dependent care credit
The amount of the credit determined under subsection (a) (after the application of paragraph (1)) with respect to any qualified relative shall be reduced (but not below zero) by the amount of any credit allowed under section 21 with respect to such qualified relative.
 .
(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 25E the following new item:
Sec. 25F. Multigenerational home caregiver credit.
  .
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2026.