Long-term Care Quality and Modernization Act of 2007

Long-term Care Quality and Modernization Act of 2007 - Requires the Secretary of Health and Human Service to conduct a demonstration program under which the Secretary shall require a state to establish a process for joint training and education of surveyors and providers for skilled nursing facilities and nursing facilities at least annually.

Amends title XVIII (Medicare) and title XIX (Medicaid) of the Social Security Act to set forth provisions related to resumption of nursing aid training programs for skilled nursing facilities after correction of deficiencies.

Authorizes the Secretary to exclude from the Medicare prospective payment system for skilled nursing facilities: (1) high cost and low probability cancer treatment drugs; and (2) all ambulance services.

Authorizes a physician, nurse practitioner, or clinical nurse specialist to certify under Medicare that a prescribed series of blood glucose tests are medically required.

Amends the Public Health Service Act to require the Secretary to establish a national nursing database to predict future nursing shortages.

Amends the Internal Revenue Code to: (1) provide for a 15-year recovery period for qualified long-term care improvement property; (2) establish an investment tax credit for long-term care facility information technology; (3) establish tax-exempt long-term care trust accounts; (4) allow cash contributions to such accounts up to $5,000 annually; (5) allow an exclusion from gross income for certain distributions, including for long-term care services for chronically-ill individuals; (6) impose penalties for excess contributions to such accounts and for failure to provide required reports on such accounts; and (7) allow a refundable tax credit for 10% of the annual contributions to such accounts.