The proposed bill aims to establish an income tax credit for family caregivers in Arkansas. It introduces a new section, 26-51-517, which defines key terms such as "activity of daily living," "eligible expenses," "eligible family member," and "family caregiver." The bill specifies that eligible expenses include costs related to home modifications, necessary equipment, and various services that assist caregivers in providing care to eligible family members. It also outlines the criteria for who qualifies as an eligible family member and a family caregiver, including income limits and the requirement for the family member to need assistance with daily activities.

The bill allows for an income tax credit equal to the lesser of 50% of a taxpayer's eligible expenses or $1,000, with provisions for allocation among multiple taxpayers claiming the credit for the same family member. Additionally, the credit cannot exceed the amount of income tax due by the taxpayer. The effective date for this tax credit is set for tax years beginning on or after January 1, 2024.