Senate Bill 2086

AN ACT TO AUTHORIZE AN INCOME TAX CREDIT TO TAXPAYERS FOR CERTAIN EXPENSES INCURRED IN PROVIDING CARE FOR A SPOUSE, PARENT, STEPPARENT OR OTHER RELATIVE OF THE TAXPAYER WHO IS 18 YEARS OF AGE OR OLDER AND WHO HAS BEEN CERTIFIED BY A LICENSED HEALTH-CARE PROVIDER AS BEING AN INDIVIDUAL REQUIRING ASSISTANCE WITH AT LEAST ONE ACTIVITY OF DAILY LIVING; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) As used in this section:

(a) "Activities of daily living" means the following self-care tasks: bathing, dressing, eating, personal hygiene, transferring, ambulation, toileting and maintaining continence.

(b) "Eligible care recipient" means an individual who:

(i) Is at least eighteen (18) years of age during a taxable year;

(ii) Requires assistance with at least one (1) activity of daily living, as certified by a health-care provider as defined in Section 41-41-203; and

(iii) Qualifies as a dependent, spouse, parent or other relation by blood or marriage, including an in-law, grandparent, grandchild, stepparent, aunt, uncle, niece or nephew of the family caregiver.

(i) Is a resident taxpayer for the taxable year;

(ii) Provides care to one or more eligible care recipients during the taxable year;

(iii) Has a federal adjusted gross income of less than Seventy-five Thousand Dollars ($75,000.00) if filing an individual return or for married individuals filing separate returns, or One Hundred Fifty Thousand Dollars ($150,000.00) if filing a joint or combined return; and

(iv) Incurs uncompensated expenses directly related to the care of the eligible care recipient(s).

In the case of a joint or combined return, the term "family caregiver" includes both spouses.

(2) (a) A family caregiver shall be allowed a credit against the taxes imposed by this chapter, an amount equal to fifty percent (50%) of the eligible expenses incurred by the family caregiver during the taxable year. The maximum allowable credit shall not exceed One Thousand Dollars ($1,000.00) in any taxable year.

(b) A taxpayer is not entitled to a refund, carryback or carryforward of any credit under this section. To obtain a tax credit under this section, a taxpayer must claim the tax credit in the manner prescribed by the department.

(3) Expenditures eligible to be claimed for the tax credit include:

(a) The improvement or alteration to the family caregiver's primary residence to permit the eligible care recipient to remain mobile, safe and independent;

(b) The purchase or lease of equipment that is necessary to assist an eligible care recipient in carrying out one or more activities of daily living; and

(c) Other goods, services or supports that assist the family caregiver in providing care to an eligible care recipient, such as expenditures related to hiring a home care aide or personal care attendant, respite care, adult day care, transportation, legal and financial services, and assistive technology.

(4) Only one (1) taxpayer may claim a tax credit in a taxable year for eligible expenses under this section. If two (2) or more qualified taxpayers claim a credit in accordance with this section for the same eligible care recipient, the total amount of the credit allowed shall be allocated in equal amounts between or among each of the qualified taxpayers.

(5) A taxpayer may not claim a tax credit under this section for expenses incurred in carrying out general household maintenance activities, including painting, plumbing, electrical repairs and exterior maintenance.

SECTION 2. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after January 1, 2019.