The passage of AB 856 would impact numerous aspects of state law regarding taxation and elderly care. By incentivizing home care over institutionalization, it aims to reduce the financial burden of healthcare on the state and encourage cost-effective alternatives to nursing homes, which can be significantly more expensive. The bill is also intended to support a growing home care industry, potentially leading to increased job creation within this sector as more families utilize such services to support their loved ones.
Summary
Assembly Bill 856, introduced by Assembly Member Brough, is designed to provide a tax credit against personal income tax for home care services. This legislation establishes a credit of 25% for amounts paid for home care services, not exceeding $5,000, for taxpayers with certain income thresholds. The home care services defined by the bill include various forms of nonmedical assistance, such as bathing, dressing, meal preparation, and companionship, primarily aimed at supporting elderly or disabled individuals who wish to remain in their homes rather than move to assisted living facilities.
Contention
While AB 856 has garnered support for easing the financial constraints on families providing care to elderly members, it also faces scrutiny and opposition regarding its effectiveness and implementation. Critics may question how well the tax credit will be utilized, given the complexities involved in proving eligibility and the requirement for taxpayers to submit proof of costs paid. Moreover, the bill includes a sunset clause that will repeal the provisions by December 1, 2024, raising concerns about its long-term sustainability and the broader implications for those relying on home care services.
Voluntary tax contributions: California Firefighters’ Memorial Voluntary Tax Contribution Fund: California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund.