Bill > HB3345

This bill establishes a Caregiver Tax Credit that allows family caregivers to receive a tax credit for expenses related to caring for an eligible family member, starting in 2027. The bill defines an eligible family member as an individual who is 18 or older, related to the caregiver, living in a private home, and requiring assistance with at least one activity of daily living (such as bathing, dressing, feeding, or toileting). Eligible expenditures include home or vehicle modifications to improve accessibility, purchasing medical equipment, hiring home care aids, paying for respite care, adult day care, transportation, and other direct care-related expenses. The tax credit will cover 50% of these out-of-pocket expenses, with a maximum allowable credit of $2,000 per year. The credit is nonrefundable, meaning it can only reduce the caregiver's tax liability to zero and cannot be carried forward to future years. To qualify, the family caregiver must be a resident taxpayer who is providing physical or financial support to the eligible family member and has personally incurred uncompensated expenses for their care. The West Virginia Department of Revenue will be responsible for creating rules to implement and administer the credit, which will take effect on January 1, 2027.