| 1 | | - | BILLASINTRODUCEDANDPASSEDBYSENATE S.51 |
|---|
| 2 | | - | 2025 Page1of6 |
|---|
| 3 | | - | S.51 |
|---|
| 4 | | - | IntroducedbySenatorsHardy,Clarkson,Gulick,Harrison,Major,Norris, |
|---|
| 5 | | - | Vyhovsky,WeeksandWhite |
|---|
| 6 | | - | ReferredtoCommitteeonFinance |
|---|
| 7 | | - | Date:February6,2025 |
|---|
| 8 | | - | Subject:Taxation;incometax;taxcredit |
|---|
| 9 | | - | Statementofpurposeofbillasintroduced:Thisbillproposestocreatea |
|---|
| 10 | | - | VermontunpaidcaregivertaxcredittoprovidefinancialsupporttoVermonters |
|---|
| 11 | | - | whospendsignificanttimeprovidinguncompensatedcareforafamily |
|---|
| 12 | | - | member. |
|---|
| 13 | | - | AnactrelatingtotheVermontunpaidcaregivertaxcredit |
|---|
| 14 | | - | ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont: |
|---|
| 15 | | - | Sec.1.FINDINGS |
|---|
| 16 | | - | TheGeneralAssemblyfinds: |
|---|
| 17 | | - | (1)AccordingtotheU.S.DepartmentofLabor,womenintheUnited |
|---|
| 18 | | - | States55yearsofageandolderprovide26.6millionhoursofunpaidcareto |
|---|
| 19 | | - | familyandfriendsdaily. |
|---|
| 20 | | - | (2)AccordingtotheAARP: |
|---|
| 21 | | - | 1 |
|---|
| 22 | | - | 2 |
|---|
| 23 | | - | 3 |
|---|
| 24 | | - | 4 |
|---|
| 25 | | - | 5 |
|---|
| 26 | | - | 6 |
|---|
| 27 | | - | 7 |
|---|
| 28 | | - | 8 |
|---|
| 29 | | - | 9 |
|---|
| 30 | | - | 10 |
|---|
| 31 | | - | 11 |
|---|
| 32 | | - | 12 |
|---|
| 33 | | - | 13 |
|---|
| 34 | | - | 14 |
|---|
| 35 | | - | 15 |
|---|
| 36 | | - | 16 |
|---|
| 37 | | - | 17 |
|---|
| 38 | | - | 18 BILLASINTRODUCEDANDPASSEDBYSENATE S.51 |
|---|
| 39 | | - | 2025 Page2of6 |
|---|
| 40 | | - | (A)Morethan75percentoffamilycaregivers50yearsofageand |
|---|
| 41 | | - | olderwhoretiredearlybecauseoffamilycaregivingresponsibilitieswould |
|---|
| 42 | | - | haveremainedintheworkforcelongeriftheyhadaccesstofinancialor |
|---|
| 43 | | - | nonfinancialsupports. |
|---|
| 44 | | - | (B)Iffamilycaregiversaged50yearsofageandolderhaveaccess |
|---|
| 45 | | - | tosupportintheworkplace,U.S.GrossDomesticProductcouldgrowbyan |
|---|
| 46 | | - | additional$1.7trillion(5.5percent)in2030. |
|---|
| 47 | | - | (3)Accordingtoa2023reportbytheUrbanInstitute,entitled“Lifetime |
|---|
| 48 | | - | Employment-RelatedCoststoWomenofProvidingFamilyCare,”the |
|---|
| 49 | | - | employment-relatedcostsformothersofprovidingunpaidcaretominor |
|---|
| 50 | | - | childrenandparents,parents-in-law,andspouses(includingunmarried |
|---|
| 51 | | - | partners)withcareneedsaverage$295,000.00overalifetime. |
|---|
| 52 | | - | (4)Usinganationalsurveyandsixfocusgroups,theCommonwealth |
|---|
| 53 | | - | Fundidentifiedfinancialcompensationforthetimespentcaregivingasatop |
|---|
| 54 | | - | policypriorityforfamilycaregivers. |
|---|
| 55 | | - | Sec.2.32V.S.A.§ 5813isamendedtoread: |
|---|
| 56 | | - | § 5813.STATUTORYPURPOSES |
|---|
| 57 | | - | *** |
|---|
| 58 | | - | (aa)Thestatutorypurposeoftheunpaidcaregivertaxcreditinsection |
|---|
