AGE Act of 2026
- Bill Number
- S. 4647
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-01: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-06-10T16:30:57Z
AI-Generated Summary
Americans Giving Care to Elders Act of 2026 (AGE Act of 2026) S. 4647 – 119th Congress
Purpose
This bill creates a new federal income tax credit to help individuals offset costs of caring for older family members or household members who need daily living assistance.
Key Provisions
- Credit Amount: Provides a non-refundable credit equal to 20% of qualifying eldercare expenses, phased down by 1 percentage point for each $4,000 (or fraction) by which adjusted gross income exceeds $120,000.
- Expense Limit: Up to $6,000 in annual expenses qualify, reduced by any amounts excluded under dependent care assistance rules.
- Qualifying Individuals: Must be age 65 or older, require assistance with daily activities, and be a parent, parent-in-law, stepparent, ancestor of these relatives, or a household member living with the taxpayer.
- Covered Expenses: Include medical care, temporary lodging for care, adult day programs, personal care services, respite care, assistive devices and remote monitoring, home modifications, and caregiver counseling or training.
- Restrictions: Expenses paid to close relatives are ineligible; care centers must follow state and local rules; identifying information (name, address, taxpayer ID) for providers and qualifying individuals is required on tax returns.
- Coordination Rules: No credit allowed for expenses that also qualify for the existing dependent care credit under section 21.
Significant Changes to Existing Law
- Adds new Internal Revenue Code section 25G for the eldercare credit.
- Updates section 213(e) to reference the new credit and revises its heading.
- Amends section 6213(g)(2) to add math error authority for the new credit.
- Applies to tax years beginning after the date of enactment.
Potential Impacts
- On Citizens: Offers tax relief to family caregivers, potentially reducing out-of-pocket costs for elder support services.
- On Government Agencies: The IRS would administer the credit through tax filings, including verification of provider and individual information.
- On International Relations: No direct effects identified.
Main Stakeholders Affected
- Taxpayers who pay for eldercare for qualifying relatives or household members.
- Individuals age 65 and older who need assistance with daily living.
- Care providers and facilities offering adult day services, respite care, or related supports.
- The Internal Revenue Service, responsible for processing claims and enforcement.
Notable Legal, Constitutional, or Political Implications
- Operates as a tax expenditure within existing congressional authority to modify the Internal Revenue Code.
- Requires taxpayer identification numbers and due diligence standards, consistent with other tax credits.
- No identified constitutional concerns; the credit is structured as an allowable deduction against tax liability.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-06-01: Read twice and referred to the Committee on Finance.
- 2026-06-01: Introduced in Senate
Bill Versions
- Americans Giving Care to Elders Act of 2026 — issued 2026-06-01 — PDF (8 pages)