HB291:

Income tax, state; creates a nonrefundable tax credit for family caregivers.

Bill Summary:

Family caregiver tax credit. Creates a nonrefundable
income tax credit for taxable years 2022 through 2026 for expenses
incurred by an individual in caring for an eligible family member,
defined in the bill, who requires assistance with one or more activities
of daily living, also defined in the bill. The credit equals 50 percent
of eligible expenditures incurred by the caregiver up to $1,000. In
order to qualify for the credit, the family caregiver must (i) not
receive any compensation or reimbursement for the eligible expenditures
and (ii) have federal adjusted gross income that is no greater than
$100,000 for an individual or $200,000 for married persons. The bill
requires the Tax Commissioner to establish guidelines for claiming
the credit and provides that any unused credit may be carried forward
by the taxpayer for five taxable years following the taxable year
for which the credit was issued. The bill is a recommendation of
the Joint Commission on Health Care.