Income tax, state; creates a nonrefundable credit for family caregivers.
This bill represents a significant change in Virginia's tax legislation as it creates a support mechanism for family caregivers, recognizing the vital role they play in caring for elderly and disabled relatives. By establishing a framework for tax credits, this legislation aims to encourage families to provide care and maintain independence for their loved ones. If enacted, it would amend the Code of Virginia to introduce these new provisions specifically for caregivers, potentially leading to greater financial relief and making caregiving more sustainable over time.
SB632 introduces a nonrefundable tax credit aimed at supporting family caregivers who provide care to eligible family members with daily living activities. The bill specifies that the credit will cover eligible expenditures, including home modifications, equipment purchases, and hiring of aides, with the goal of reducing the financial burden on caregivers. The credit will be set at 50% of eligible expenditures but will not exceed $1,000 per taxable year for caregivers with federal adjusted gross incomes up to $75,000 for individuals or $150,000 for married couples.
Supporters of SB632 argue that the bill is a necessary step toward acknowledging and assisting the contributions of family caregivers, who often face substantial out-of-pocket expenses for care-related activities. Opponents may raise concerns regarding the funding for the tax credits and whether the financial implications on state revenue could undermine other essential services. The effectiveness and adequacy of the tax credit in addressing caregiver needs will likely be a point of contention, particularly among stakeholders in the health and social service sectors.