Senate Bill 2991

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 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;

(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; and

(iv) Is a resident of the State of Mississippi for the taxable year.

(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 Fifty-five Thousand Dollars ($55,000.00) if filing an individual or separate return, or less than One Hundred Ten Thousand Dollars ($110,000.00) if filing a joint or combined return; and

(iv) Incurs uncompensated expenses directly related to the care of the eligible care recipient or recipients. 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, in 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 Five Hundred Dollars ($500.00) or, if a family caregiver is married and filing a separate return, Two Hundred Fifty Dollars ($250.00), in any taxable year.

(b) A taxpayer is not entitled to a refund, carryback or carryforward of any credit under this section.

(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.

(6) The aggregate amount of tax credits allowed pursuant to this section shall be Five Hundred Thousand Dollars ($500,000.00) each year during the period 2020 through 2022. To obtain a tax credit under this section, a taxpayer must claim the tax credit in the manner prescribed by the department. Once the credits allocated exceed the limit established in this subsection, the department shall cease to allocate tax credits to taxpayers.

(7) The department shall submit to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives an annual report by February 1 of each year evaluating the effectiveness of the caregiving tax credit provided by this section. Such report shall be based on data available from the department for any caregiving credits. Notwithstanding any provision of law to the contrary, the information contained in the report shall be public information. The report shall include recommendations for changes in the calculation or administration of the credit proposed by the department that are deemed useful and appropriate.

(8) This section shall stand repealed from and after January 1, 2023.

SECTION 2. Section 1 of this act shall be codified in

Title 27, Chapter 7, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after January 1, 2020.