text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Caring Family Act of 2003''.
  
  SEC. 2. ADDITIONAL PERSONAL EXEMPTION FOR DEPENDENTS WITH LONG-TERM 
                CARE NEEDS IN TAXPAYER'S HOME.
  
      (a) In General.--Section 151 of the Internal Revenue Code of 1986 
  (relating to allowance of deductions for personal exemptions) is 
  amended by redesignating subsections (d) and (e) as subsections (e) and 
  (f), respectively, and by inserting after subsection (c) the following 
  new subsection:
      ``(d) Additional Exemption for Dependents With Long-Term Care Needs 
  in Taxpayer's Home.--
              ``(1) In general.--An exemption of the applicable amount 
          for each qualified family member of the taxpayer.
              ``(2) Applicable amount.--For purposes of paragraph (1), 
          the applicable amount is the amount determined in accordance 
          with the following table:
  
  ``For taxable years beginning                       The applicable
      in calendar year--                      applicable amount is--
      2003 and 2004.................................                $500 
      2005 and 2006.................................               1,000 
      2007 and 2008.................................               1,500 
      2009 and 2010.................................               2,000 
      2011 and 2012.................................               2,500 
      2013 and thereafter...........................                   0.
              ``(3) Qualified family member.--For purposes of this 
          subsection, the term `qualified family member' means, with 
          respect to any taxable year, any individual--
                      ``(A) who is--
                              ``(i) the spouse of the taxpayer, or
                              ``(ii) a dependent of the taxpayer with 
                          respect to whom the taxpayer is entitled to an 
                          exemption under subsection (c),
                      ``(B) who has attained age 60 before the close of 
                  the taxable year,
                      ``(C) who is an individual with long-term care 
                  needs, and
                      ``(D) who, for more than one-half of the taxable 
                  year, has as such individual's principal place of abode 
                  the home of the taxpayer and is a member of the 
                  taxpayer's household.
              ``(4) Individuals with long-term care needs.--For purposes 
          of this subsection, the term `individual with long-term care 
          needs' means, with respect to any taxable year, an individual 
          who has been certified during such year by a physician (as 
          defined in section 1861(r)(1) of the Social Security Act) as 
          being, for a period of at least 180 consecutive days which 
          includes the date of the certification--
                      ``(A) an individual who is unable to perform 
                  (without substantial assistance from another 
                  individual) at least 2 activities of daily living (as 
                  defined in section 7702B(c)(2)(B)) due to a loss of 
                  functional capacity, or
                      ``(B) an individual who 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.
              ``(5) Identification requirement.--
                      ``(A) In general.--No exemption shall be allowed 
                  under this subsection to a taxpayer with respect to any 
                  qualified family member unless the taxpayer includes on 
                  the return of tax for the taxable year--
                              ``(i) the name and TIN of such member, and
                              ``(ii) the name and TIN of the physician 
                          certifying such member.
                      ``(B) Exception for due diligence.--In the case of 
                  a failure to provide the information required under 
                  subparagraph (A)(ii), such subparagraph shall not apply 
                  if it is shown that the taxpayer exercised due 
                  diligence in attempting to provide the information so 
                  required.
              ``(6) Special rules.--Rules similar to the rules of 
          paragraphs (2), (3), and (4) of section 21(e) shall apply for 
          purposes of this subsection.''.
      (b) Conforming Amendments.--
              (1) Section 1(f)(6)(A) of such Code is amended by striking 
          ``151(d)(4)'' and inserting ``151(e)(4)''.
              (2) Section 1(f)(6)(B) of such Code, as amended by the 
          Economic Growth and Tax Relief Reconciliation Act of 2001, is 
          amended by striking ``151(d)(3)(A)'' and inserting 
          ``151(e)(3)(A)''.
              (3) Section 1(f)(6)(B) of such Code, as in effect on the 
          day before the date of the enactment of the Economic Growth and 
          Tax Relief Reconciliation Act of 2001, is amended by striking 
          ``151(d)(4)(A)'' and inserting ``151(e)(4)(A)''.
              (4) Section 3402(f)(1)(A) of such Code is amended by 
          striking ``151(d)(2)'' and inserting ``151(e)(2)''.
              (5) Section 3402(r)(2)(B) of such Code is amended by 
          striking ``151(d)'' and inserting ``151(e)''.
              (6) Section 6012(a)(1)(D)(ii) of such Code is amended--
                      (A) by striking ``151(d)'' and inserting 
                  ``151(e)'', and
                      (B) by striking ``151(d)(2)'' and inserting 
                  ``151(e)(2)''.
              (7) Section 6013(b)(3)(A) of such Code is amended by 
          striking ``151(d)'' and inserting ``151(e)''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after December 31, 2002.
target: Caring Family Act of 2003 - Amends the Internal Revenue Code to allow an additional exemption for dependents, residing with the taxpayer, with long-term care needs who are over the age of 60.
feat_title: To amend the Internal Revenue Code of 1986 to provide an additional personal exemption for certain dependents with long-term care needs.