Caregivers Investment Bill

The Alzheimer’s Association supports passage of House Bill 751 and Senate Bill 386, the Caregivers Investment Bill, to provide up to a $500 Virginia tax credit to taxpayers with adjusted gross income between $5,000 and $50,000 who provide unreimbursed care to a disabled relative who requires assistance with two or more activities of daily living.

Background:

Family caregiving is a mainstay of chronic or long term care for dependent Virginians. Reinforcing family caregiving for dependent Virginians with disabilities -- including many older people who require long term care -- can make the critical difference between prematurely institutionalizing a family member or caring for that loved one in the home setting. The Commonwealth is experiencing a substantial increase in the number of elders with functional disabilities and younger people requiring long term care (currently, one of nine Virginians is over age 65 and one in twelve Virginians is disabled; those needing long term care services will double over the next 25 years). Most people with disabilities prefer to remain in their own homes.

Support for family caregiving -- when combined with proper education, guidance and social support -- reduces the likelihood of abuse and neglect. Moreover, it is sound economics because the longer the care recipient remains in the community, the less it costs Virginia to provide for care; Medicaid nursing home care and waivered programs are considerably more expensive than a tax credit.

The Caregivers Investment Bill would provide up to $500 in Virginia tax credit for low and middle income family caregivers (with incomes between $5,000 and $50,000) not receiving Medicaid-reimbursed community long term care services or living in a care facility. Caregivers could use the money to make a critical difference -- by purchasing respite care, permitting access to a specialist, buying needed equipment, making home renovations to accommodate disabilities, and more. The flexibility will allow the caregiver to best meet individual Alzheimer’s needs.

According to the Virginia Center on Aging, 27,464 Virginians would qualify under the Caregivers Investment Bill for an average tax credit of $381; 10,986 Virginians (40% of those eligible) would be projected to claim the tax credit for a fiscal impact of $4,185,514.

For more information, please read the Issue Brief page and the 1998 Legislative Updates page.