Bill > SB2863

This bill establishes a new family caregiver tax credit for individuals who provide unpaid care to a "care recipient," defined as someone who is a U.S. citizen or qualified alien, does not live in a long-term care facility, and has impairments in daily living activities or significant cognitive impairment. To qualify for the credit, an "eligible taxpayer" must be a relative of the care recipient with a federal adjusted gross income of $75,000 or less (or $125,000 if filing jointly) and must have personally incurred uncompensated "qualified expenses" for the care, which can include home modifications, necessary equipment, home care aides, respite care, adult day care, transportation, and assistive technology, up to a maximum of $3,000 per taxable year. The credit is nonrefundable, meaning it cannot reduce tax liability below zero and any excess cannot be carried over to future years, and only one taxpayer per household can claim the credit for a given care recipient. The Department of Taxation will be responsible for creating necessary forms, verifying claims, and reporting annually to the Legislature on the credit's usage and cost, with the credit applying to taxable years beginning after December 31, 2026, and an appropriation of $3.1 million is made for the fiscal year 2026-2027 to implement and administer this new tax credit.