Gov. Gretchen Whitmer recently proposed a new credit that could give eligible caregivers up to $5,000. The new caregiver tax credit from Michigan will be helpful for children with long-term needs or senior citizens who want to live in their homes but require expensive in-home care. Along with the caregiver tax credit, the governor proposed several other relief measures, including increased education investments, rebates for new car purchases, and more.
Caregiver tax credit from Michigan: who will get it?
In her annual State of the State address on Wednesday, Gov. Whitmer proposed a “Caring for MI Family Tax Credit” program that could give eligible caregivers up to $5,000 in tax credit. This credit, if approved, would be a much-needed relief for unpaid caregivers, who spend a significant amount of money from their own pocket when taking care of loved ones suffering from serious health conditions.
Unpaid family caregivers, on average, spend about $7,242 annually, according to a 2021 AARP study. The American Association of Retired Persons estimated that family caregivers provide about $522 billion in uncompensated care annually across the country.
The credit would allow eligible caregivers to write off transportation, counseling, respite and nursing services costs when they file their state return. Such write-offs would eventually allow more seniors to live in their homes and help parents take care of children with long-term needs.
“I know how tiring caregiving can be, especially when you’re juggling a career and kids of your own. When I was sandwiched between my newborn daughter and my mom who was dying from brain cancer, I was pushed to my limit despite having resources and help,” Gov. Whitmer said.
Whitmer’s caregiver tax credit from Michigan would require approval from the Democratic-led Legislature. The cost to the state of the Caring for MI Family Tax Credit is also not known yet. Gov. Whitmer is expected to share more details on the caregiver tax credit during her February 7 budget presentation for the fiscal year starting October 1.
What else did Gov. Whitmer propose?
In addition to the caregiver tax credit from Michigan, Gov. Whitmer proposed several other relief measures as well, including taxpayer-funded Pre-K and community college for all, a tax-funded program to invest in startups, a research and development tax credit, a program to boost job growth, a rebate for new car purchases and more.
Gov. Whitmer proposed increased investments in education, including free community college for all high school graduates and free preschool for 4-year-olds. Also, the governor called for more than billion dollars of investment to build or rehabilitate housing in the state.
Many of Whitmer’s proposed measures will require funding in the upcoming state budget. It will be interesting to see how soon Whitmer’s proposed measures will be brought before lawmakers. Many proposals that Gov. Whitmer called for last year, such as paid family and medical leave, aren’t approved yet and were not mentioned in Whitmer’s Wednesday speech.
