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HB 1078

Family caregiver; creates a nonrefundable income tax credit for taxable years 2024 through 2028.

2025 Regular Session Introduced by Betsy Carr and 6 co-sponsors

HB 1078 creates a nonrefundable tax credit for Virginia family caregivers from 2024-2028, providing financial relief to unpaid caregivers through income tax reduction.

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Bill Summary · HB 1078

Legislative bill overview

HB 1078 establishes a nonrefundable income tax credit for Virginia residents who serve as family caregivers, available for tax years 2024 through 2028. The credit is designed to provide financial relief to individuals bearing the cost and responsibility of caring for family members, whether due to age, disability, or illness.

Why this is important

Family caregiving represents a significant economic and personal burden, with many caregivers reducing work hours or leaving employment entirely to provide care. This tax credit could help offset expenses like medical supplies, assistance services, or lost income while reducing pressure on state healthcare and social services systems by supporting unpaid caregiving arrangements.

Potential points of contention

  • Credit amount and eligibility criteria: The bill's specific parameters (credit value, income limits, definition of qualifying caregiver relationships) are crucial but not detailed in this summary; overly generous credits could strain state revenues while restrictive ones may limit real impact
  • Nonrefundable nature: Since the credit is nonrefundable, lower-income caregivers who owe little or no tax may receive minimal or no benefit, potentially excluding those most financially strained
  • Temporary sunset provision: The 2028 expiration creates uncertainty about whether this becomes permanent policy and may incentivize last-minute usage rather than long-term planning; renewal would require future legislative action
  • Administrative complexity: Defining and verifying "family caregiver" status could create compliance challenges and audit burdens for both taxpayers and the Virginia tax administration

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

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