HB1076
To Create The Caring For Caregivers Act; And To Provide An Income Tax Credit For Expenses Incurred In Caring For Certain Family Members.
AI-Generated Summary
This bill, titled the "Caring for Caregivers Act," proposes an amendment to Arkansas's income tax laws. Its main purpose is to establish a new income tax credit for individuals who serve as family caregivers. The credit is designed to offset expenses incurred while providing care to eligible family members. Eligibility for the credit is based on specific criteria for both the caregiver and the family member receiving care. Eligible expenditures include home modifications, necessary equipment, and services such as home care aides and respite care. The bill defines "activities of daily living" as a basis for determining the need for assistance. There are limitations on the amount of the credit, including a maximum per taxpayer and an overall statewide cap. The credit is subject to a total adjusted gross income threshold for the caregiver. The bill aims to provide financial relief to those dedicating their time and resources to caring for family members in their homes.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be individuals who are providing unpaid care to eligible family members and meet the specified income requirements to be considered a "family caregiver." This includes those who have incurred eligible expenditures such as home modifications, medical equipment, or services like home care aides and respite care. The eligible family members themselves would indirectly benefit through improved living conditions and access to necessary care. Additionally, veterans or individuals diagnosed with dementia who are receiving care would potentially allow their caregivers to claim a higher tax credit amount.
Who Might Suffer?
The most directly negatively impacted entities would be the state of Arkansas's revenue streams, as the creation of this tax credit would reduce the overall income tax collected. The overall statewide cap of $1,500,000 for this credit means that beyond that amount, no further credits would be awarded in a given calendar year, potentially leaving some eligible caregivers without the intended financial benefit if the cap is reached. Furthermore, individuals who are not considered family caregivers under the bill's definition, or whose expenditures do not qualify as "eligible expenditures," would not benefit from this tax credit.