Oklahoma § 68-2357.801 - Family caregiver credit

§ 68-2357.801. Family caregiver credit

A. As used in this section:

1. "Activities of daily living (ADL)" shall include:

a.

ambulating, which is the extent of an individual's

ability to move from one position to another and walk

independently,

b.

feeding, which is the ability of an individual to feed

oneself,

c.

dressing, which is the ability to select appropriate

clothes and to put the clothes on without aid,

d.

personal hygiene, which is the ability to bathe and

groom oneself and maintain dental hygiene and nail and

hair care,

e.

continence, which is the ability to control bladder

and bowel function, and

f.

toileting, which is the ability to get to and from the

toilet without aid, using it appropriately, and

cleaning oneself;

2. "Eligible expenditure" shall include:

a.

the improvement or alteration to the family

caregiver's or eligible family member's primary

residence to permit the eligible family member to live

in the residence and to remain mobile, safe, and

independent,

b.

the family caregiver's purchase or lease of equipment,

including but not limited to durable medical

equipment, that is necessary to assist an eligible

family member in carrying out one or more activities

of daily living (ADL), and

Oklahoma Statutes - Title 68. Revenue and Taxation

c.

other paid or incurred expenses by the family

caregiver that assist the family caregiver in

providing care to an eligible family member, such as

expenditures related to:

(1) hiring a home care aide,

(2) respite care,

(3) adult day care,

(4) personal care attendants,

(5) health care equipment, and

(6) technology.

The eligible expenditure must be directly related to assisting the

family caregiver in providing care to an eligible family member.

Eligible expenditure shall not include the carrying out of general

household maintenance activities such as painting, plumbing,

electrical repairs, or exterior maintenance;

3. "Eligible family member" shall mean an individual who:

a.

is sixty-two (62) years of age or older,

b.

requires assistance with at least two activities of

daily living (ADL) as certified by a licensed health

care provider, as defined in paragraph 1 of Section

3090.2 of Title 63 of the Oklahoma Statutes,

c.

qualifies as a dependent, spouse, parent, or other

relation by blood or marriage to the family caregiver,

and

d.

lives in a private residential home and not in an

assisted living center, nursing facility, or

residential care home; and

4. "Family caregiver" shall mean an individual:

a.

providing care and support for an eligible family

member,

b.

who has a federal adjusted gross income of less than

Fifty Thousand Dollars ($50,000.00) for an individual

and less than One Hundred Thousand Dollars

($100,000.00) for a couple filing jointly, and

c.

who has personally incurred uncompensated expenses

directly related to the care of an eligible family

member.

B. For taxable years beginning after December 31, 2023, there

shall be allowed a credit against the tax imposed pursuant to

Section 2355 of Title 68 of the Oklahoma Statutes in the amount of

fifty percent (50%) for eligible expenditures incurred by a family

caregiver for the care and support of an eligible family member.

C. The maximum allowable credit authorized by this section

shall be Two Thousand Dollars ($2,000.00) unless the eligible family

member is a veteran or has a diagnosis of dementia in which case the

maximum allowable credit shall be Three Thousand Dollars

($3,000.00). If two or more family caregivers claim the tax credit

Oklahoma Statutes - Title 68. Revenue and Taxation

authorized by this section for the same eligible family member, the

maximum allowable credit shall be allocated in equal amounts between

each of the family caregivers.

D. The credit authorized by this section may not be used to

reduce the tax liability of the taxpayer to less than zero (0). The

credit shall not be carried over.

E. The total credits authorized pursuant to this section for

all taxpayers shall not exceed One Million Five Hundred Thousand

Dollars ($1,500,000.00) annually. In the event the total tax

credits authorized by this section exceed One Million Five Hundred

Thousand Dollars ($1,500,000.00) annually in any calendar year, the

Oklahoma Tax Commission shall permit any excess over One Million

Five Hundred Thousand Dollars ($1,500,000.00) annually, but shall

factor such excess into the percentage adjustment formula for

subsequent years. The Oklahoma Tax Commission shall annually

calculate and publish by the first day of the affected year a

percentage by which the credits authorized by this section shall be

reduced so the total amount of credits used to offset tax does not

exceed One Million Five Hundred Thousand Dollars ($1,500,000.00)

annually per year. The formula to be used for the percentage

adjustment shall be One Million Five Hundred Thousand Dollars

($1,500,000.00) annually divided by the credits claimed in the

second preceding year.

F. The Oklahoma Tax Commission shall promulgate rules necessary

to implement and administer the credit authorized by this section.

Added by Laws 2023, 1st Ex. Sess., c. 20, § 2, eff. Jan. 1, 2024.