| 59 | | - | 5830gofthistitleistoprovidefinancialsupporttoVermonterswhospend |
|---|
| 60 | | - | significanttimeprovidinguncompensatedcareforafamilymember. |
|---|
| 61 | | - | 1 |
|---|
| 62 | | - | 2 |
|---|
| 63 | | - | 3 |
|---|
| 64 | | - | 4 |
|---|
| 65 | | - | 5 |
|---|
| 66 | | - | 6 |
|---|
| 67 | | - | 7 |
|---|
| 68 | | - | 8 |
|---|
| 69 | | - | 9 |
|---|
| 70 | | - | 10 |
|---|
| 71 | | - | 11 |
|---|
| 72 | | - | 12 |
|---|
| 73 | | - | 13 |
|---|
| 74 | | - | 14 |
|---|
| 75 | | - | 15 |
|---|
| 76 | | - | 16 |
|---|
| 77 | | - | 17 |
|---|
| 78 | | - | 18 |
|---|
| 79 | | - | 19 |
|---|
| 80 | | - | 20 |
|---|
| 81 | | - | 21 BILLASINTRODUCEDANDPASSEDBYSENATE S.51 |
|---|
| 82 | | - | 2025 Page3of6 |
|---|
| 83 | | - | Sec.3.32V.S.A.§ 5830gisaddedtoread: |
|---|
| 84 | | - | § 5830g.VERMONTUNPAIDCAREGIVERTAXCREDIT |
|---|
| 85 | | - | (a)Aresidentindividualorpart-yearresidentindividualwhoprovides |
|---|
| 86 | | - | uncompensatedcareshallbeentitledtoarefundablecreditagainstthetax |
|---|
| 87 | | - | imposedbysection5822ofthistitleforthetaxableyear.Themaximum |
|---|
| 88 | | - | allowablecreditpertaxableyearshallbe$2,500.00forproviding12months |
|---|
| 89 | | - | ofuncompensatedcare.Thecreditshallbebasedonthenumberofmonthsthe |
|---|
| 90 | | - | individualcaregiverspentprovidingatleast20hoursperweekof |
|---|
| 91 | | - | uncompensatedcareforanindividualwho: |
|---|
| 92 | | - | (1)isrelatedtothecaregiverbyblood,civilmarriage,oradoption; |
|---|
| 93 | | - | (2)needsassistancewithdailyactivities,homehealthcare,orassistance |
|---|
| 94 | | - | remainingsafeathome; |
|---|
| 95 | | - | (3)hasamedicallydiagnoseddisabilityorhealthcondition;and |
|---|
| 96 | | - | (4)doesnotresideataresidentialcarehome,anassistedliving |
|---|
| 97 | | - | residence,ornursinghomeasdefinedby33V.S.A.§7102,oranyother |
|---|
| 98 | | - | similaradultcarehomethatislicensedorrequiredtobelicensedpursuantto |
|---|
| 99 | | - | 33V.S.A.chapter71. |
|---|
| 100 | | - | (b)Notwithstandingsubsection(a)ofthissection,theamountofthecredit |
|---|
| 101 | | - | underthissectionshallbereducedby$50.00foreach$1,000.00,orfraction |
|---|
| 102 | | - | thereof,bywhichtheindividual’sadjustedgrossincomeexceeds$125,000.00, |
|---|
| 103 | | - | 1 |
|---|
| 104 | | - | 2 |
|---|
| 105 | | - | 3 |
|---|
| 106 | | - | 4 |
|---|
| 107 | | - | 5 |
|---|
| 108 | | - | 6 |
|---|
| 109 | | - | 7 |
|---|
| 110 | | - | 8 |
|---|
| 111 | | - | 9 |
|---|
| 112 | | - | 10 |
|---|
| 113 | | - | 11 |
|---|
| 114 | | - | 12 |
|---|
| 115 | | - | 13 |
|---|
| 116 | | - | 14 |
|---|
| 117 | | - | 15 |
|---|
| 118 | | - | 16 |
|---|
| 119 | | - | 17 |
|---|
| 120 | | - | 18 |
|---|
| 121 | | - | 19 |
|---|
| 122 | | - | 20 BILLASINTRODUCEDANDPASSEDBYSENATE S.51 |
|---|
| 123 | | - | 2025 Page4of6 |
|---|
| 124 | | - | irrespectiveoftheindividual’sfilingstatus.Forpurposesofthissubsection, |
|---|
| 125 | | - | spousesfilingjointlyshallbeconsideredanindividual. |
|---|
