Bill > HB1972

This bill establishes a new nonrefundable family caregiver tax credit for individuals who provide unpaid care to a "care recipient," which is defined as someone who is a U.S. citizen or qualified alien, does not reside in a long-term care facility, and has impairments in daily living activities or significant cognitive impairment. Eligible taxpayers, defined as relatives with a federal adjusted gross income of $75,000 or less (or $125,000 if filing jointly) who provide care, can claim a credit equal to 75% of their "qualified expenses" (which include costs for home modifications, necessary equipment and supplies, professional home care services, home care aides, respite care, adult day care, personal care attendants, transportation, health care equipment, and assistive technology) up to a maximum of $3,000 per taxable year. The bill specifies that only one taxpayer per household can claim the credit for a care recipient, and a taxpayer can only claim one credit per year regardless of the number of care recipients. The Department of Taxation is required to create necessary forms, verify claims, and report annually to the Legislature on the credit's usage and cost, with funds appropriated for the implementation of this program. This credit is nonrefundable, meaning it can reduce tax liability to $0 but any excess credit cannot be carried over to future years, and claims must be filed within twelve months of the tax year's close. The provisions related to the tax credit apply to taxable years beginning after December 31, 2026, while the appropriation for implementation takes effect on July 1, 2026, and the entire act becomes effective on January 1, 2050.