This bill amends the family caregiver credit by expanding the definition of eligible expenditures to include mileage for driving eligible family members to and from medical appointments, calculated at the IRS standard rate for medical and dental expenses. Additionally, the bill removes the previous age requirement that an eligible family member must be at least sixty-two years old. The definition of "eligible family member" is updated to include those who qualify as a dependent, spouse, parent, or other relation by blood or marriage to the family caregiver, and who live in a private residential home rather than in assisted living or nursing facilities.

The bill also establishes a tax credit for family caregivers, allowing them to claim fifty percent of eligible expenditures incurred for the care and support of an eligible family member, with a maximum credit of $2,000, or $3,000 if the family member is a veteran or has dementia. The total credits authorized for all taxpayers is capped at $1.5 million annually, with provisions for adjustments in subsequent years if the total claims exceed this limit. The act is set to take effect on November 1, 2026.