Senate Bill 697, known as the “Caregiver Tax Credit Act,” would provide eligible family members with a nonrefundable tax credit for expenses incurred while caring for a loved one.
According to a Senate bill, family members caring for aging parents, spouses, veterans, and others in West Virginia will be eligible for a tax credit.
AARP West Virginia supports this bill, estimating that it will benefit 250,000 caregivers who assist family members in the state.
However, because Crossover Day is Wednesday, the day on which legislation must be moved out of its chamber of origin, the tax credit bill remains in the Senate Finance Committee.
“Family caregivers frequently face significant out-of-pocket expenses, averaging more than $7,200 per year, to ensure their loved ones receive the necessary care,” said Gaylene Miller, AARP West Virginia State Director.
“A caregiver tax credit would provide significant financial relief to family caregivers, promoting independence and safety for loved ones, and encouraging more individuals to take on caregiving roles.”
Senate Bill 697 is known as the “Caregiver Tax Credit Act.” It would create a nonrefundable tax credit of up to $2,000 for eligible family members 18 and older for caregiving-related expenses.
According to the state Tax and Revenue Department, the proposed legislation would lead to a loss of $160 million to $260 million in General Revenue funds starting in fiscal year 2028.
“While this tax credit will cost the state initially, I believe the savings will more than compensate because Medicaid will no longer have to pay for nursing home residential care,” said Sen. Laura Wakim Chapman, R-Ohio, the bill’s sponsor. “Beyond the savings, our elderly deserve to remain in their homes surrounded by their loved ones for as long as possible.”
According to representatives from AARP West Virginia, 84% of Republican, Democratic, and Independent voters support a caregiver tax credit.
“The caregiver tax credit bill is a righteous investment in keeping disabled or elderly West Virginians out of institutional care,” said Sen. Mike Woelfel, D-Cabell, who co-sponsored the bill. “This is the most ‘West Virginia’ bill I’ve seen in eleven sessions. “We are our brothers’ keeper.”
The Senate Health Committee advanced the legislation on March 19, sending it to the Finance Committee.
Senate Finance Chairman Jason Barrett was unavailable for comment on this story.
Sen. Shelley Moore Capito, R-West Virginia, has introduced the Credit for Caring Act, a federal bill aimed at providing financial relief to family caregivers. The bipartisan legislation would provide eligible working family caregivers with a tax credit of up to $5,000 to help cover caregiving expenses.
