The proposed bill introduces a new tax credit for Arizona residents who incur expenses for the care and support of qualifying family members in their home. This credit is applicable for taxable years beginning after December 31, 2023. To be eligible, taxpayers must file as residents of Arizona, have an Arizona gross income not exceeding $200,000 for single filers or $400,000 for joint filers, and incur qualifying expenses for the care of one or more qualifying family members. The credit is 50% of the qualifying expenses, capped at $1,000.

Qualifying expenses include improvements to the taxpayer's residence for the family member's mobility, safety, or independence, purchase or lease of equipment for daily living activities, and services such as home care aides, adult day care, transportation, and legal or financial services. Expenses reimbursed by insurance or government entities do not qualify. The credit can be apportioned among multiple taxpayers and carried forward for up to five years if it exceeds the taxpayer's tax liability. A "qualifying family member" is defined as a relative who is at least 18 years old and requires assistance with daily living activities.

Statutes affected:
Introduced Version: 43-222, 43-1080, 43-1079.01, 43-1088, 43-1089.04, 43-1167.01, 43-1175, 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03, 43-1183, 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, 43-1181, 43-1074.01, 43-1168, 43-1170, 43-1178, 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05, 43-1184