Review of Federal and State Caregiver Tax Credit Laws and Bills

Unpaid caregivers play a vital role in supporting older adults and people with disabilities to remain in their homes and communities. They often face substantial financial and emotional strain from the burden of caregiving. In response, federal and state policymakers have advanced proposals to offer targeted tax relief to caregivers. The House and Senate introduced the Credit for Caring Act of 2024 (CCA) (H.R. 7165; S. 3702), which proposes a new federal tax credit to offset the financial strain of unpaid caregiving. As of April 2025, in addition to the federal CCA, 15 states have introduced caregiver tax credit bills, and 5 states have enacted programs. This brief summarizes key state and federal caregiving tax credit features, including qualifying expenses, reimbursement amounts, maximum credit amounts and eligibility criteria.