article: SECTION 1. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS. (a) In General.--Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25C the following new section: ``SEC. 25C. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS. ``(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to $1,200 multiplied by the number of applicable individuals with respect to whom the taxpayer is an eligible caregiver for the taxable year. ``(b) Definitions.--For purposes of this section-- ``(1) Applicable individual.-- ``(A) In general.--The term `applicable individual' means, with respect to any taxable year, any individual who has been certified, before the due date for filing the return of tax for the taxable year (without extensions), by a physician (as defined in section 1861(r)(1) of the Social Security Act) as being an individual with long-term care needs described in subparagraph (B) for a period-- ``(i) which is at least 180 consecutive days, and ``(ii) a portion of which occurs within the taxable year. Such term shall not include any individual otherwise meeting the requirements of the preceding sentence unless within the 39\1/2\ month period ending on such due date (or such other period as the Secretary prescribes) a physician (as so defined) has certified that such individual meets such requirements. ``(B) Individuals with long-term care needs.--An individual is described in this subparagraph if the individual is at least 6 years of age and-- ``(I) is unable to perform (without substantial assistance from another individual) at least 3 activities of daily living (as defined in section 7702B(c)(2)(B)) due to a loss of functional capacity, or ``(II) requires substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment and is unable to perform, without reminding or cuing assistance, at least 1 activity of daily living (as so defined) or to the extent provided in regulations prescribed by the Secretary (in consultation with the Secretary of Health and Human Services), is unable to engage in age appropriate activities. ``(2) Eligible caregiver.-- ``(A) In general.--A taxpayer shall be treated as an eligible caregiver for any taxable year with respect to the following individuals: ``(i) The taxpayer. ``(ii) The taxpayer's spouse. ``(iii) A brother or sister of the taxpayer. ``(iv) The mother or father of the taxpayer. ``(B) Special rules where more than 1 eligible caregiver.-- ``(i) In general.--If more than 1 individual is an eligible caregiver with respect to the same applicable individual for taxable years ending with or within the same calendar year, a taxpayer shall be treated as the eligible caregiver if each such individual (other than the taxpayer) files a written declaration (in such form and manner as the Secretary may prescribe) that such individual will not claim such applicable individual for the credit under this section. ``(ii) No agreement.--If each individual required under clause (i) to file a written declaration under clause (i) does not do so, the individual with the highest modified adjusted gross income (as defined in section 32(c)(5)) shall be treated as the eligible caregiver. ``(iii) Married individuals filing separately.--In the case of married individuals filing separately, the determination under this subparagraph as to whether the husband or wife is the eligible caregiver shall be made under the rules of clause (ii) (whether or not one of them has filed a written declaration under clause (i)). ``(c) Identification Requirement.--No credit shall be allowed under this section to a taxpayer with respect to any applicable individual unless the taxpayer includes the name and taxpayer identification number of such individual, and the identification number of the physician certifying such individual, on the return of tax for the taxable year. ``(d) Taxable Year Must Be Full Taxable Year.--Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months.''. (b) Conforming Amendments.-- (1) Section 6213(g)(2) of the Internal Revenue Code of 1986 is amended by striking ``and'' at the end of subparagraph (L), by striking the period at the end of subparagraph (M) and inserting ``, and'', and by inserting after subparagraph (M) the following new subparagraph: ``(N) an omission of a correct TIN or physician identification required under section 25C(c) (relating to credit for taxpayers with long-term care needs) to be included on a return.''. (2) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25B the following new item: ``Sec. 25C. Credit for taxpayers with long-term care needs.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2001.
summary: Amends the Internal Revenue Code to allow a tax credit for caregivers of individuals with long-term care needs in an amount equal to $1,200 for each such individual with respect to whom the taxpayer is an eligible caregiver for the taxable year.