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HB 5214

Individual income tax: credit; credit for eligible family caregivers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 277.

2025-2026 Regular Session Introduced by Greg Alexander and 22 co-sponsors

Provides a refundable Michigan tax credit up to 30% of eligible unpaid caregiving expenses, capped at $2,000, for low- to moderate-income in-home caregivers.

referred to second reading
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Bill Summary · HB 5214

Michigan HB 5214 — Summary (House Introduced)

Title: Individual income tax: credit; credit for eligible family caregivers; provide for. (Adds Sec. 277 to the Income Tax Act of 1967, MCL 206.1–206.847)

Introduced: March 14, 2025 (reproduced/introduced Nov 4, 2025)
Sponsor: Rep. Kathy Schmaltz (and cosponsors)
Effective for tax years beginning on or after: January 1, 2026
Current status: House bill; referred to committee (see Procedural history)

Purpose

Provide a refundable state individual income tax credit to low- and moderate-income Michigan residents who are unpaid family caregivers and who personally incur qualifying expenses in providing in‑home care for an eligible family member.

Key provisions

  • Credit amount: 30% of the taxpayer’s qualified caregiving expenses for the tax year, or $2,000, whichever is less.
  • Refundable: Any portion of the credit that exceeds the taxpayer’s tax liability is refundable.
  • Effective date: Applies to tax years that begin on or after January 1, 2026.
  • Exclusions: Qualified expenses for which the taxpayer was reimbursed by insurance or any state or federal assistance program may not be claimed.

Eligibility (taxpayer must meet all):

  • Michigan resident.
  • Provided physical care or financial support (or both) for an eligible family member.
  • Personally incurred uncompensated qualified expenses of $2,000 or more in the tax year.
  • Adjusted Gross Income (AGI) less than $50,000 for single filers or less than $100,000 for joint filers.

Eligible family member (must live in a private home, not a facility) — by age:

  • Age ≥ 6: unable to perform at least 2 activities of daily living (ADLs) without substantial assistance (certified by a health care provider within past 24 months), or requires substantial supervision due to severe cognitive impairment.
  • Age 2–5: unable to perform, without substantial assistance, at least 2 of: eating, transferring, ambulating.
  • Under 2: requires specific durable medical equipment or needs a trained skilled practitioner available when parents/guardians are absent.

Qualified expenses (examples)

  • Respite care
  • Counseling/support groups or caregiver training
  • Transportation related to care (limited to federal medical mileage rate)
  • Assistive technologies and devices (including remote monitoring)
  • Hiring home care aides or direct care workers
  • Health and medical equipment
  • Home or vehicle accessibility modifications
  • Excludes general household maintenance (e.g., routine painting, plumbing, electrical)

Documentation required

Taxpayers claiming the credit must provide, in the form and manner the Department of Treasury prescribes:
- Documentation substantiating claimed expenses
- Name and SSN or ITIN of the eligible family member
- If applicable, copy of the health care provider certification

Who is affected

  • Primary beneficiaries: unpaid family caregivers in Michigan who reside in the state, meet the AGI and expense thresholds, and provide care to an eligible family member living at home.
  • State government: Department of Treasury (administration, verification, refund processing) and potential fiscal impact on state revenues due to refundable credits.
  • Care recipients: may be supported to remain at home rather than enter institutional care.

Potential impacts and considerations

  • Financial relief for qualifying caregivers (credit up to $2,000).
  • Likely administrative burden for the Department of Treasury to verify eligibility, documentation, and medical certifications.
  • May incentivize in‑home care and reduce institutionalization pressure, but fiscal impact (cost to the state) is not specified in the bill text and would require a fiscal analysis.
  • Documentation and certification requirements (including a 24‑month recency rule for some certifications) could affect ease of access.

Procedural history (selected)

  • Filed: March 14, 2025
  • Read first time / Referred to Human Services: April 7, 2025
  • Bill electronically reproduced / Reintroduced & referred to Committee on Insurance: November 4–5, 2025

(Committee referrals in the record include Human Services, Joint Committee on Transportation, and Insurance at various points.)

If you want, I can draft a one-page explainer for taxpayers describing eligibility steps and what documentation to collect to claim this credit.

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

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