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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3295 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3295
To amend the Internal Revenue Code of 1986 to establish a credit for
adult child caregivers.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 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.
SEC. 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:
``SEC. 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.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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