Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 94th General Assembly A Bill
3 Regular Session, 2023 HOUSE BILL 1815
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5 By: Representative K. Ferguson
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7 For An Act To Be Entitled
8 AN ACT TO CREATE AN INCOME TAX CREDIT FOR FAMILY
9 CAREGIVERS; AND FOR OTHER PURPOSES.
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12 Subtitle
13 TO CREATE AN INCOME TAX CREDIT FOR FAMILY
14 CAREGIVERS.
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17 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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19 SECTION 1. Arkansas Code Title 26, Chapter 51, Subchapter 5, is
20 amended to add an additional section to read as follows:
21 26-51-517. Family caregiver expenses.
22 (a) As used in this section:
23 (1) “Activity of daily living” means without limitation:
24 (A) Ambulating;
25 (B) Transferring;
26 (C) Eating;
27 (D) Bathing;
28 (E) Dressing;
29 (F) Grooming; and
30 (G) Toileting;
31 (2)(A) “Eligible expenses” means expenses incurred by a family
32 caregiver that are directly related to assisting the family caregiver in
33 providing care to an eligible family member.
34 (B) “Eligible expenses” includes without limitation:
35 (i) The improvement or alteration to a family
36 caregiver's primary residence to permit an eligible family member to remain
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1 mobile, safe, and independent;
2 (ii) The purchase or lease of equipment that is
3 necessary to assist an eligible family member in carrying out one (1) or more
4 activities of daily living; and
5 (iii) Other goods, services, or supports that assist
6 a family caregiver in providing care to an eligible family member, including
7 without limitation expenditures related to hiring a home care aide or
8 personal care attendant, providing respite care, attending adult day care,
9 providing transportation, obtaining legal and financial services, and
10 obtaining assistive technology.
11 (C) “Eligible expenses” does not include expenses incurred
12 in carrying out general household maintenance activities, including without
13 limitation painting, plumbing, electrical repairs, and exterior maintenance;
14 (3) “Eligible family member” means an individual who:
15 (A) Is at least eighteen (18) years of age during the tax
16 year;
17 (B) Requires assistance with at least one (1) activity of
18 daily living, as certified by a healthcare practitioner licensed under § 17-
19 95-401 et seq.; and
20 (C) Is a dependent, spouse, parent, or other relation by
21 blood or marriage, including without limitation an in-law, grandparent,
22 grandchild, stepparent, aunt, uncle, niece, or nephew, of a family caregiver
23 during the tax year; and
24 (4) “Family caregiver” means an individual who:
25 (A) Is a resident taxpayer under this chapter for the tax
26 year, including in the case of taxpayers filing a joint return, both the
27 individual and the individual's spouse;
28 (B) Has an adjusted gross income of less than seventy-five
29 thousand dollars ($75,000) for an individual and one hundred fifty thousand
30 dollars ($150,000) for a married couple;
31 (C) Provides care to one (1) or more eligible family
32 members during the tax year; and
33 (D) Incurs uncompensated expenses directly related to the
34 care of an eligible family member.
35 (b)(1) There is allowed an income tax credit against the income tax
36 imposed by this chapter in the amount equal to the lesser of fifty percent
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1 (50%) of a taxpayer's eligible expenses during the tax year or one thousand
2 dollars ($1,000).
3 (2) If two (2) or more taxpayers claim the income tax credit
4 allowed under this section for the same eligible family member, the total
5 amount of the income tax credit allowed under this section shall be allocated
6 in equal amounts among the taxpayers.
7 (c) The amount of the income tax credit under this section that may be
8 claimed by the taxpayer in a tax year shall not exceed the amount of income
9 tax due by the taxpayer.
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11 SECTION 2. EFFECTIVE DATE. Section 1 of this act is effective for tax
12 years beginning on or after January 1, 2024.
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