| 126 | | - | (c)Anindividualclaimingthecreditunderthissectionshallattestthatthey |
|---|
| 127 | | - | metallrequirementsunderthissectionforthenumberofmonthsclaimed. |
|---|
| 128 | | - | UpontheCommissioner’srequest,anindividualclaimingacreditunderthis |
|---|
| 129 | | - | sectionshallprovidesupportingdocumentationorotherinformationrelatingto |
|---|
| 130 | | - | theindividual’squalificationforthecredit. |
|---|
| 131 | | - | Sec.4.EFFECTIVEDATE |
|---|
| 132 | | - | Notwithstanding1V.S.A.§214,thisactshalltakeeffectretroactivelyon |
|---|
| 133 | | - | January1,2025andapplytotaxableyearsbeginningonandafterJanuary1, |
|---|
| 134 | | - | 2025. |
|---|
| 135 | | - | Sec.1.FINDINGS |
|---|
| 136 | | - | TheGeneralAssemblyfinds: |
|---|
| 137 | | - | (1)AccordingtotheU.S.DepartmentofLabor,womenintheUnited |
|---|
| 138 | | - | States55yearsofageandolderprovide26.6millionhoursofunpaidcareto |
|---|
| 139 | | - | familyandfriendsdaily. |
|---|
| 140 | | - | (2)AccordingtotheAARP: |
|---|
| 141 | | - | (A)Morethan75percentoffamilycaregivers50yearsofageand |
|---|
| 142 | | - | olderwhoretiredearlybecauseoffamilycaregivingresponsibilitieswould |
|---|
| 143 | | - | haveremainedintheworkforcelongeriftheyhadaccesstofinancialor |
|---|
| 144 | | - | nonfinancialsupports. |
|---|
| 145 | | - | (B)Iffamilycaregiversaged50yearsofageandolderhaveaccess |
|---|
| 146 | | - | tosupportintheworkplace,U.S.GrossDomesticProductcouldgrowbyan |
|---|
| 147 | | - | additional$1.7trillion(5.5percent)in2030. |
|---|
| 148 | | - | (3)Accordingtoa2023reportbytheUrbanInstitute,entitled“Lifetime |
|---|
| 149 | | - | Employment-RelatedCoststoWomenofProvidingFamilyCare,”the |
|---|
| 150 | | - | employment-relatedcostsformothersofprovidingunpaidcaretominor |
|---|
| 151 | | - | 1 |
|---|
| 152 | | - | 2 |
|---|
| 153 | | - | 3 |
|---|
| 154 | | - | 4 |
|---|
| 155 | | - | 5 |
|---|
| 156 | | - | 6 |
|---|
| 157 | | - | 7 |
|---|
| 158 | | - | 8 |
|---|
| 159 | | - | 9 |
|---|
| 160 | | - | 10 |
|---|
| 161 | | - | 11 BILLASINTRODUCEDANDPASSEDBYSENATE S.51 |
|---|
| 162 | | - | 2025 Page5of6 |
|---|
| 163 | | - | childrenandparents,parents-in-law,andspouses(includingunmarried |
|---|
| 164 | | - | partners)withcareneedsaverage$295,000.00overalifetime. |
|---|
| 165 | | - | (4)Usinganationalsurveyandsixfocusgroups,theCommonwealth |
|---|
| 166 | | - | Fundidentifiedfinancialcompensationforthetimespentcaregivingasatop |
|---|
| 167 | | - | policypriorityforfamilycaregivers. |
|---|
| 168 | | - | Sec.2.32V.S.A.§ 5813isamendedtoread: |
|---|
| 169 | | - | § 5813.STATUTORYPURPOSES |
|---|
| 170 | | - | *** |
|---|
| 171 | | - | (aa)Thestatutorypurposeoftheunpaidcaregivertaxcreditinsection |
|---|
| 172 | | - | 5830gofthistitleistoprovidefinancialsupporttoVermonterswhospend |
|---|
| 173 | | - | significanttimeprovidinguncompensatedcareforafamilymember. |
|---|
| 174 | | - | Sec.3.32V.S.A.§ 5830gisaddedtoread: |
|---|
| 175 | | - | § 5830g.VERMONTUNPAIDCAREGIVERTAXCREDIT |
|---|
| 176 | | - | (a)Aresidentindividualorpart-yearresidentindividualwhoprovides |
