If enacted, HB978 could significantly alter the financial landscape for caregivers in Maryland. Eligible caregivers may claim a credit amounting to 30% of their qualified expenses exceeding $2,000, capped at a maximum of $5,000 or the total state income tax owed, whichever is less. This provision is expected to offer substantial financial support, particularly for middle-income earners facing the high costs of caregiving. It recognizes the vital role caregivers play in the state by providing necessary assistance and support to individuals with long-term care needs.
Summary
House Bill 978 introduces a caregiver tax credit aimed at providing financial relief to individuals who incur expenses while caring for family members with long-term care needs. This bill allows eligible caregivers to claim a credit against their state income tax for qualifying expenses, which can include a wide range of services and modifications that assist these individuals in their daily living activities. The credit is particularly targeted at those who provide care to family members who qualify due to functional limitations or cognitive impairments.
Contention
While proponents of HB978 argue that this tax credit will ease the financial burdens faced by families providing care for loved ones, there may be concerns regarding the eligibility criteria and the extent of the expenses that can be claimed. The means testing incorporated in the bill, where credits are reduced based on the caregiver's adjusted gross income, could exclude some individuals who may benefit from the tax credit. This aspect has raised questions about whether the bill adequately addresses the needs of all caregivers, especially those on the lower end of the income spectrum.