US SB925

Creates a new tax credit equal to 30% of qualified caregiving expenses exceeding $2,000, with a maximum credit of $5,000 per year, for working family caregivers who have earned income above $7,500

Eligible caregivers must provide care for a spouse or family member certified by a licensed health care practitioner as having long-term care needs for at least 180 consecutive days, including inability to perform daily living activities or severe cognitive impairment

Qualified expenses include human assistance, assistive technologies, home modifications, respite care, caregiver training, lost wages for unpaid time off, and travel costs related to caregiving

Credit phases out by $100 for each $1,000 of modified adjusted gross income above $150,000 for joint filers or $75,000 for other filers, with both the credit cap and income thresholds indexed for inflation

Applies to taxable years beginning after December 31, 2024