US SB3295

Creates a $2,000 tax credit per qualified relative for eligible individuals who provide at least 10 hours per week of care to a family member age 55 or older who needs substantial assistance with daily living activities

Requires the caregiver and qualified relative to share the same principal residence for at least 6 months during the tax year, with a licensed health care provider attestation confirming the relative's care needs

Phases out the credit by 1% for each dollar of adjusted gross income exceeding $75,000 ($150,000 for joint filers), limits the credit to 2 qualified relatives per taxpayer, and requires married couples to file jointly

Defines qualified relatives as parents, grandparents, or parents-in-law who are unable to perform at least 1 activity of daily living and 3 instrumental activities of daily living without substantial assistance for 180 days or longer

Applies to taxable years beginning after December 31, 2026