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Senate advances refundable $1,000 unpaid caregiver tax credit, aimed at older Vermonters
Summary
S.51 would create a refundable $1,000 tax credit for eligible unpaid caregivers who provide more than 20 hours per week of care, with income phaseouts and eligibility documentation; the Senate amended and ordered the bill for third reading.
The Vermont Senate advanced S.51 on March 19, a proposal to create a refundable unpaid caregiver tax credit designed to help Vermonters who provide substantial unpaid care to relatives.
Senator Ruth Hardy, reporting for the Committee on Finance, framed the bill around constituent testimony and state data: she said more than 70,000 Vermonters provide unpaid care and that most unpaid caregivers are women over 55. The bill would provide a $1,000 refundable credit for eligible caregivers earning up to $125,000 annually, with the credit phased down by $20 per $1,000 of income between $125,000 and $175,000. The credit could be prorated for part-time residents or part-time caregiving.
Eligibility requires providing more than 20 hours per week of unpaid care to a related individual who needs assistance with activities of daily living (ADLs), has a diagnosed condition, and does not live in a residential care facility. Caregivers must attest to eligibility and provide supporting documentation to the Department of Taxes upon request; acceptable documentation includes a form signed by a medical professional certifying the care recipient's need for ADL assistance.
The Joint Fiscal Office estimated the credit would reduce taxes for about 6,300 Vermonters at a cost of roughly $6 million, with an average credit of about $952 per recipient. Committee testimony and analysis used data from the Department of Disabilities, Aging and Independent Living (Choices for Care) to estimate eligibility and fiscal impact.
The Senate amended the bill as recommended by the Committee on Finance and ordered S.51 to third reading. Committee votes were reported as 6-0-1 in Finance and 7-0-0 in Appropriations on advance language and funding interactions mentioned on the floor.
