Home-based caregivers could be eligible for tax credit

Individuals providing daily care for an elder with a self-care disability would be eligible for a nonrefundable tax credit under a bill heard by the Revenue Committee Feb. 1.

LB264, introduced by Lincoln Sen. Kate Bolz, defines a qualified individual as someone whose income is between 250 and 500 percent of the federal poverty level. Bolz said she introduced the bill because encouraging home-based care would reduce the number of people receiving Medicaid-funded nursing home care.

“We have an aging population and cost-effective solutions must be found,” she said. “While tax credits are available for adult day care expenses, our tax code doesn’t acknowledge other contributions to elder care.”

Under the bill, a person would qualify for a $500 credit if they are the primary caregiver of someone who:
• is at least 65 years old;
• lives in the same residence with the caretaker;
• has a physical, mental or emotional condition lasting at least 180 days that makes it difficult to dress, bathe or get around inside the home; and
• has an income that does not exceed 250 percent of the federal poverty level.

A credit of $500 also is available to qualified caregivers of individuals making less than 250 percent of the federal poverty level and meets other established criteria.

Susan Campbell, a volunteer caregiver advocate, supported the bill, saying there are many hidden costs associated with providing home care to loved ones.

“My husband was diagnosed with cancer and insurance paid for much of his care,” Campbell said. “But necessities like special clothing and travel expenses for treatments, we paid for those out of pocket.”

AARP representative Mark Intermill also testified in support of the bill. He said home-based care is not only advantageous to caregivers and loved ones, but also the state.

“Every day the caregiver continues to function in that role, the longer we delay a person’s Medicaid dependency,” he said.

There was no opposition to the bill and the committee took no immediate action on it.