An Act To Create a Family Caregiver Income Tax Credit
Sec. 1. 36 MRSA §5219-OO is enacted to read:
§ 5219-OO. Family caregiver credit
(1) An improvement of or alteration to a family caregiver's primary residence to permit an eligible family member to remain mobile, safe and independent;
(2) A purchase or lease of equipment that is necessary to assist an eligible family member in carrying out one or more activities of daily living; and
(3) Other goods, services or supports that assist a family caregiver to provide care to an eligible family member, such as expenditures related to hiring a home care aide or personal care attendant, respite care, adult day care and transportation and for assistive technology.
"Eligible expenditure" does not include general household maintenance activities, including painting, plumbing, electrical repairs or exterior maintenance.
(1) Is 18 years of age or older during the taxable year;
(2) Requires assistance with at least one activity of daily living as certified by an individual licensed as a health care provider under Title 32, chapter 31, subchapter 3 or 4; Title 32, chapter 36, subchapter 4; or Title 32, chapter 48, subchapter 2; and
(3) Is a dependent, spouse, registered domestic partner, parent, sibling or other relation by blood or marriage, including a grandparent, grandchild, stepparent, aunt, uncle, niece or nephew, of the family caregiver or a registered domestic partner of the family caregiver.
(1) Provides care for one or more eligible family members;
(2) As a single individual or married person filing separately, has a federal adjusted gross income of less than $75,000; or, as an individual filing as a head of household or as an individual filing a married joint return or as a surviving spouse, has a federal adjusted gross income of less than $150,000; and
(3) Makes uncompensated eligible expenditures directly related to the care of an eligible family member.
SUMMARY
This bill provides an income tax credit for certain eligible expenditures incurred by a family caregiver for the care and support of an eligible family member 18 years of age or older. Eligible expenditures include the improvement of or alteration to the caregiver's primary residence to permit the eligible family member to remain mobile, safe and independent in the home and community; the caregiver's purchase or lease of equipment necessary to assist the eligible family member in carrying out one or more activities of daily living; and costs incurred to assist the caregiver to provide care to an eligible family member, such as expenditures related to hiring a home care aide, respite care, adult day care and transportation and for technology to assist the family caregiver to care for the eligible family member.
To be eligible for the tax credit, a family caregiver claiming the credit must have a federal adjusted gross income of less than $75,000 if the family caregiver is filing as a single individual or as a married person filing separately and $150,000 if the family caregiver is filing as a head of household or is filing a married joint return.
An eligible family member must require assistance with at least one activity of daily living, as certified by a qualified licensed health care practitioner, and qualify as a dependent of, spouse of, registered domestic partner of, parent of or other relation by blood or marriage to the family caregiver or a registered domestic partner of the family caregiver.
The amount of the credit is equal to the eligible expenditures incurred by the eligible caregiver during the taxable year up to a maximum of $2,500.