text: 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.
target: 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.
feat_title: To amend the Internal Revenue Code of 1986 to provide a credit against income tax for caregivers of individuals with long-term care needs.