AGE Act of 2026
Sponsored By: Senator Klobuchar, Amy [D-MN]
Introduced
Summary
Creates a new nonrefundable eldercare expense credit that helps taxpayers who pay for care of relatives age 65 or older who need help with daily activities. The credit covers a range of costs from adult day services to home modifications and caregiver training.
Show full summary
- Families and caregivers: Lets taxpayers claim a credit against tax for eligible eldercare expenses up to $6,000 per year. The credit is nonrefundable so it can only reduce tax liability.
- Older adults and households: A qualifying individual is age 65 or older who requires assistance with activities of daily living and who is either a specified relative or a household member. Eligible costs include adult day programs, personal care, respite care, assistive technologies, home modifications, counseling or training, and certain medical lodging.
- Filing and limits: The base credit rate is 20 percent and phases down for taxpayers with adjusted gross income above $120,000. Claiming the credit requires listing the service provider’s name, address, and taxpayer identification number or, for 501(c)(3) organizations, the name and address. The credit cannot duplicate the benefit under the dependent care rules.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
New eldercare tax credit for caregivers
If enacted, you would be able to claim a new nonrefundable tax credit for eligible eldercare costs. The credit equals 20% of up to $6,000 in qualifying eldercare expenses per year (up to $1,200 before income limits). The 20% rate would be reduced by 1 percentage point for each $4,000 (or fraction) your adjusted gross income is over $120,000, not below zero. A qualifying elder must be age 65 or older, need help with activities of daily living, and meet the relationship or household test (parent, parent‑in‑law, step‑parent, ancestor, or a household member living with you for the year). Eligible expenses include medical care and lodging, adult day services, personal and respite care, assistive devices and home modifications, and caregiver counseling or training. The credit could not duplicate the child and dependent care credit and would not cover payments to relatives you can claim as dependents. Care paid to a care center would be allowed only if the center complies with applicable State or local laws. Tax returns claiming the credit would have to include the care provider’s identifying information and the qualifying elder’s taxpayer ID; missing required information would disallow the credit unless you show due diligence. These rules would apply to taxable years beginning after enactment.
Technical tax-code updates for credit
If enacted, the bill would update Internal Revenue Code cross-references to include the new eldercare credit. It would add "or section 25G" to the code provision that now refers to the child and dependent care credit and update a heading to include "Elders." It would also add the new credit to another list of Code cross-references used for certain tax procedures. These are technical changes to integrate the credit and would apply to taxable years after enactment.
Sponsors & CoSponsors
Sponsor
Klobuchar, Amy [D-MN]
MN • D
Cosponsors
Sen. Smith, Tina [D-MN]
MN • D
Sponsored 6/1/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov