H.R.2036 - Credit for Caring Act of 2025 (119th Congress)
Summary
H.R.2036, the Credit for Caring Act of 2025, introduces a tax credit for working family caregivers. This bill amends the Internal Revenue Code of 1986 to provide financial relief to eligible caregivers who incur qualified expenses while caring for qualified care recipients. The credit is equal to 30% of qualified expenses exceeding $2,000, with a maximum credit of $5,000, subject to income-based phase-outs and inflation adjustments.
Expected Effects
The bill aims to alleviate the financial burden on working families who provide care for their loved ones. It will provide a tax credit to offset some of the costs associated with caregiving. The credit is designed to help those with earned income above $7,500 and who care for individuals with long-term care needs.
Potential Benefits
- Provides financial assistance to working family caregivers.
- Recognizes the economic value of caregiving.
- Offers a tax credit to offset qualified expenses, such as respite care, counseling, and lost wages.
- Supports families in providing care for loved ones at home.
- May reduce the need for institutional care, benefiting both families and the healthcare system.
Potential Disadvantages
- The credit is subject to income limitations, potentially excluding some caregivers.
- The definition of 'qualified expenses' and 'qualified care recipient' may be restrictive.
- The phase-out based on adjusted gross income may reduce the credit amount for some families.
- Increased complexity in tax filing due to new credit calculations and documentation requirements.
- Potential for fraud or abuse in claiming the credit.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble). Congress has the power to lay and collect taxes to provide for the general welfare of the United States. This bill uses the tax code to provide a benefit to a specific group (family caregivers), which can be argued as promoting the general welfare. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).