This bill establishes a gross income tax credit for qualified caregivers who incur expenses related to the care and support of a qualifying relative or individual with disabilities. Caregivers can claim a credit of up to $2,500 per taxable year for qualified care and support expenses, which include costs for home health services, adult day care, medical equipment, and other necessary services. To qualify for the credit, caregivers must provide documentation proving that the individual they care for either co-resides with them or receives at least 120 hours of care annually. If multiple caregivers are involved, the total credit claimed cannot exceed $2,500 for the same individual.

Additionally, the bill allows caregivers to claim this tax credit alongside any dependent deductions for the same qualifying relative or individual with disabilities. The credit is refundable, meaning that if it reduces the caregiver's tax liability to below zero, the remaining amount will be refunded as an overpayment of tax. The bill also outlines definitions for qualifying relatives, disabilities, and qualified care and support expenses, ensuring clarity on eligibility and the types of expenses that can be claimed.