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. Specifically, the 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. The total amount of credits available in a calendar year is capped at $1.5 million.

Additionally, the bill outlines that the tax credit will be awarded on a first-come, first-served basis until the cap is reached, and it specifies that the credit cannot exceed the taxpayer's income tax due. The act is set to take effect for tax years beginning on or after January 1, 2025. This legislation seeks to provide financial relief to caregivers who play a crucial role in supporting family members in need of assistance.