BILLASINTRODUCEDANDPASSEDBYSENATE S.51
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S.51
IntroducedbySenatorsHardy,Clarkson,Gulick,Harrison,Major,Norris,
Vyhovsky,WeeksandWhite
ReferredtoCommitteeonFinance
Date:February6,2025
Subject:Taxation;incometax;taxcredit
Statementofpurposeofbillasintroduced:Thisbillproposestocreatea
VermontunpaidcaregivertaxcredittoprovidefinancialsupporttoVermonters
whospendsignificanttimeprovidinguncompensatedcareforafamily
member.
AnactrelatingtotheVermontunpaidcaregivertaxcredit
ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont:
Sec.1.FINDINGS
TheGeneralAssemblyfinds:
(1)AccordingtotheU.S.DepartmentofLabor,womenintheUnited
States55yearsofageandolderprovide26.6millionhoursofunpaidcareto
familyandfriendsdaily.
(2)AccordingtotheAARP:
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(A)Morethan75percentoffamilycaregivers50yearsofageand
olderwhoretiredearlybecauseoffamilycaregivingresponsibilitieswould
haveremainedintheworkforcelongeriftheyhadaccesstofinancialor
nonfinancialsupports.
(B)Iffamilycaregiversaged50yearsofageandolderhaveaccess
tosupportintheworkplace,U.S.GrossDomesticProductcouldgrowbyan
additional$1.7trillion(5.5percent)in2030.
(3)Accordingtoa2023reportbytheUrbanInstitute,entitled“Lifetime
Employment-RelatedCoststoWomenofProvidingFamilyCare,”the
employment-relatedcostsformothersofprovidingunpaidcaretominor
childrenandparents,parents-in-law,andspouses(includingunmarried
partners)withcareneedsaverage$295,000.00overalifetime.
(4)Usinganationalsurveyandsixfocusgroups,theCommonwealth
Fundidentifiedfinancialcompensationforthetimespentcaregivingasatop
policypriorityforfamilycaregivers.
Sec.2.32V.S.A.§ 5813isamendedtoread:
§ 5813.STATUTORYPURPOSES
***
(aa)Thestatutorypurposeoftheunpaidcaregivertaxcreditinsection
5830gofthistitleistoprovidefinancialsupporttoVermonterswhospend
significanttimeprovidinguncompensatedcareforafamilymember.
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Sec.3.32V.S.A.§ 5830gisaddedtoread:
§ 5830g.VERMONTUNPAIDCAREGIVERTAXCREDIT
(a)Aresidentindividualorpart-yearresidentindividualwhoprovides
uncompensatedcareshallbeentitledtoarefundablecreditagainstthetax
imposedbysection5822ofthistitleforthetaxableyear.Themaximum
allowablecreditpertaxableyearshallbe$2,500.00forproviding12months
ofuncompensatedcare.Thecreditshallbebasedonthenumberofmonthsthe
individualcaregiverspentprovidingatleast20hoursperweekof
uncompensatedcareforanindividualwho:
(1)isrelatedtothecaregiverbyblood,civilmarriage,oradoption;
(2)needsassistancewithdailyactivities,homehealthcare,orassistance
remainingsafeathome;
(3)hasamedicallydiagnoseddisabilityorhealthcondition;and
(4)doesnotresideataresidentialcarehome,anassistedliving
residence,ornursinghomeasdefinedby33V.S.A.§7102,oranyother
similaradultcarehomethatislicensedorrequiredtobelicensedpursuantto
33V.S.A.chapter71.
(b)Notwithstandingsubsection(a)ofthissection,theamountofthecredit
underthissectionshallbereducedby$50.00foreach$1,000.00,orfraction
thereof,bywhichtheindividual’sadjustedgrossincomeexceeds$125,000.00,
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20 BILLASINTRODUCEDANDPASSEDBYSENATE S.51
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irrespectiveoftheindividual’sfilingstatus.Forpurposesofthissubsection,
spousesfilingjointlyshallbeconsideredanindividual.
(c)Anindividualclaimingthecreditunderthissectionshallattestthatthey
metallrequirementsunderthissectionforthenumberofmonthsclaimed.
UpontheCommissioner’srequest,anindividualclaimingacreditunderthis
sectionshallprovidesupportingdocumentationorotherinformationrelatingto
theindividual’squalificationforthecredit.
Sec.4.EFFECTIVEDATE
Notwithstanding1V.S.A.§214,thisactshalltakeeffectretroactivelyon
January1,2025andapplytotaxableyearsbeginningonandafterJanuary1,
2025.
