AZ HB2890

Creates a new income tax credit for Arizona residents who incur qualifying expenses caring for family members in their home, effective for taxable years beginning after December 31, 2024.

Taxpayers must have Arizona gross income not exceeding $200,000 (single filers or married filing separately) or $400,000 (joint filers) to qualify for the credit.

Credit amount equals 50 percent of qualifying expenses incurred during the taxable year, with a maximum credit of $1,000 per year.

Qualifying expenses include home improvements for mobility and safety, equipment purchases, home care aides, adult day care, and assistive care technology for qualifying family members who are age 18 or older and require daily living assistance.

Unused credits may be carried forward for up to five taxable years, and the credit does not apply to expenses paid or reimbursed by insurance or government sources.