The Virginia General Assembly introduced Senate Bill No. 419 on January 10, 2024, aimed at providing financial relief to family caregivers through a new tax credit. This legislation, proposed by Senators Head, Boysko, and Subramanyam, seeks to amend the Code of Virginia by adding a section that establishes a family caregiver tax credit for eligible expenditures incurred while caring for family members who require assistance with daily living activities.

The bill defines "activities of daily living" (ADLs) to include essential tasks such as bathing, dressing, and feeding. It outlines that eligible expenditures may encompass home modifications to enhance mobility and safety, the purchase of assistive equipment, and costs associated with hiring home care aides or utilizing adult day care services. However, general household maintenance expenses are explicitly excluded from eligibility.

To qualify for the tax credit, caregivers must have a federal adjusted gross income not exceeding $100,000 for individuals or $200,000 for married couples. The proposed credit allows caregivers to claim 50% of their eligible expenditures, capped at $1,000, for taxable years from 2024 to 2028. Importantly, caregivers must not have received any compensation for these expenses to qualify.

The bill has been referred to the Committee on Finance and Appropriations, where it will undergo further scrutiny. While the legislation has garnered support for addressing the financial burdens faced by family caregivers, it may also face debates regarding its fiscal implications and the adequacy of the proposed credit amount.

If passed, SB419 could have significant social implications, potentially easing the financial strain on families providing care to elderly or disabled relatives. Experts suggest that such measures could encourage more individuals to take on caregiving roles, thereby reducing reliance on institutional care facilities. The bill's future will depend on discussions within the committee and the broader legislative process as it moves forward in the coming months.