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Bill

S 4647

AGE Act of 2026

119th Congress Introduced by Amy Klobuchar and 1 co-sponsor

Creates a nonrefundable 20% tax credit for eldercare expenses, up to $6,000 per year (reduced with higher income).

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4647

Overview

  • Bill: S. 4647 (AGE Act of 2026)
  • Purpose: Amend the Internal Revenue Code to establish a nonrefundable income tax credit for eldercare expenses.
  • Introduced in the Senate on June 1, 2026, by Senator Klobuchar (with Senator Smith as a co-sponsor).
  • Referred to the Senate Committee on Finance.

Main purpose and intent

  • Create a new nonrefundable personal income tax credit to help individuals offset eldercare costs for a qualifying eldercare recipient.
  • The credit is designed to assist taxpayers who are providing care for elderly relatives or others living in their household who meet the qualifying criteria.

Key provisions and changes

  • New credit: Sec. 25G, “Expenses for eldercare.”

    • Eligibility: The credit applies to individuals who have one or more qualifying individuals with respect to the taxpayer.
    • Credit amount: The credit equals the applicable percentage of eldercare expenses paid during the taxable year.
    • Applicable percentage: 20% of eldercare expenses, reduced (but not below zero) by 1 percentage point for each $4,000 (or fraction) by which the taxpayer’s adjusted gross income (AGI) exceeds $120,000.
    • Cap on expenses: Eldercare expenses eligible for the credit are capped at $6,000 per taxable year.
    • Interaction with other benefits: The $6,000 cap is reduced by any amount excluded from gross income under the dependent care provisions (Sec. 129) for that year.
    • Special rules:
    • No credit for payments to related individuals for whom a § 151(c) deduction is allowable to the taxpayer or spouse.
    • Taxpayers must provide identifying information (name, address, and taxpayer ID) for the service provider on the tax return claiming the credit; if the provider is a 501(c)(3) organization, name and address suffice.
    • Qualifying individuals must have their own identifying information on the return if applicable.
    • If information is not provided, the credit does not apply unless the taxpayer demonstrates due diligence in attempting to provide it.
    • No double benefit: The eldercare credit cannot be claimed for expenses that are credited under Sec. 21 (historic child tax credit/other related credits, as applicable).
    • Definitions:
    • Qualifying individual: An elderly person (age 65+), requiring assistance with activities of daily living, who is a member of the taxpayer’s household or closely related (e.g., parent, parent-in-law, stepparent, or other person living in the same household or someone sharing the principal place of abode).
    • Eldercare expenses: Broadly defined to include medical care (as defined in §213(d)(1)), lodging away from home, adult day services, personal care, respite care, assistive technologies and devices (including remote health monitoring), environmental modifications (home modifications), and counseling or training for a caregiver.
    • Care centers: Eldercare expenses paid to centers outside the household are allowed only if the center complies with applicable state/local laws and regulations and if the center provides services to more than six individuals and charges a fee or receives funding (profit or non-profit).

  • Conforming amendments:

    • Adds Sec. 25G to the list of sections in Subpart A of Part IV of Subchapter A of Chapter 1 (Internal Revenue Code).
    • Amends Sec. 213(e) to include references to the eldercare credit (25G) and adjusts the heading to reference elders.
    • Amends Sec. 6213(g)(2) to include the eldercare credit in cross-references related to tax benefit coordination.

  • Effective date: Provisions apply to taxable years beginning after the date of enactment.

Who would be affected

  • Taxpayers who incur eldercare expenses for qualifying individuals (elderly or dependent-type individuals living in the taxpayer’s household or closely related) and meet income-based reduction thresholds.
  • Care providers and eldercare centers may be impacted by the documentation requirements and the Center eligibility criteria for expense eligibility.
  • Taxpayers paying for eldercare services to related individuals may face certain restrictions (no credit for payments to related individuals if a § 151(c) deduction is available).

Procedural and timeline aspects

  • Status: Introduced and referred to the Senate Committee on Finance (as of the latest action).
  • Regulation and administration: The Secretary of the Treasury would issue regulations as necessary to implement the credit.
  • Interaction with existing credits: The BEDD (dependent care) exclusion under §129 interacts with the credit cap; the bill also prohibits double benefits with the child-related Sec. 21 credit where applicable.

Summary of potential impact

  • Financial relief for families bearing eldercare costs, with an initial 20% credit on eligible expenses and a $6,000 expense cap (adjusted by income level).
  • Higher-income taxpayers would see a gradually diminishing credit as AGI rises above $120,000.
  • The framework emphasizes formal documentation of both service providers and qualifying individuals to ensure proper use and prevent abuse.
  • The credit could incentivize formal eldercare arrangements and may affect decisions about caregiving arrangements and work participation of caregivers.

Compiled from official sources — confirm details with the bill’s official record.

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