01-04-2025
Family caregivers in WV would be eligible for a tax credit, bill sits in Senate Finance
Senate Bill 697, the 'Caregiver Tax Credit Act,' would establish a nonrefundable tax credit for eligible family members for expenditures incurred in their caregiving duties. (Getty Images)
Family members caring for aging parents, spouses, veterans and others in West Virginia would be eligible for a tax credit, according to a bill in the Senate.
AARP West Virginia backs this bill, estimating that it could help 250,000 caregivers who are helping family members in the state.
But as Crossover Day is Wednesday — the day legislation must move out of their chamber of origin — the tax credit bill sits parked in the Senate Finance Committee.
'Family caregivers often face significant out-of-pocket expenses, averaging over $7,200 annually, to ensure their loved ones receive the necessary care,' said Gaylene Miller, AARP West Virginia state director. 'A caregiver tax credit would provide significant financial relief to family caregivers, promoting independence and safety for loved ones, and encouraging more individuals to take on caregiving roles.'
The measure, Senate Bill 697, is known as the 'Caregiver Tax Credit Act.' It would establish a nonrefundable tax credit with a maximum of $2,000 for eligible family members 18 years of age and older for eligible expenditures incurred in their caregiving duties.
A fiscal note by the state Tax and Revenue Department estimates that the proposed legislation would result in a loss of General Revenue funds of $160 million to $260 million per year beginning in fiscal year 2028.
'While this tax credit will cost the state initially, I believe the savings will more than be made up for it because Medicaid will not have to pay for nursing home residential care,' said Sen. Laura Wakim Chapman, R-Ohio, who sponsored the bill. 'Beyond the savings, our elderly deserve to remain in their homes surrounded by their loved ones for as long as possible.'
Representatives from AARP West Virginia say their research shows 84% of Republican, Democratic and independent voters support a tax credit for caregivers.
'The caregiver tax credit bill is a righteous investment in keeping disabled or elderly West Virginians out of institutional care,' said Sen. Mike Woelfel, D-Cabell, a co-sponsor of the measure. 'This is the most 'West Virginia' bill I have seen in 11 sessions. We are our brothers' keepers.'
The Senate Health Committee advanced the legislation March 19, sending the measure to the finance committee.
Senate Finance Chairman Jason Barrett was unavailable to comment for this story.
U.S. Sen. Shelley Moore Capito, has introduced a bill on the federal level — the Credit for Caring Act — aimed at providing financial relief for family caregivers. The bipartisan legislation would offer a tax credit of up to $5,000 for eligible working family caregivers to help offset caregiving expenses.
SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
