HB720:

Income tax, state; creates a nonrefundable 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,
(ii) have federal adjusted gross income that is no greater than $75,000
for an individual or $150,000 for married persons, and (iii) live
in the same primary residence as the eligible family member for no
fewer than 183 days during the taxable year. 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.