To establish the family caregiving tax credit
If passed, this legislation would amend Chapter 62 of Massachusetts General Laws by introducing a new subsection that outlines the parameters for eligible caregivers and expenses. Caregivers with an adjusted gross income of less than $75,000 or $150,000 for couples would be able to benefit from this credit, which could directly alleviate some of the financial burdens associated with caregiving. The bill is constructed to enable caregivers to maintain family members' mobility, safety, and independence, ultimately enhancing the quality of life for both the caregiver and the care recipient.
House Bill 2932 seeks to establish a family caregiving tax credit in Massachusetts, aimed at providing financial support for individuals who care for eligible family members requiring assistance with everyday activities. Under this bill, caregivers can claim a maximum refundable tax credit of $1,500 for eligible expenditures incurred in providing care. This includes costs related to home modifications, necessary equipment purchases, and other supportive services, though certain household maintenance expenses are explicitly excluded.
As with many tax incentive proposals, there may be debates surrounding the bill's potential to either sufficiently address the unique needs of caregivers or create inequities in support among different socioeconomic groups. Some may express concerns about ensuring that the tax credit truly benefits those in need, while others might argue about the administrative costs associated with implementing and monitoring the program. Additionally, consideration is given to how tax credits will be allocated when multiple caregivers claim expenses for the same family member, as outlined in the bill's provisions.
The bill mandates the establishment of a Caregiver Tax Credit Evaluation Committee to assess the effectiveness of the tax credit every five years following its enactment. This committee will review the original intent of the credit, its execution, and its alignment with the evolving needs of families and caregivers. The findings and recommendations will be reported to legislative leaders, ensuring that the program remains relevant and effective for its intended purposes.