Oklahoma will be the first state in the nation to adopt an expansive caregiver tax credit after the Caring for Caregivers Act goes into effect Jan. 1, 2024.
The bill, passed this month in the Legislature’s special session, was championed by House Majority Leader Tammy West, R-Oklahoma City, in the House and carried by Sen. John Michael Montgomery, R-Lawton, in the Senate.
HB1029XX – The Caring for Caregivers Act – will allow a tax credit up to 50 percent of eligible caregiver costs, capped at $2,000 per year for most participants and $3,000 per year for those caring for veterans or people with a dementia-related diagnosis. Eligible expenses include home modifications such as installing a ramp, durable medical equipment, assistive technologies and home health.
The bill specifies the family caregiver must have a federal adjusted gross income below $50,000 for single filers or $100,000 for joint filers. The credit is for out-of-pocket costs incurred by the unpaid family caregiver for a limited set of services. It is capped at $1.5 million per year.
Other states offer smaller tax credits to certain caregivers or for expenses like home modifications, but according to AARP, Oklahoma is the first to adopt the more expansive credit.
West said the bill is important for those who are caring for older loved ones in their homes.
“This will provide these unpaid family caregivers much-needed financial relief and keep loved ones at home and out of costly taxpayer-funded nursing home,” she said. “This presents a great solution that lets Oklahomans take care of their own without having to rely on the government to take charge of their family members.”