S. 925: Credit for Caring Act of 2025

This bill, known as the Credit for Caring Act of 2025, aims to provide tax relief to family caregivers who are working while providing care for qualifying individuals with long-term care needs. Here’s a breakdown of how the bill is structured and what it entails:

Tax Credit for Caregivers

The bill proposes a new tax credit that allows eligible caregivers to receive a credit against their income taxes. Specifically, the credit would grant caregivers:

• 30% of their qualified expenses for caregiving, provided these expenses exceed $2,000.
• A maximum credit of $5,000 per taxable year, subject to adjustments for inflation starting in 2026.

Eligibility Criteria

To qualify for this tax credit, the caregiver must meet several criteria:

• The caregiver must incur qualified expenses for providing care to a "qualified care recipient."
• The caregiver must have earned income over $7,500 for the taxable year.
• The care recipient could be the caregiver's spouse or a close family member requiring long-term care (as defined by specific conditions outlined in the bill).

Qualified Care Recipients

The bill defines a "qualified care recipient" as someone who:

• Is related to the caregiver in specific ways, such as being a spouse or having a familial connection.
• Has been certified by a licensed healthcare practitioner as needing long-term care for at least 180 consecutive days during the year.

Qualified Expenses

Qualified expenses that caregivers can claim under this credit include:

• Expenditures for goods, services, and support that assist the qualified care recipient with daily activities and living needs.
• Costs related to human assistance, such as hiring direct care workers.
• Expenses for respite care, counseling, and support services related to caregiving.
• Travel costs directly associated with caregiving duties.
• Lost wages from unpaid time off due to caregiving responsibilities.

Income Limitations

The credit amount decreases for caregivers whose modified adjusted gross income exceeds certain thresholds:

• $150,000 for joint returns.
• $75,000 for single filers or married individuals filing separately.

The decrease is $100 for every $1,000 (or fraction thereof) over these thresholds, ensuring that higher-earning caregivers receive a reduced benefit.

Documentation Requirements

Caregivers must provide proper documentation to claim the credit. This includes the name and taxpayer identification numbers of the care recipient and the healthcare professional who verified the care recipient's status.

Effective Date

The provisions of this bill are set to take effect for taxable years commencing after December 31, 2024.

Relevant Companies

• AMGN (Amgen Inc.): As a company involved in biopharmaceuticals, Amgen could see increased demand for its products that support long-term care and chronic condition management.
• HSIC (Henry Schein, Inc.): This company provides health care products, including support technologies for caregivers, which may experience higher sales due to increased caregiver support programs.
• ABT (Abbott Laboratories): Abbott produces medical devices and diagnostics that could witness increased usage as caregivers seek better health management solutions for the recipients of their care.