The Caregiver's Assistance Act proposes a gross income tax credit for qualified caregivers who incur expenses for the care and support of qualifying senior family members. To qualify for the credit, caregivers must have a gross income not exceeding $100,000 (or $50,000 for those filing separately) and can receive a credit equal to 22.5% of up to $3,000 in qualified care expenses, amounting to a maximum of $675 per year. The bill stipulates that if multiple caregivers are eligible for the credit for the same senior family member, the credit will be divided equally unless an alternative allocation is agreed upon in writing.

Additionally, the bill allows caregivers to claim both the credit and a dependent deduction for the same qualifying senior family member. The credit is refundable, meaning that if it reduces the caregiver's tax liability to zero, any remaining credit will be refunded as an overpayment of tax. The definition of a qualifying senior family member includes individuals aged 60 or older or those aged 50 or older who qualify for Social Security Disability Insurance, with income limits based on the New Jersey Elder Index. Qualified care expenses encompass a range of necessary services and items that support the senior family member's care.