Caregiver Tax Credit and Reimbursement Program

Throughout the MPA process, more than 100 proposals were developed thanks in particular to thousands of hours of work by external stakeholders and members of the public. These proposals and the MPA Council commentary are being submitted to the Governor and shared with policymakers and the public to inform policymaking. These proposals represent a starting point for discussion. Further discussion is necessary between relevant state agencies and stakeholders to both refine these proposals and assess which may be appropriate to adopt and implement.

Create a caregiver tax credit to be paid directly to the caregiver and a reimbursement program for caregiving expenses to offset expenses such as home safety modifications, medical equipment, hiring of home health aides, etc.

Justification

Create an expansive caregiver tax credit to be paid directly to the caregiver and a reimbursement program for caregiving expenses, easing the financial burden on the caregiver. The programs should aim to offset expenses such as home safety modifications, medical equipment, hiring of home health aides, etc.

• This credit would provide up to $6,000 per caregiver and would be allocated directly to the caregiver for 50% of their total out of pocket spending in a tax year.
• To qualify for the caregiver tax credit, the caregiver would have to:
  • Be caring for an individual aged 18 years or over and require assistance with at least one activity of daily living (ADL), as defined per NYCRR Title 10 Section 69-10.1.
  • Qualify as a dependent spouse, parent, any blood relative, or partner as defined in state statute.
  • Meet the income eligibility requirements based on the Empire State Child Tax Credit program.
• The reimbursement program would provide a set amount of funding to the family caregiver to offset out-of-pocket spending, including up to 50% for home modifications and assistive technology.

MPA Council Commentary