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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 1368 By: West (Tammy)
AS INTRODUCED
An Act relating to revenue and taxation; creating the
Caring for Caregivers Act; defining terms; creating
family caregiver tax credit; providing for maximum
allowable credit; providing for multiple caregivers;
providing for application of credit; creating annual
credit caps; authorizing Oklahoma Tax Commission to
promulgate rules; prov iding for noncodification;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the "Caring for
Caregivers Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.801 of Title 68, unless
there is created a duplication in numbering, reads a s follows:
A. As used in this section:
1. "Activities of daily living (ADL) " shall include:
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a. ambulating, which is the extent of an individual 's
ability to move from one position to another and walk
independently,
b. feeding, which is the ability of an individual to feed
oneself,
c. dressing, which is the ability to select approp riate
clothes and to put the clothes on without aid,
d. personal hygiene, which is the ability to bathe and
groom oneself and maintain dental hygiene and nail and
hair care,
e. continence, which is the ability to control bladder
and bowel function, and
f. toileting, which is the ability to get to and from the
toilet without aid, using it appropriately, and
cleaning oneself;
2. "Eligible expenditure" shall include:
a. the improvement or alteration to the family
caregiver's or eligible family member's primary
residence to permit the eligible family member to live
in the residence and to remain mobile, safe, and
independent,
b. the family caregiver's purchase or lease of equipment ,
including but not limited to durable medical
equipment, that is necessary to assist a n eligible
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family member in carrying out one or mor e activities
of daily living (ADL), and
c. other paid or incurred expenses by the family
caregiver that assist the family caregiver in
providing care to an eligible family member, such as
expenditures related to:
(1) hiring a home care aide,
(2) respite care,
(3) adult day care,
(4) personal care attendants,
(5) health care equipment, and
(6) technology.
The eligible expendi ture must be directly related to assisting the
family caregiver in providing care to an eligible family member.
Eligible expenditure shall not include the car rying out of general
household maintenance activities such as painting, plumbing,
electrical repairs, or exterior maintenance;
3. "Eligible family member" shall mean an individual who:
a. is sixty-two (62) years of age or older,
b. requires assistance wit h at least two activities of
daily living (ADL) as certified by a licensed health
care provider, as defined in paragraph 1 of Section
3090.2 of Title 63 of the Oklahoma Statutes,
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c. qualifies as a dependent, spouse, parent , or other
relation by blood or marriage to the family caregiver ,
and
d. lives in a private residential home and not in an
assisted living center, nursing facility, or
residential care home; and
4. "Family caregiver" shall mean an individual:
a. providing care and support for a n eligible family
member,
b. who has a federal adjusted gross income of less than
Fifty Thousand Dollars ( $50,000.00) for an individual
and less than One Hundred Thousand Dollars
($100,000.00) for a couple filing jointly, and
c. who has personally incurred uncompensated expenses
directly related to the car e of an eligible family
member.
B. For taxable years beginning after December 31, 2023, there
shall be allowed a credit against the tax impo sed pursuant to
Section 2355 of Title 68 of the Oklahoma Statutes in the amount o f
fifty percent (50%) for eligible expenditures incurred by a family
caregiver for the care and support of an eligible family member.
C. The maximum allowable credit authorized by this section
shall be Two Thousand Dollars ($2,000.00) unless the eligible family
member is a veteran or has a diagnosis of dementia in which case the
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maximum allowable credit shall be Three Thousand Dollars
($3,000.00). If two or more family caregi vers claim the tax credit
authorized by this section for the same eligible family member, the
maximum allowable credit shall be allocated in equal amounts between
each of the family caregivers.
D. The credit authorized by this section may not be used to
reduce the tax liability of the taxpayer to less than zero (0). The
credit shall not be carried over.
E. The total credits authorized pursuant to this section for
all taxpayers shall not exceed One Million Five Hundred Thousand
Dollars ($1,500,000.00) ann ually. In the event the total tax
credits authorized by this section exceed One Million Five Hundred
Thousand Dollars ($1,500,000.00) annually in any calendar year, the
Tax Commission shall permit any excess over One Million Five Hundred
Thousand Dollars ($1,500,000.00) annually, but shall factor such
excess into the percentage adjust ment formula for subsequent yea rs.
The Tax Commission shall annually calculate and publish by the first
day of the affected year a percentage by which the credits
authorized by this section shall be reduced so the total amount of
credits used to offset ta x does not exceed One Million F ive Hundred
Thousand Dollars ($1,500,000.00) annually per ye ar. The formula to
be used for the percentage adjustment shall be One Million Five
Hundred Thousand Dollars ($1,500,000.00) annually divided by the
credits claimed in the second preceding year.
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F. The Oklahoma Tax Commission shall promulgate rules necess ary
to implement and administer the credit authorized by this section.
SECTION 3. This act shall become effective January 1, 202 4.
59-1-6594 CMA 01/06/23