AGE Act of 2024 Americans Giving Care to Elders Act of 2024
Impact
The introduction of SB5163 could have substantial implications for state laws relating to eldercare and tax benefits. By offering tax credits for caregiving expenses, the bill aims to incentivize families to provide care for aging relatives at home instead of resorting to institutional care. This measure reflects a recognition of the financial and emotional strain that caregiving can impose on families while aligning state tax codes to support familial structures in a way that addresses the growing needs of an aging population.
Summary
SB5163, known as the Americans Giving Care to Elders Act of 2024 (AGE Act), is a legislative proposal aimed at amending the Internal Revenue Code of 1986 to provide an income tax credit specifically for eldercare expenses. This bill introduces a tax benefit equal to 20% of the qualifying eldercare expenses paid by individuals caring for qualifying individuals who are aged 65 or older and require assistance with daily activities. A key provision includes a cap on the eligible expenses, limiting them to a maximum of $6,000 annually, which can significantly alleviate the financial burden on families providing care for elderly relatives.
Contention
Despite its potential benefits, the bill does face points of contention, primarily concerning the cap on reimbursable eldercare expenses and eligibility criteria. Critics argue that the $6,000 cap may not be sufficient for many families, especially in regions where eldercare services are more expensive. Additionally, concerns have been raised regarding the income threshold at which the tax credit begins to phase out, potentially excluding middle-income families who also struggle with eldercare costs. Such provisions could spark debate over adequate support for all families in need of caregiving assistance.