The proposed bill amends Arizona's individual income tax laws by introducing a new tax credit for taxpayers who incur qualifying expenses for the care and support of qualifying family members in their homes, effective for taxable years beginning after December 31, 2023. The credit allows taxpayers to claim 50% of qualifying expenses, up to a maximum of $1,000, provided their Arizona gross income does not exceed $200,000 for single filers or $400,000 for joint filers. The bill specifies that qualifying expenses include home modifications, equipment purchases, and other support services directly related to the care of qualifying family members, while excluding ordinary household maintenance and reimbursed expenses.

Additionally, the bill outlines the criteria for qualifying family members, which include individuals aged 18 or older who require assistance with daily living activities and are related to the taxpayer in specific ways. It also establishes provisions for the apportionment of the credit among multiple taxpayers caring for the same family member and allows taxpayers to carry forward unused credit amounts for up to five years. Overall, this bill introduces a new tax benefit aimed at supporting families who provide in-home care for relatives, expanding the existing tax framework.

Statutes affected:
Introduced Version: 43-222, 43-1080, 43-1079.01, 43-1088, 43-1089.04, 43-1167.01, 43-1175, 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03, 43-1183, 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, 43-1181, 43-1074.01, 43-1168, 43-1170, 43-1178, 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05, 43-1184