GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 295*

Short Title:  Elderly Care Tax Credit.	(Public)
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Sponsors: Representatives Wiser, Diamont, S. Thompson; Bowman, P. Wilson, Justus, Wood, and Buchanan.
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Referred to:  Human Resources.
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February 20, 1989

A BILL TO BE ENTITLED
AN ACT TO ALLOW AN INCOME TAX CREDIT TO A HOUSEHOLD WHEN ONE SPOUSE PROVIDES FULL-TIME CARE FOR A PARENT WHO WOULD OTHERWISE BE IN A NURSING HOME.
The General Assembly of North Carolina enacts:
Section 1.  Division II of Article 4 of Chapter 105 of the General Statutes is amended by adding after G.S. 104-151.17 a new section to read:
"§ 105-151.18.  Credit for care for the elderly.
(a)	A taxpayer who is married and living with his spouse during the entire taxable year, whose spouse is not gainfully employed or a student at an educational institution at any time during the taxable year, and whose spouse provides care for a qualifying parent of the spouse or of the taxpayer, is allowed as a credit against the tax imposed by this Division three hundred dollars ($300.00) for each taxable year.  The amount of the credit allowed by this section shall be reduced by an amount equal to seven percent (7%) of the total value of all gifts of property, both tangible and intangible, received by the taxpayer or the taxpayer's spouse during the taxable year from the qualifying parent or the qualifying parent's spouse.
(b)	The term ‘qualifying parent' means a parent of the taxpayer or the taxpayer's spouse who (i) lives with the taxpayer and the taxpayer's spouse during the entire taxable year, (ii) is 65 years of age or older, and (iii) is eligible for nursing home care.
(c)	To be eligible for the credit allowed by this section, the taxpayer and the taxpayer's spouse must file a combined return for the taxable year and must attach to the tax return a physician's order or other statement from a physician certifying that the qualifying parent is eligible for nursing home care.  A taxpayer who takes a deduction under G.S. 105-147(28) for amounts paid for the maintenance and care of a qualifying parent may not claim a credit under this section with respect to the qualifying parent.
(d)	The credit allowed by this section may not exceed the amount of tax imposed by this Division for the taxable year reduced by the sum of all credits allowable under this Division, except for payments of tax made by or on behalf of the taxpayer."
Sec. 2.  G.S. 105-147(28) reads as rewritten:
"(28)	Amounts paid, not to exceed three thousand dollars  ($3,000), for the maintenance and care of the individual's parent or parents.  The deduction allowed by this subdivision shall be reduced by the amount by which the total value of all gifts of property, both tangible and intangible, received during the taxable year from the parent or parents for whom this deduction is claimed exceeds one hundred dollars ($100.00).
	If the individual makes payments for the maintenance and care of one parent, the individual may take this deduction only if:
a.	The individual does not take an exemption for the parent  under G.S. 105-149(a)(5) or a credit with respect to the parent under G.S. 105-151.18;
b.	The parent is not in a public or private institution;
c.	The parent's disposable income, as defined in G.S. 105- 277.1(b)(2), does not exceed nine thousand dollars ($9,000);
d.	The parent is aged 65 or older; and
e.	The parent is a North Carolina resident.
If the individual makes payments for the maintenance and care of both parents, the individual may take this deduction only if:
a.	The individual does not take an exemption for either parent under G.S. 105-149(a)(5) or a credit with respect to either parent under G.S. 105-151.18;
b.	Neither parent is in a public or private institution;
c.	The parents' combined disposable income, as defined in G.S. 105-277.1(b)(2), does not exceed nine thousand dollars ($9,000);
d.	At least one parent is aged 65 or over; and
e.	Both parents are North Carolina residents."
Sec. 3.  This act is effective for taxable years beginning on or after January 1, 1989.