|---|
| 177 | | - | uncompensatedcareshallbeentitledtoarefundablecreditagainstthetax |
|---|
| 178 | | - | imposedbysection5822ofthistitleforthetaxableyear.Themaximum |
|---|
| 179 | | - | allowablecreditpertaxableyearshallbe$1,000.00forproviding12months |
|---|
| 180 | | - | ofuncompensatedcare.Thecreditshallbebasedonthenumberofmonthsthe |
|---|
| 181 | | - | individualcaregiverspentprovidingatleast20hoursperweekof |
|---|
| 182 | | - | uncompensatedcareforanindividualwho: |
|---|
| 183 | | - | (1)isrelatedtothecaregiverbyblood,civilmarriage,oradoption; |
|---|
| 184 | | - | (2)needsassistancewithactivitiesofdailyliving,homehealthcare,or |
|---|
| 185 | | - | assistanceremainingsafeathome; |
|---|
| 186 | | - | (3)hasamedicallydiagnoseddisabilityorhealthcondition;and |
|---|
| 187 | | - | (4)doesnotresideataresidentialcarehome,anassistedliving |
|---|
| 188 | | - | residence,ornursinghomeasdefinedby33V.S.A.§7102,oranyother |
|---|
| 189 | | - | similaradultcarehomethatislicensedorrequiredtobelicensedpursuantto |
|---|
| 190 | | - | 33V.S.A.chapter71. |
|---|
| 191 | | - | (b)Notwithstandingsubsection(a)ofthissection,theamountofthecredit |
|---|
| 192 | | - | underthissectionshallbereducedby$20.00foreach$1,000.00,orfraction |
|---|
| 193 | | - | thereof,bywhichtheindividual’sadjustedgrossincomeexceeds$125,000.00, |
|---|
| 194 | | - | irrespectiveoftheindividual’sfilingstatus.Forpurposesofthissubsection, |
|---|
| 195 | | - | spousesfilingjointlyshallbeconsideredanindividual. |
|---|
| 196 | | - | (c)Anindividualclaimingthecreditunderthissectionshallattestthatthey |
|---|
| 197 | | - | metallrequirementsunderthissectionforthenumberofmonthsclaimed. BILLASINTRODUCEDANDPASSEDBYSENATE S.51 |
|---|
| 198 | | - | 2025 Page6of6 |
|---|
| 199 | | - | (d)UpontheCommissioner’srequest,anindividualclaimingacredit |
|---|
| 200 | | - | underthissectionshallprovidesupportingdocumentationorother |
|---|
| 201 | | - | informationrelatingtotheindividual’squalificationforthecredit,includinga |
|---|
| 202 | | - | formpreparedbytheCommissioner,tobeexecutedbyalicensedmedical |
|---|
| 203 | | - | professional,attestingthatthelicensedmedicalprofessionalprovidesprimary |
|---|
| 204 | | - | orspecializedmedicalcarefortheindividualreceivinguncompensatedcare |
|---|
| 205 | | - | andthattheindividualhasamedicaldiagnosisrequiringassistancewith |
|---|
| 206 | | - | activitiesofdailylivingforatleast20hoursperweek.Theindividual |
|---|
| 207 | | - | claimingthecreditshallhavethemedicalprofessionalexecutetheformprior |
|---|
| 208 | | - | toclaimingthecredit,shallretaintheexecutedformforaperiodofatleast |
|---|
| 209 | | - | threeyears,andshallprovidetheformtotheCommissioneronrequest. |
|---|
| 210 | | - | Sec.4.EFFECTIVEDATE |
|---|
| 211 | | - | Notwithstanding1V.S.A.§214,thisactshalltakeeffectretroactivelyon |
|---|
| 212 | | - | January1,2025andapplytotaxableyearsbeginningonandafterJanuary1, |
|---|
| 213 | | - | 2025. |
|---|
| 1 | + | BILL AS INTRODUCED S.51 |
