Bill S.231 proposes the establishment of a family caregiver tax credit aimed at providing financial relief to Vermont taxpayers who incur expenses related to the care of family members with long-term care needs. The bill amends existing law to include a new section, 5830g, which outlines the eligibility criteria for the credit, the types of qualified expenses that can be claimed, and the calculation of the credit amount. Specifically, the credit will be equal to 30% of qualified expenses, capped at $2,500 per taxable year, and will be subject to income limitations. Additionally, the bill introduces a definition for "individual with long-term care needs" and specifies the activities of daily living that qualify for assistance.

Furthermore, the bill modifies the definition of "household" to exclude individuals with long-term care needs from being counted as household members if a family caregiver credit has been claimed for them in the most recent tax year. This change aims to ensure that the income of caregivers is not negatively impacted when determining eligibility for property tax credits. The act is set to take effect retroactively on January 1, 2026, applying to taxable years beginning on or after that date.

Statutes affected:
As Introduced: 32-5813, 32-6061