Credit for Caring Act Reintroduced – Seeks to Provide Tax Relief for Family Caregivers

Recently, Sen. Michael Bennet (D-Colorado) reintroduced the Credit for Caring Act (S.3702), a bipartisan bill that would establish a nonrefundable federal tax credit of up to $5,000, covering up to 30% of qualified expenses exceeding $2,000. These expenses cover vital aspects of caregiving, including home care aides, adult day care, home modifications, assistive technology, respite care, and transportation.

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This legislation is important as it seeks to alleviate the financial burden on family caregivers, who often make significant financial sacrifices to support their loved ones. The bill is sponsored by U.S. Senators Michael Bennet (D-Colorado), Shelley Moore Capito (R-West Virginia), Elizabeth Warren (D-Massachusetts), Susan Collins (R-Maine), Maggie Hassan (D-New Hampshire), and Lisa Murkowski (R-Alaska) along with U.S. Representatives Linda Sánchez (D-California) and Mike Carey (R-Ohio).

The bill does not require the caregiver and the family member to live in the same house, but it does require the caregiver to incur the expenses to qualify for the tax credit. This legislation is crucial for family caregivers, who selflessly make sacrifices to provide essential care for their loved ones. HCAOA will monitor its progress as it is referred to committees in the House and Senate.

To view the text of the bill, click here.