This bill creates a new tax credit of $2,000 per year for adult children who live with and care for aging parents or other older relatives. The credit is designed to help families who choose to keep elderly relatives at home rather than placing them in nursing homes or assisted living facilities.

To qualify, you must be at least 18 years old (or 16 and legally emancipated), a U.S. citizen, and live with your aging relative for at least 6 months of the year. You also need to provide at least 10 hours per week of care—helping with activities like bathing, dressing, eating, meal preparation, managing finances, shopping, and household chores. Your relative must be at least 55 years old and need significant assistance with daily living activities due to age, illness, or disability. A licensed healthcare provider must verify that your relative qualifies.

The credit phases out for higher earners: it starts reducing at $75,000 in adjusted gross income for single filers and $150,000 for joint filers. You can claim the credit for up to two relatives per year, but only one person in the household can claim the credit for each relative. If you're married, you must file a joint tax return to use this credit. The credit cannot be combined with the existing child and dependent care credit for the same relative.