Victory in Vermont: House Passes Tax Credit for Family Caregivers

Vermont’s Unpaid Caregiver Tax Credit has made significant progress in recognizing the invaluable contributions of family caregivers. After passing the Senate a few months ago, the bill has now successfully passed the House yesterday. This tax credit will provide financial support to those who dedicate considerable time to caring for family members, offering relief to a group that often goes unnoticed despite their essential role in healthcare.

The statistics behind the need for such a bill are striking. According to the U.S. Department of Labor, women aged 55 and older are responsible for over 26 million hours of unpaid care every day. The AARP reports that more than 75% of caregivers aged 50 and older who retired early due to caregiving responsibilities would have stayed in the workforce longer if they had access to adequate support. The financial toll of caregiving is also immense, with some estimates suggesting that the lifetime costs for women providing unpaid care could reach nearly $300,000.

Under S.51, individuals who provide at least 20 hours of unpaid care per week will be eligible for a refundable tax credit of up to $2,500. The credit will be based on the number of months spent providing care and will be reduced for individuals with incomes over $125,000. To qualify, the person receiving care must have a medically diagnosed condition, and the caregiver must be assisting with daily activities or health care needs. The individual receiving care must also live at home rather than in a residential care facility.

The bill has garnered strong bipartisan support, with both Democratic and Republican leaders backing it. While it was introduced by Democratic Senators Ruth Hardy and Alison Clarkson, the bill also incorporates ideas from Republican Governor Phil Scott. Governor Scott has long advocated for policies that provide financial relief to middle-class families, and this bill reflects that priority, acknowledging the need for support for caregivers who often make significant personal sacrifices.

For many caregivers in Vermont, the passage of this bill marks a major victory. The tax credit will help alleviate some of the financial burden caregivers face, whether it’s covering medical bills, caregiving supplies, or lost wages due to time spent away from work. But perhaps more importantly, it recognizes the hard work and dedication of caregivers, showing that Vermont values their contributions and is committed to providing the necessary support.

The success of this bill sets a positive example for other states as the demand for caregiving continues to grow. As Vermont leads the way in offering financial relief to those providing care at home, it’s clear that this is just the beginning of a broader movement to ensure that caregivers are given the support they deserve. Now, it heads to the governor’s desk for final approval.