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Bill

S 231

An act relating to a family caregiver tax credit

2025-2026 Regular Session Introduced by Randy Brock and 6 co-sponsors

Creates a nonrefundable state income tax credit to offset eligible expenses for Vermonters providing substantial unpaid family caregiving.

Read 1st time & referred to Committee on Finance
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WeVote Research Nonpartisan
Bill Summary · S 231

Summary of S.231 (2025-2026) — An act relating to a family caregiver tax credit

Purpose and intent

  • Establishes a state individual income tax credit designed to recognize and support family caregivers.
  • Aims to reduce the financial burden on Vermonters who provide unpaid caregiving to relatives or others in need of assistance with daily living activities.
  • Seeks to encourage caregiving within families and expand the availability of informal caregiving as a component of the state’s broader long-term care strategy.

Key provisions and changes

  • Tax credit creation

    • Creates a nonrefundable state individual income tax credit for qualifying family caregivers.
    • The credit is intended to offset eligible caregiving-related expenses or costs associated with providing care.

  • Eligibility criteria (conceptual)

    • The caregiver must provide substantial unpaid care to a qualifying individual (e.g., a family member or someone for whom the caregiver has a defined caregiving relationship).
    • The qualifying individual would typically require assistance with activities of daily living or substantial in-home support, indicating a need for ongoing caregiving.

  • Credit amount and calculation (conceptual)

    • The bill outlines a formula or schedule to determine the annual credit amount, potentially tied to:
    • Degree of caregiving intensity
    • Care recipient’s needs
    • Certain eligible expenses incurred by the caregiver
    • As a nonrefundable credit, it can reduce the caregiver’s state tax liability to zero but cannot generate a refund beyond due state taxes.

  • Interaction with other programs

    • Provisions may specify coordination with federal tax credits (e.g., the federal dependent care credit) or existing Vermont credits, to prevent double benefits.
    • May outline that expenses must be paid or incurred in a manner consistent with caregiving duties and substantiated by documentation.

  • Administration and verification

    • Requires the Department of Taxes to establish application, verification, and record-keeping procedures for claimants.
    • Likely includes required documentation demonstrating caregiving role, relationship to the care recipient, and caregiving-related costs.

  • Nonretirement and sunset considerations

    • The bill may specify effective dates, administrative rules development, and potential sunset or review provisions to assess program cost and effectiveness.

  • Fiscal impact (implied)

    • The Legislature would consider the revenue impact of new credits on state tax revenues.
    • Budgetary notes or fiscal notes typically accompany such bills to estimate annual cost and potential savings elsewhere (e.g., through delayed programs or reduced formal care costs).

Who would be affected

  • Primary beneficiaries: Vermonters who provide substantial unpaid care to qualifying relatives or others and incur related caregiving costs.
  • Secondary effects: Care recipients and family members who benefit from increased formal recognition of caregiving; state tax system with a new ancillary credit affecting individual income tax filings.

Procedural and timeline aspects

  • Introduced and referred: Read 1st time and referred to Committee on Finance on 2026-01-09.
  • Sponsor details: Multiple senators listed as co-sponsors (Joe Major, Ruth Hardy, Ginny Lyons, Martine Gulick, Alison Clarkson, Terry Williams, Randy Brock), indicating bipartisan or broad legislative interest.
  • Next steps: The Committee on Finance would hear testimony, potentially amend, and propose a bill version for floor action. If passed, it would go to the full Senate and, subsequently, the House (depending on Vermont’s legislative process and cross-chamber agreement).

Notes for readers

  • The bill text would provide exact eligibility definitions, credit amounts, and filing procedures. The above captures the bill’s core intent and likely framework based on typical caregiver credit structure.
  • As a nonrefundable credit, the benefit reduces tax liability but does not generate a refund beyond the amount of taxes owed.

Compiled from official sources — confirm details with the bill’s official record.

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