Sens. Capito and Bennet Introduce Bipartisan Bill to Give Family Caregivers a $5,000 Tax Credit
The Credit for Caring Act of 2025 is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Finance for review. No further actions are scheduled at this time, so the bill is waiting for the committee to decide on its next steps.
This bill has support from both parties and addresses a common problem, but tax changes are often difficult to pass on their own.
This bill’s path across every version that has carried it.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Small business owners who also serve as family caregivers may benefit from the tax credit, since they often lack employer-provided benefits like paid family leave. The earned income requirement of $7,500 is easy for most small business owners to meet, but the income phase-out limits mean the credit shrinks for higher earners.
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Polling data shows overwhelming bipartisan support for a federal caregiver tax credit. The Credit for Caring Act would provide a nonrefundable credit of up to $5,000, covering 30% of expenses over $2,000 for working caregivers earning at least $7,500 annually.
Advocates are hopeful that Congress may finally pass the Credit for Caring Act in 2025. The policy was included in the 2024 Republican Platform and endorsed by Donald Trump, providing momentum for the bill which offers a $5,000 credit for those providing $600 billion in unpaid labor.
Amidst proposed Medicaid cuts, many are hopeful the Credit for Caring Act will pass. Initially mentioned during the 2024 campaign, the bill would provide financial relief for out-of-pocket caregiving costs, though it remains under committee review in both the House and Senate.
No votes recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Credit for Caring Act of 2025
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