Caregiver tax credit clears Finance Committee with unanimous support

State Rep. Kathy Schmaltz is leading an effort to ease the growing financial strain on Michigan families caring for a loved one while balancing work, raising children, and managing the costs that come with caregiving.

Schmaltz’s plan to create a caregiver tax credit received unanimous approval Tuesday from the House Finance Committee, marking a key step toward providing meaningful, tangible support for those who often sacrifice their own time and savings to care for others.

“A caregiver’s role is rooted in love, but that doesn’t mean it’s easy,” Schmaltz said. “Across Michigan, people are doing everything they can to take care of their parents, spouses, and family members — often at great personal cost. They shouldn’t have to shoulder that burden alone. I recognize their sacrifice and I want to make find a way to offer help when they need it most.”

Roughly 1.6 million Michigan residents serve as family caregivers, contributing countless hours of unpaid care each year while often paying out of pocket for essential needs. From mileage for doctor’s appointments to medical supplies and home modifications, these costs add up quickly.

Schmaltz’s legislation would establish a nonrefundable income tax credit to help offset those expenses. Under House Bill 5214, eligible caregivers could receive a credit equal to 30% of qualified expenses, up to $2,000 annually.

“My goal is to help families keep up with the costs they’re already paying,” Schmaltz said. “Caregivers are the backbone of our long-term care system. Supporting them means helping more people stay in their homes and communities, where they want to be.”

The bill recognizes the wide range of support caregivers provide. Eligible costs could include transportation to medical appointments, hiring in-home care assistance, purchasing medical equipment, or making home or vehicle modifications to improve accessibility, like installing a wheelchair ramp.

The legislation also includes support for services such as respite care, assistive technologies, and caregiver training, ensuring families have access to both practical and emotional support as they navigate caregiving responsibilities.

Importantly, the credit would only apply to unreimbursed expenses, ensuring coordination with existing insurance coverage and government assistance programs.

Advocates from AARP Michigan joined Schmaltz to testify in support of the plan. They emphasized the significant impact caregivers already have across the state, reflected in a 2026 AARP report called Valuing the Invaluable.

“What we have consistently learned is that Michigan’s unpaid family caregivers provide 1.3 billion hours of unpaid care each year. That care will cost more than $27 billion if it had to be purchased on the marketplace,” said Paula Cunningham, state director for AARP Michigan. “We all know these people. They are in your neighborhood. They are in your churches, your synagogues. They are your children’s friends and family members. They are your relatives. They reside in every single community in our state.

“Home is where people want to age and providing just a little support to caregivers helps them stay there.”

House Bill 5214 now advances to the full House for consideration.