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 if married or filing separately. The credit is set at 22.5% of the qualified care expenses, capped at $3,000 per taxable year. If multiple caregivers are involved, the credit will be divided equally unless a different allocation is agreed upon in writing. Additionally, caregivers can claim both the credit and a dependent deduction for the same qualifying senior family member.

The bill defines "qualified care expenses" as costs related to services and tangible personal property necessary for the care of a qualifying senior family member, which includes home health services, adult day care, and assistive devices, among others. It also specifies that qualifying senior family members must be at least 60 years old or 50 years old and eligible for Social Security Disability Insurance, with income not exceeding the New Jersey Elder Index. The credit is refundable, meaning any excess credit that reduces tax liability to zero will be refunded to the caregiver. The act is set to take effect immediately and will apply to taxable years beginning after January 1 following its enactment.