The proposed bill, titled the "Caring for Caregivers Act," aims to amend the income tax laws in Arkansas by introducing a tax credit for family caregivers who incur expenses while caring for eligible family members. The bill defines key terms such as "activities of daily living," "eligible expenditure," "eligible family member," and "family caregiver," establishing criteria for who qualifies for the tax credit. Eligible expenditures include costs related to home modifications, medical equipment, and various caregiving services, while excluding general household maintenance expenses. The tax credit allows caregivers to claim 50% of their eligible expenditures, with a maximum credit of $2,000, or $3,000 if the family member is a veteran or has dementia.

Additionally, the bill sets a cap on the total amount of tax credits that can be claimed in a calendar year, limiting it to $1.5 million. It specifies that if multiple taxpayers claim the credit for the same family member, the credit will be divided equally among them. The provisions of this act will take effect for tax years beginning on or after January 1, 2025.