HI HB853

Establishes a refundable family caregiver tax credit allowing eligible taxpayers to claim up to $5,000 per taxable year for uncompensated expenses directly related to caring for a care recipient.

Limits eligibility to relatives of care recipients with federal adjusted gross income of $75,000 or less (or $125,000 for joint filers) who have undertaken care, custody, or physical assistance of the recipient.

Defines qualified expenses to include home modifications for accessibility, durable medical equipment, home care aides, respite care, adult day care, transportation, and assistive technology.

Restricts care recipients to individuals requiring at least two activities of daily living assistance, two instrumental activities of daily living assistance, or substantial cognitive impairment, who are not residing in long-term care facilities and are U.S. citizens or lawfully admitted permanent residents.

Requires the department of taxation to report annually to the legislature on the number of claimants and total cost of the tax credit, with applications due within 12 months following the close of each taxable year; applies to taxable years beginning after December 31, 2025.