Bill Text: MS HB1607 | 2020 | Regular Session | Introduced
Bill Title: Income tax; authorize a credit for certain caregiver expenses.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2020-06-03 - Died In Committee [HB1607 Detail]
Download: Mississippi-2020-HB1607-Introduced.html
MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Ways and Means
By: Representative Brown (20th)
House Bill 1607
AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR CERTAIN EXPENSES INCURRED BY A TAXPAYER IN PROVIDING CARE FOR A SPOUSE, PARENT, STEPPARENT OR OTHER RELATIVE OF THE TAXPAYER WHO IS EIGHTEEN 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) For the purposes of this section, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:
(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.
(c) "Family caregiver" means an individual who:
(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 return or for married individuals filing separate returns, or 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 an eligible care recipient. In the case of a joint or combined return, the term "family caregiver" includes both spouses.
(2) 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 amount of credit that may be utilized by a taxpayer in a taxable year shall not exceed the lesser of Five Hundred Dollars ($500.00) or the total tax liability of the taxpayer for the taxable year; or if a taxpayer is married and filing a separate return, the lesser of Two Hundred Fifty Dollars ($250.00) or the total tax liability of the taxpayer for the taxable year.
(3) Expenditures eligible to be claimed as a tax credit include:
(a) The improvement or alteration to a family caregiver's primary residence to permit an 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 a 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 under 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 under this section during a calendar year shall not exceed Five Hundred Thousand Dollars ($500,000.00). To obtain a tax credit under this section, a taxpayer must claim the tax credit in the manner prescribed by the department.
(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, 2021, and February 1st of each succeeding year thereafter, evaluating the effectiveness of the tax credit provided by this section. Such report shall be based on data available from the department for any caregiving credits. 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 on December 31, 2022.
SECTION 2. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.
SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 4. This act shall take effect and be in force from and after January, 2020.