|---|
| 2 | + | 2025 Page 1 of 4 |
|---|
| 3 | + | |
|---|
| 4 | + | |
|---|
| 5 | + | VT LEG #379761 v.1 |
|---|
| 6 | + | S.51 1 |
|---|
| 7 | + | Introduced by Senators Hardy, Clarkson, Gulick, Harrison, Major, Norris, 2 |
|---|
| 8 | + | Vyhovsky, Weeks and White 3 |
|---|
| 9 | + | Referred to Committee on 4 |
|---|
| 10 | + | Date: 5 |
|---|
| 11 | + | Subject: Taxation; income tax; tax credit 6 |
|---|
| 12 | + | Statement of purpose of bill as introduced: This bill proposes to create a 7 |
|---|
| 13 | + | Vermont unpaid caregiver tax credit to provide financial support to 8 |
|---|
| 14 | + | Vermonters who spend significant time providing uncompensated care for a 9 |
|---|
| 15 | + | family member. 10 |
|---|
| 16 | + | An act relating to the Vermont unpaid caregiver tax credit 11 |
|---|
| 17 | + | It is hereby enacted by the General Assembly of the State of Vermont: 12 |
|---|
| 18 | + | Sec. 1. FINDINGS 13 |
|---|
| 19 | + | The General Assembly finds: 14 |
|---|
| 20 | + | (1) According to the U.S. Department of Labor, women in the United 15 |
|---|
| 21 | + | States 55 years of age and older provide 26.6 million hours of unpaid care to 16 |
|---|
| 22 | + | family and friends daily. 17 |
|---|
| 23 | + | (2) According to the AARP: 18 |
|---|
| 24 | + | (A) More than 75 percent of family caregivers 50 years of age and 19 |
|---|
| 25 | + | older who retired early because of family caregiving responsibilities would 20 BILL AS INTRODUCED S.51 |
|---|
| 26 | + | 2025 Page 2 of 4 |
|---|
| 27 | + | |
|---|
| 28 | + | |
|---|
| 29 | + | VT LEG #379761 v.1 |
|---|
| 30 | + | have remained in the workforce longer if they had access to financial or 1 |
|---|
| 31 | + | nonfinancial supports. 2 |
|---|
| 32 | + | (B) If family caregivers aged 50 years of age and older have access to 3 |
|---|
| 33 | + | support in the workplace, U.S. Gross Domestic Product could grow by an 4 |
|---|
| 34 | + | additional $1.7 trillion (5.5 percent) in 2030. 5 |
|---|
| 35 | + | (3) According to a 2023 report by the Urban Institute, entitled “Lifetime 6 |
|---|
| 36 | + | Employment-Related Costs to Women of Providing Family Care,” the 7 |
|---|
| 37 | + | employment-related costs for mothers of providing unpaid care to minor 8 |
|---|
| 38 | + | children and parents, parents-in-law, and spouses (including unmarried 9 |
|---|
| 39 | + | partners) with care needs average $295,000.00 over a lifetime. 10 |
|---|
| 40 | + | (4) Using a national survey and six focus groups, the Commonwealth 11 |
|---|
| 41 | + | Fund identified financial compensation for the time spent caregiving as a top 12 |
|---|
| 42 | + | policy priority for family caregivers. 13 |
|---|
| 43 | + | Sec. 2. 32 V.S.A. § 5813 is amended to read: 14 |
|---|
| 44 | + | § 5813. STATUTORY PURPOSES 15 |
|---|
| 45 | + | * * * 16 |
|---|
| 46 | + | (aa) The statutory purpose of the unpaid caregiver tax credit in section 17 |
|---|
| 47 | + | 5830g of this title is to provide financial support to Vermonters who spend 18 |
