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HB 1076

TO CREATE THE CARING FOR CAREGIVERS ACT; AND TO PROVIDE AN INCOME TAX CREDIT FOR EXPENSES INCURRED IN CARING FOR CERTAIN FAMILY MEMBERS.

2025 Regular Session Introduced by Ashley Hudson

HB 1076 offers a tax credit for Arkansas family caregivers, providing up to $3,000 for expenses related to caring for eligible relatives, benefiting 267,000 caregivers.

Died in House Committee at Sine Die adjournment.
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WeVote Research Nonpartisan
Bill Summary · HB 1076

Summary of HB 1076: Caring for Caregivers Act

Purpose and Intent

House Bill 1076, titled the Caring for Caregivers Act, was introduced to provide financial relief to family caregivers in Arkansas by offering a non-refundable income tax credit for certain expenses incurred while caring for eligible family members. The bill aimed to support individuals who provide essential care to relatives who require assistance with daily activities.

Key Provisions

The main provisions of HB 1076 include:

  • Eligibility Criteria for Caregivers:

    • Must provide care for a family member who is at least 62 years old.
    • The family member must require assistance with at least two activities of daily living (ADLs), such as feeding, dressing, and personal hygiene.
    • The caregiver must have an adjusted gross income (AGI) of less than $50,000, including spousal income.
    • Caregivers must incur uncompensated expenses directly related to caregiving.

  • Eligible Expenditures:

    • The tax credit covers 50% of eligible expenditures, which can include:
    • Home improvements for mobility and safety.
    • Equipment purchases for daily living activities.
    • Costs for home care aides, adult day care, and other caregiving-related expenses.
    • The maximum credit is capped at $2,000 per tax year, or $3,000 if the care recipient is a veteran or diagnosed with dementia.

  • Credit Allocation:

    • If multiple caregivers claim the credit for the same family member, the total credit is split equally among them.
    • The total amount of tax credits available under this act is limited to $1,500,000 per calendar year, awarded on a first-come, first-served basis.

  • Implementation Timeline:

    • The act was set to be effective for tax years beginning on or after January 1, 2025.

Impact

The bill was designed to benefit approximately 267,000 Arkansans who are unpaid caregivers, as it is estimated that 13.9% of the state's population falls into this category. The average expenditure per taxpayer was projected to be around $3,475, suggesting that the $1.5 million cap would likely be reached annually.

Fiscal Considerations

  • The implementation of this tax credit was expected to reduce general revenue by $1.5 million in FY2026.
  • Additional costs for the Arkansas Department of Finance and Administration (DFA) included an estimated $8,000 for system updates and $36,000 for a new Fiscal Support Analyst position to manage the credit claims.

Legislative Status

Despite its introduction and initial support, HB 1076 died in the House Committee at sine die adjournment on May 5, 2025. This means that the bill did not progress to a vote or further consideration in the legislative process.

Conclusion

While the Caring for Caregivers Act aimed to provide essential support to family caregivers in Arkansas, it ultimately did not advance through the legislative process. The proposed tax credit was intended to alleviate some of the financial burdens faced by caregivers, highlighting the importance of supporting those who provide critical care to family members in need.

Compiled from official sources — confirm details with the bill’s official record.

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