If enacted, this legislation would amend Chapter 62 of the General Laws by adding this new tax credit, thus potentially alleviating some financial burden on family caregivers who undertake these responsibilities. Eligible expenses include improvements made to the caregiver’s residence for the benefit of the care recipient, purchase or leasing of necessary equipment, and costs for hiring additional support. By recognizing and supporting the efforts of caregivers, the bill seeks to enhance the state’s approach towards care provision and support for families managing caregiving needs.
Summary
House Bill 2871, introduced by Representative David Paul Linsky, proposes the establishment of a family caregiver tax credit in Massachusetts. This measure aims to financially support individuals who provide care to family members requiring assistance with activities of daily living (ADLs). The bill defines eligible family members and establishes income thresholds for claimants, specifically targeting those with a federal adjusted gross income of less than $75,000 for individuals and $150,000 for couples. The proposed credit amounts to 50% of the qualifying expenses incurred, up to a maximum of $3,000 per taxable year.
Contention
While the bill presents a progressive step towards recognizing the value of caregivers, potential debates around its implementation may center on the income thresholds and the complexity of qualifying expenses. Opponents may argue that the tax credit may not adequately cover the varied costs associated with caregiving, and questions may arise regarding whether the proposed maximum amount is sufficient. Further, there could be discussions about the administrative burden on the Department of Revenue related to evaluating claims and ensuring compliance with the new tax provisions.
Revenue and taxation; creating the Caring for Caregivers Act; creating family caregiver tax credit; credit caps; authorizing Tax Commission to promulgate rules; effective date.