The General Assembly Raised Bill No. 285 proposes the establishment of a tax credit for family caregivers who incur eligible expenditures while providing care for eligible family members. Effective January 1, 2027, the bill defines key terms such as "activities of daily living," "eligible expenditure," "eligible family member," and "family caregiver." Eligible expenditures include costs related to home modifications, medical equipment, and hiring assistance, while excluding general household maintenance. The bill specifies that family caregivers must have a federal adjusted gross income below $50,000 for individuals or $100,000 for couples filing jointly and must have incurred uncompensated expenses for caregiving.

The tax credit allows family caregivers to claim 50% of their eligible expenditures, capped at $2,000 per taxable year. If multiple caregivers claim the credit for the same family member, the total credit will be divided equally among them. The Department of Revenue Services will manage the tax credit voucher system, with a total cap of $1.8 million in vouchers issued per taxable year. The credit is nonrefundable, meaning it can only reduce tax liability and not result in a refund.