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REFERENCE TITLE: tax credit; care giving expenses |
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State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023
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HB 2715 |
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Introduced by Representatives Hernandez M: Aguilar, Cano, Contreras L, Hernandez A, Hernandez C, Hernandez L, Ortiz, Quiñonez, Sandoval, Stahl Hamilton, Travers
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An Act
amending section 43-222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43-1080; relating to individual income tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 43-222, Arizona Revised Statutes, is amended to read:
43-222. Income tax credit review schedule
The joint legislative income tax credit review committee shall review the following income tax credits:
1. For years ending in 0 and 5, sections 43-1079.01, 43-1088, 43-1089.04, 43-1167.01 and 43-1175.
2. For years ending in 1 and 6, sections 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03 and 43-1183.
3. For years ending in 2 and 7, sections 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, and 43-1181.
4. For years ending in 3 and 8, sections 43-1074.01, 43-1080, 43-1168, 43-1170 and 43-1178.
5. For years ending in 4 and 9, sections 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05 and 43-1184.
Sec. 2. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1080, to read:
43-1080. Generational income tax credit; definition
A. For taxable years beginning from and after December 31, 2023 and subject to the terms and conditions of this section, a credit is allowed against the taxes imposed by this chapter for taxpayers who incur qualifying expenses during the taxable year for the care and support of qualifying family members in the taxpayer's home.
B. To qualify for the credit under this section:
1. the taxpayer must file a return as a resident of this state.
2. The taxpayer's Arizona gross income in the taxable year may not exceed:
(a) $200,000 in the case of a single person or a married person filing separately.
(b) $400,000 in the case of a married couple filing a joint return.
3. The taxpayer must incur qualifying expenses during the taxable year for the care of one or more qualifying family members.
C. The amount of the credit is equal to fifty percent of the qualifying expenses incurred during the taxable year but not more than $1,000.
D. For the purposes of this section:
1. Qualifying expenses must relate directly to the care or support of a qualifying family member and include:
(a) The improvement or alteration of the taxpayer's primary residence, whether owned or rented by the taxpayer, to enable or assist the qualifying family member to be mobile, safe or independent.
(b) The purchase or lease of equipment to enable or assist the qualifying family member to carry out one or more activities of daily living.
(c) The acquisition of other goods, services or support to assist the taxpayer in caring for the qualifying family member, including employing a home care aide or personal care attendant or securing adult day care, transportation, legal or financial services or assistive care technology.
2. Qualifying expenses do not include:
(a) Ordinary household maintenance or repair that is not directly related to and necessary for the care of the qualifying family member.
(b) Any amount that is paid or reimbursed by insurance or by the federal government, this state or a political subdivision of this state.
3. In the case of married persons filing separately, only one spouse may claim the credit under this section.
4. If more than one taxpayer qualifies for credit under this section with respect to the same qualifying family member in the same taxable year, the amount of the credit, within the limits prescribed by subsection C of this section, shall be apportioned between or among the qualifying taxpayers according to the respective expense amounts incurred.
E. If the allowable amount of the credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset taxes under this title forward for not more than five taxable years' income tax liability.
F. For the purposes of this section, "qualifying family member" means an individual who meets all of the following requirements:
1. Is at least eighteen years of age during the taxable year.
2. Requires assistance with one or more daily living activities.
3. Is the taxpayer's spouse or the taxpayer's or spouse's descendant, stepchild, parent, stepparent, grandparent, sibling, uncle or aunt, whether of the whole or half blood or by adoption.
Sec. 3. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the legislature enacts section 43-1080, Arizona Revised Statutes, as added by this act, to mitigate the costs incurred by taxpayers who provide unreimbursed care in their homes for their adult family members who require assistance in their daily activities.