The proposed bill amends the Income Tax Act of 1967 by adding a new section that allows eligible family caregivers to claim a tax credit starting from tax years beginning on or after January 1, 2026. The credit is set at 30% of the qualified expenses incurred by the caregiver during the tax year, with a maximum limit of $2,000. Caregivers must not include any expenses for which they have been reimbursed by insurance or assistance programs. To qualify for the credit, caregivers must provide documentation of their expenses, the Social Security number of the family member receiving care, and any necessary certifications.

The bill defines key terms such as "eligible family caregiver," "eligible family member," and "qualified expenses." An eligible family caregiver must be a state resident with an adjusted gross income below $50,000 for single filers or $100,000 for joint filers, and must have incurred at least $2,000 in uncompensated expenses for care. The definition of "eligible family member" includes individuals who require assistance with daily living activities due to age or health conditions. Qualified expenses encompass a range of services and supports, including respite care, transportation, and assistive technologies, while explicitly excluding general household maintenance costs.

Statutes affected:
House Introduced Bill: 206.1, 206.847