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. To qualify, you must be at least 18 years old (or 16 and legally emancipated), a U.S. citizen, and live in the same home as your relative for at least 6 months of the year while providing at least 10 hours per week of care. Your relative must be at least 55 years old and need help with daily activities like bathing, dressing, or eating, plus household tasks like cooking, managing money, or shopping—requiring at least 10 hours of assistance per week. A doctor or licensed healthcare provider must confirm your relative's care needs when you file your taxes.

The credit phases out for higher earners: it starts reducing by 1% for every dollar your income exceeds $75,000 (or $150,000 if you're married and file jointly), eventually disappearing completely at higher income levels. You can claim the credit for up to two relatives per year, but only one person can claim the credit for each relative—if multiple adult children live in the home, the one with the highest income gets to claim it. The credit doesn't apply if you're already claiming a dependent care credit for that same relative. This tax benefit is designed to help families who choose multigenerational living arrangements and recognize the financial burden of providing in-home care for aging relatives.