HB1815
To Create An Income Tax Credit For Family Caregivers.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1815 proposes the creation of an income tax credit in Arkansas for qualified family caregivers. To be eligible, a caregiver must meet specific income requirements, earning less than $75,000 for individuals or $150,000 for married couples. The bill allows caregivers to claim a credit equal to 50% of their eligible care-related expenses, up to a maximum of $1,000 per tax year. Eligible expenses include home modifications for accessibility, medical equipment, and services like respite care, transportation, and home care aides. These expenses must be directly related to the care of a relative aged 18 or older who requires assistance with daily living activities. The credit is non-refundable and limited to the total amount of income tax owed by the taxpayer. The legislation is scheduled to take effect for tax years beginning on or after January 1, 2024.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are low-to-middle-income family caregivers who provide unpaid care for aging or disabled adult relatives. This includes spouses, parents, in-laws, and other specified blood relations who incur out-of-pocket costs for accessibility improvements, medical equipment, or professional support services. By reducing their tax burden, the bill aims to alleviate the financial strain associated with caregiving responsibilities.
Who Might Suffer?
The primary entity negatively impacted is the state government, as the bill creates a new tax credit that will result in a reduction of state tax revenue. Additionally, because the bill is funded through the state budget, it may indirectly impact the availability of funds for other public services or programs. There are no specific groups identified in the text that would face direct harm, though individuals who do not qualify based on income or whose expenses do not meet the strict criteria for 'eligible expenses' will not receive the tax benefit.
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