House version drops unpaid caregiver tax credit; expands other Vermont tax breaks

At a Finance meeting, staff reviewed two versions of S.51 and related tax changes: the Senate proposal included a refundable unpaid caregiver tax credit, while the House amendment removed that credit and instead folded in several other tax changes, with staff citing an estimated $6 million fiscal effect for the Senate caregiver credit and roughly $13.5 million for the House package.

The discussion matters because the proposals change tax relief targeted to unpaid family caregivers, families with young children, low-income workers, retirees and veterans, and because staff said the different versions have materially different budget impacts.

Staff member 2, a staff member, described the Senate bill: “S 51 as passed by the senate was an act relating to the Vermont unpaid caregiver tax credit.” Under that version, the credit would be refundable, available to resident and part‑year resident individuals, with a maximum allowable credit of $1,000 for providing 12 months of uncompensated care. The credit would be prorated monthly based on…