Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas A Bill
2 95th General Assembly
3 Regular Session, 2025 HOUSE BILL 1076
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5 By: Representative Hudson
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8 For An Act To Be Entitled
9 AN ACT TO AMEND THE INCOME TAX LAWS; TO CREATE THE
10 CARING FOR CAREGIVERS ACT; TO PROVIDE AN INCOME TAX
11 CREDIT FOR EXPENSES INCURRED IN CARING FOR CERTAIN
12 FAMILY MEMBERS; AND FOR OTHER PURPOSES.
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15 Subtitle
16 TO CREATE THE CARING FOR CAREGIVERS ACT;
17 AND TO PROVIDE AN INCOME TAX CREDIT FOR
18 EXPENSES INCURRED IN CARING FOR CERTAIN
19 FAMILY MEMBERS.
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21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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23 SECTION 1. DO NOT CODIFY. Title.
24 This act shall be known and may be cited as the "Caring for Caregivers
25 Act".
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27 SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 5, is
28 amended to add an additional section to read as follows:
29 26-51-518. Caring for caregivers credit.
30 (a) As used in this section:
31 (1) "Activities of daily living" means:
32 (A) Ambulating, which is the extent of an individual's
33 ability to move from one (1) position to another and walk independently;
34 (B) Feeding, which is the ability of an individual to feed
35 himself or herself;
36 (C) Dressing, which is the ability of an individual to
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1 select appropriate clothes and put the clothes on without aid;
2 (D) Personal hygiene, which is the ability of an
3 individual to bathe and groom himself or herself and maintain dental hygiene
4 and nail and hair care;
5 (E) Continence, which is the ability of an individual to
6 control bladder and bowel function; and
7 (F) Toileting, which is the ability of an individual to
8 get to and from the toilet without aid, use the toilet appropriately, and
9 clean himself or herself;
10 (2)(A) "Eligible expenditure" means an expense directly related
11 to assisting a family caregiver in providing care to an eligible family
12 member.
13 (B) "Eligible expenditure" includes without limitation:
14 (i) An improvement or alteration to the primary
15 residence of a family caregiver or an eligible family member to permit the
16 eligible family member to live in the residence and to remain mobile, safe,
17 and independent;
18 (ii) The purchase or lease by a family caregiver of
19 equipment, including without limitation durable medical equipment, that is
20 necessary to assist an eligible family member in carrying out one (1) or more
21 activities of daily living; and
22 (iii) Other expenses paid or incurred by a family
23 caregiver that assist the family caregiver in providing care to an eligible
24 family member, including without limitation expenses related to:
25 (a) Home care aides;
26 (b) Respite care;
27 (c) Adult day care;
28 (d) Personal care attendants;
29 (e) Healthcare equipment; and
30 (f) Technology.
31 (C) "Eligible expenditure" does not include expenses
32 incurred in carrying out general household maintenance activities, including
33 without limitation painting, plumbing services, electrical repairs, and
34 exterior maintenance;
35 (3) "Eligible family member" means an individual who:
36 (A) Is at least sixty-two (62) years of age;
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1 (B) Requires assistance with at least two (2) activities
2 of daily living, as certified by a licensed healthcare practitioner licensed
3 under � 17-95-401 et seq.;
4 (C) Qualifies as a dependent, spouse, parent, or other
5 relation by blood or marriage to the family caregiver; and
6 (D) Lives in a private residential home and not in an
7 assisted living center, nursing facility, or residential care home;
8 (4) "Family caregiver" means an individual who:
9 (A) Provides care and support for an eligible family
10 member;
11 (B) Has a total adjusted gross income of less than fifty
12 thousand dollars ($50,000), including the adjusted gross income of his or her
13 spouse, if any; and
14 (C) Has personally incurred uncompensated expenses
15 directly related to the care of an eligible family member; and
16 (5) "Veteran" means a person who served in the active military,
17 naval, air, or space service and who was discharged or released from service
18 under conditions other than dishonorable.
19 (b)(1) Subject to the limitations provided in this section, there is
20 allowed an income tax credit against the income tax imposed by this chapter
21 in an amount equal to fifty percent (50%) of the eligible expenditures
22 incurred by a family caregiver for the care and support of an eligible family
23 member.
24 (2) The maximum tax credit that may be claimed by a taxpayer in
25 a tax year under this section is:
26 (A) Two thousand dollars ($2,000); or
27 (B) Three thousand dollars ($3,000), if the eligible
28 family member for whom the family caregiver has incurred eligible
29 expenditures is a veteran or has a diagnosis of dementia.
30 (3) If two (2) or more taxpayers claim the income tax credit
31 allowed under this section for the same eligible family member, the total
32 amount of the income tax credit allowed under this section shall be allocated
33 in equal amounts among the taxpayers.
34 (4)(A) The total amount of the income tax credits allowed under
35 this section shall not exceed one million five hundred thousand dollars
36 ($1,500,000) in a calendar year.
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1 (B) The income tax credit allowed under this section shall
2 be awarded in the order in which the income tax credit is claimed, up to the
3 maximum amount stated in subdivision (b)(4)(A) of this section.
4 (c) The amount of the income tax credit under this section that may be
5 claimed by the taxpayer in a tax year shall not exceed the amount of income
6 tax due by the taxpayer.
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8 SECTION 3. EFFECTIVE DATE. Section 2 of this act is effective for tax
9 years beginning on or after January 1, 2025.
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4 01/06/2025 9:58:12 AM JLL084Every fact on this page links to its source, starting with the official bill record.