Arkansas bill aims to provide income tax credit for family caregivers
LITTLE ROCK, Ark. – A bill in the Arkansas legislature aims to provide an income tax credit to unpaid caregivers of elderly relatives.
Rep. Ashley Hudson, House Bill 1076's sponsor, explained that the bill hopes to provide tax credits to people 'providing care to elderly relatives, relatives with dementia, and veterans.'
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The bill has a $1.5 million cap in credits each year. The credit is voluntary and first come first served.
The maximum tax credit that can be claimed per year is 2,000 dollars or 3,000 dollars if the caregiver is caring for a veteran or their loved one has a diagnosis of dementia.
David Cook, with the Alzheimer's Association, spoke in favor of the bill.
'Family caregivers play an important role here in the natural state, just providing care for their own personal loved ones, many of them absorb multiple costs,' Cook said.
Certain requirements must be met for the caregiver and the person receiving care to be eligible.
An eligible family member as described in the bill means an individual who is at least 62 years of age, requires assistance with at least two activities of daily living, and lives in a private home.
The caregiver's income cannot be over $50,000.
'The statute is very specific in supporting those low and middle-income caregivers who are doing all they can to sustain,' Cook said. 'It's not refundable but it does give them a break if they have tax liability on their taxes.'
While no one spoke against the bill, there were questions about if the Department of Finance and Administration could safeguard against possible fraud.
Hudson said the bill's parameters are not an attractive opportunity for someone to dishonestly claim the credit.
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A representative from the Department of Finance and Administration pointed to different parts of the bill that help protect like the cap and having qualified purchases to apply.
Cook says this bill would accomplish one of their goals.
'To make sure we empower and support these family caregivers who are playing such a pivotal role in the state Arkansas in delivering care,' Cook said.
Hudson told the committee she hopes this bill could be expanded on in the future.
The Arkansas AARP says there are 420,000 family caregivers in Arkansas.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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