|---|
| 48 | + | significant time providing uncompensated care for a family member. 19 BILL AS INTRODUCED S.51 |
|---|
| 49 | + | 2025 Page 3 of 4 |
|---|
| 50 | + | |
|---|
| 51 | + | |
|---|
| 52 | + | VT LEG #379761 v.1 |
|---|
| 53 | + | Sec. 3. 32 V.S.A. § 5830g is added to read: 1 |
|---|
| 54 | + | § 5830g. VERMONT UNPAID CAREGIVER TAX CREDIT 2 |
|---|
| 55 | + | (a) A resident individual or part-year resident individual who provides 3 |
|---|
| 56 | + | uncompensated care shall be entitled to a refundable credit against the tax 4 |
|---|
| 57 | + | imposed by section 5822 of this title for the taxable year. The maximum 5 |
|---|
| 58 | + | allowable credit per taxable year shall be $2,500.00 for providing 12 months of 6 |
|---|
| 59 | + | uncompensated care. The credit shall be based on the number of months the 7 |
|---|
| 60 | + | individual caregiver spent providing at least 20 hours per week of 8 |
|---|
| 61 | + | uncompensated care for an individual who: 9 |
|---|
| 62 | + | (1) is related to the caregiver by blood, civil marriage, or adoption; 10 |
|---|
| 63 | + | (2) needs assistance with daily activities, home health care, or assistance 11 |
|---|
| 64 | + | remaining safe at home; 12 |
|---|
| 65 | + | (3) has a medically diagnosed disability or health condition; and 13 |
|---|
| 66 | + | (4) does not reside at a residential care home, an assisted living 14 |
|---|
| 67 | + | residence, or nursing home as defined by 33 V.S.A. § 7102, or any other 15 |
|---|
| 68 | + | similar adult care home that is licensed or required to be licensed pursuant to 16 |
|---|
| 69 | + | 33 V.S.A. chapter 71. 17 |
|---|
| 70 | + | (b) Notwithstanding subsection (a) of this section, the amount of the credit 18 |
|---|
| 71 | + | under this section shall be reduced by $50.00 for each $1,000.00, or fraction 19 |
|---|
| 72 | + | thereof, by which the individual’s adjusted gross income exceeds $125,000.00, 20 BILL AS INTRODUCED S.51 |
|---|
| 73 | + | 2025 Page 4 of 4 |
|---|
| 74 | + | |
|---|
| 75 | + | |
|---|
| 76 | + | VT LEG #379761 v.1 |
|---|
| 77 | + | irrespective of the individual’s filing status. For purposes of this subsection, 1 |
|---|
| 78 | + | spouses filing jointly shall be considered an individual. 2 |
|---|
| 79 | + | (c) An individual claiming the credit under this section shall attest that they 3 |
|---|
| 80 | + | met all requirements under this section for the number of months claimed. 4 |
|---|
| 81 | + | Upon the Commissioner’s request, an individual claiming a credit under this 5 |
|---|
| 82 | + | section shall provide supporting documentation or other information relating to 6 |
|---|
| 83 | + | the individual’s qualification for the credit. 7 |
|---|
| 84 | + | Sec. 4. EFFECTIVE DATE 8 |
|---|
| 85 | + | Notwithstanding 1 V.S.A. § 214, this act shall take effect retroactively on 9 |
|---|
| 86 | + | January 1, 2025 and apply to taxable years beginning on and after January 1, 10 |
|---|
| 87 | + | 2025. 11 |
|---|