The proposed bill introduces the Caregiver Tax Credit Act, which aims to provide financial relief to family caregivers in West Virginia. It establishes a new article in the state code that defines key terms such as "activities of daily living," "eligible expenditure," "eligible family member," and "family caregiver." The bill outlines the criteria for eligible expenditures, which include necessary improvements to a caregiver's home or vehicle, the purchase of medical equipment, and other related expenses incurred while providing care. The act specifies that eligible family members must be over 18, live at home, and require assistance with daily activities, while family caregivers must be residents who have incurred direct expenses for caregiving.

Under the new provisions, starting from January 1, 2027, family caregivers will be allowed a tax credit of 50% of eligible expenditures, with a maximum credit limit of $2,000. This credit is nonrefundable, meaning that any unused portion cannot be carried forward to future tax years. The West Virginia Department of Revenue is tasked with creating the necessary rules for the implementation and administration of this tax credit. The bill aims to support family caregivers by alleviating some of the financial burdens associated with providing care to their loved ones.

Statutes affected:
Introduced Version: 11-29-1, 11-29-2, 11-29-3, 11-29-4
Committee Substitute: 11-29-1, 11-29-2, 11-29-3, 11-29-4