Sec.1.FINDINGS
TheGeneralAssemblyfinds:
(1)AccordingtotheU.S.DepartmentofLabor,womenintheUnited
States55yearsofageandolderprovide26.6millionhoursofunpaidcareto
familyandfriendsdaily.
(2)AccordingtotheAARP:
(A)Morethan75percentoffamilycaregivers50yearsofageand
olderwhoretiredearlybecauseoffamilycaregivingresponsibilitieswould
haveremainedintheworkforcelongeriftheyhadaccesstofinancialor
nonfinancialsupports.
(B)Iffamilycaregiversaged50yearsofageandolderhaveaccess
tosupportintheworkplace,U.S.GrossDomesticProductcouldgrowbyan
additional$1.7trillion(5.5percent)in2030.
(3)Accordingtoa2023reportbytheUrbanInstitute,entitled“Lifetime
Employment-RelatedCoststoWomenofProvidingFamilyCare,”the
employment-relatedcostsformothersofprovidingunpaidcaretominor
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11 BILLASINTRODUCEDANDPASSEDBYSENATE S.51
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childrenandparents,parents-in-law,andspouses(includingunmarried
partners)withcareneedsaverage$295,000.00overalifetime.
(4)Usinganationalsurveyandsixfocusgroups,theCommonwealth
Fundidentifiedfinancialcompensationforthetimespentcaregivingasatop
policypriorityforfamilycaregivers.
Sec.2.32V.S.A.§ 5813isamendedtoread:
§ 5813.STATUTORYPURPOSES
***
(aa)Thestatutorypurposeoftheunpaidcaregivertaxcreditinsection
5830gofthistitleistoprovidefinancialsupporttoVermonterswhospend
significanttimeprovidinguncompensatedcareforafamilymember.
Sec.3.32V.S.A.§ 5830gisaddedtoread:
§ 5830g.VERMONTUNPAIDCAREGIVERTAXCREDIT
(a)Aresidentindividualorpart-yearresidentindividualwhoprovides
uncompensatedcareshallbeentitledtoarefundablecreditagainstthetax
imposedbysection5822ofthistitleforthetaxableyear.Themaximum
allowablecreditpertaxableyearshallbe$1,000.00forproviding12months
ofuncompensatedcare.Thecreditshallbebasedonthenumberofmonthsthe
individualcaregiverspentprovidingatleast20hoursperweekof
uncompensatedcareforanindividualwho:
(1)isrelatedtothecaregiverbyblood,civilmarriage,oradoption;
(2)needsassistancewithactivitiesofdailyliving,homehealthcare,or
assistanceremainingsafeathome;
(3)hasamedicallydiagnoseddisabilityorhealthcondition;and
(4)doesnotresideataresidentialcarehome,anassistedliving
residence,ornursinghomeasdefinedby33V.S.A.§7102,oranyother
similaradultcarehomethatislicensedorrequiredtobelicensedpursuantto
33V.S.A.chapter71.
(b)Notwithstandingsubsection(a)ofthissection,theamountofthecredit
underthissectionshallbereducedby$20.00foreach$1,000.00,orfraction
thereof,bywhichtheindividual’sadjustedgrossincomeexceeds$125,000.00,
irrespectiveoftheindividual’sfilingstatus.Forpurposesofthissubsection,
spousesfilingjointlyshallbeconsideredanindividual.
(c)Anindividualclaimingthecreditunderthissectionshallattestthatthey
metallrequirementsunderthissectionforthenumberofmonthsclaimed. BILLASINTRODUCEDANDPASSEDBYSENATE S.51
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(d)UpontheCommissioner’srequest,anindividualclaimingacredit
underthissectionshallprovidesupportingdocumentationorother
informationrelatingtotheindividual’squalificationforthecredit,includinga
formpreparedbytheCommissioner,tobeexecutedbyalicensedmedical
professional,attestingthatthelicensedmedicalprofessionalprovidesprimary
orspecializedmedicalcarefortheindividualreceivinguncompensatedcare
andthattheindividualhasamedicaldiagnosisrequiringassistancewith
activitiesofdailylivingforatleast20hoursperweek.Theindividual
claimingthecreditshallhavethemedicalprofessionalexecutetheformprior
toclaimingthecredit,shallretaintheexecutedformforaperiodofatleast
threeyears,andshallprovidetheformtotheCommissioneronrequest.
Sec.4.EFFECTIVEDATE
Notwithstanding1V.S.A.§214,thisactshalltakeeffectretroactivelyon
January1,2025andapplytotaxableyearsbeginningonandafterJanuary1,
2025.