Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1076 3
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By: Representative Hudson 5
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For An Act To Be Entitled 8
AN ACT TO AMEND THE INCOME TAX LAWS; TO CREATE THE 9
CARING FOR CAREGIVERS ACT; TO PROVIDE AN INCOME TAX 10
CREDIT FOR EXPENSES INCURRED IN CARING FOR CERTAIN 11
FAMILY MEMBERS; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO CREATE THE CARING FOR CAREGIVERS ACT; 16
AND TO PROVIDE AN INCOME TAX CREDIT FOR 17
EXPENSES INCURRED IN CARING FOR CERTAIN 18
FAMILY MEMBERS. 19
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
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SECTION 1. DO NOT CODIFY. Title. 23
This act shall be known and may be cited as the "Caring for Caregivers 24
Act". 25
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SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 5, is 27
amended to add an additional section to read as follows: 28
26-51-518. Caring for caregivers credit. 29
(a) As used in this section: 30
(1) "Activities of daily living" means: 31
(A) Ambulating, which is the extent of an individual's 32
ability to move from one (1) position to another and walk independently; 33
(B) Feeding, which is the ability of an individual to feed 34
himself or herself; 35
(C) Dressing, which is the ability of an individual to 36 HB1076
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select appropriate clothes and put the clothes on without aid; 1
(D) Personal hygiene, which is the ability of an 2
individual to bathe and groom himself or herself and maintain dental hygiene 3
and nail and hair care; 4
(E) Continence, which is the ability of an individual to 5
control bladder and bowel function; and 6
(F) Toileting, which is the ability of an individual to 7
get to and from the toilet without aid, use the toilet appropriately, and 8
clean himself or herself; 9
(2)(A) "Eligible expenditure" means an expense directly related 10
to assisting a family caregiver in providing care to an eligible family 11
member. 12
(B) "Eligible expenditure" includes without limitation: 13
(i) An improvement or alteration to the primary 14
residence of a family caregiver or an eligible family member to permit the 15
eligible family member to live in the residence and to remain mobile, safe, 16
and independent; 17
(ii) The purchase or lease by a family caregiver of 18
equipment, including without limitation durable medical equipment, that is 19
necessary to assist an eligible family member in carrying out one (1) or more 20
activities of daily living; and 21
(iii) Other expenses paid or incurred by a family 22
caregiver that assist the family caregiver in providing care to an eligible 23
family member, including without limitation expenses related to: 24
(a) Home care aides; 25
(b) Respite care; 26
(c) Adult day care; 27
(d) Personal care attendants; 28
(e) Healthcare equipment; and 29
(f) Technology. 30
(C) "Eligible expenditure" does not include expenses 31
incurred in carrying out general household maintenance activities, including 32
without limitation painting, plumbing services, electrical repairs, and 33
exterior maintenance; 34
(3) "Eligible family member" means an individual who: 35
(A) Is at least sixty -two (62) years of age; 36 HB1076
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(B) Requires assistance with at least two (2) activities 1
of daily living, as certified by a licensed healthcare practitioner licensed 2
under ยง 17-95-401 et seq.; 3
(C) Qualifies as a dependent, spouse, parent, or other 4
relation by blood or marriage to the family caregiver; and 5
(D) Lives in a private residential home and not in an 6
assisted living center, nursing facility, or residential care home; 7
(4) "Family caregiver" means an individual who: 8
(A) Provides care and support for an eligible family 9
member; 10
(B) Has a total adjusted gross income of less than fifty 11
thousand dollars ($50,000), including the adjusted gross income of his or her 12
spouse, if any; and 13
(C) Has personally incurred uncompensated expenses 14
directly related to the care of an eligible family member; and 15
(5) "Veteran" means a person who served in the active military, 16
naval, air, or space service and who was discharged or released from service 17
under conditions other than dishonorable. 18
(b)(1) Subject to the limitations provided in this section, there is 19
allowed an income tax credit against the income tax imposed by this chapter 20
in an amount equal to fifty percent (50%) of the eligible expenditures 21
incurred by a family caregiver for the care and support of an eligible family 22
member. 23
(2) The maximum tax credit that may be claimed by a taxpayer in 24
a tax year under this section is: 25
(A) Two thousand dollars ($2,000); or 26
(B) Three thousand dollars ($3,000), if the eligible 27
family member for whom the family caregiver has incurred eligible 28
expenditures is a veteran or has a diagnosis of dementia. 29
(3) If two (2) or more taxpayers claim the income tax credit 30
allowed under this section for the same eligible family member, the total 31
amount of the income tax credit allowed under this section shall be allocated 32
in equal amounts among the taxpayers. 33
(4)(A) The total amount of the income tax credits allowed under 34
this section shall not exceed one million five hundred thousand dollars 35
($1,500,000) in a calendar year. 36 HB1076
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(B) The income tax credit allowed under this section shall 1
be awarded in the order in which the income tax credit is claimed, up to the 2
maximum amount stated in subdivision (b)(4)(A) of this section. 3
(c) The amount of the income tax credit under this section that may be 4
claimed by the taxpayer in a tax year shall not exceed the amount of income 5
tax due by the taxpayer. 6
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SECTION 3. EFFECTIVE DATE. Section 2 of this act is effective for tax 8
years beginning on or after January 1, 2025. 9
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