S. 4647

119 S4647 IS: Americans Giving Care to Elders Act of 2026
 U.S. Senate
 2026-06-01
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 II  119th CONGRESS  2d Session  S. 4647  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.
1.
Short title
This Act may be cited as the   Americans Giving Care to Elders Act of 2026   or the   AGE Act of 2026  .
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:
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.