LANSING, Mich. — A proposal to give Michigan family caregivers a break on their state income taxes is still parked in the House, months after it won unanimous approval from the House Finance Committee in June.
The bill would create a nonrefundable credit worth up to $2,000, covering as much as 30% of qualified out-of-pocket costs. AARP Michigan, which is leading the push, has made the measure a focus during National Family Caregivers Month in November.
Eligible spending under the plan includes respite care, counseling and support services, transportation, assistive technology, direct-care help, durable medical equipment, and changes to a home or vehicle. The person receiving care would have to meet eligibility rules, such as requiring constant supervision tied to severe cognitive impairment or heavy help with everyday tasks.
The costs are steep. AARP research puts average out-of-pocket caregiving spending above $11,000 a year, close to a third of household income. For households under $40,000 a year, caregiving eats up an average of 76% of income, and families caring for someone with dementia spend almost $16,000 annually.
AARP counts upward of 1.5 million Michiganders caring for loved ones without pay, labor it values at $27 billion a year. A 2025 study from the National Alliance for Caregiving and AARP showed 53% of Michigan caregivers hold jobs while giving care; 23% took on more debt, 21% drained short-term savings and 35% stopped saving altogether. About 24% spend 40 or more hours a week on caregiving.
Supporters argue that keeping relatives at home is cheaper for the state than nursing facility care. Michigan would join Oklahoma and Nebraska, which already offer similar credits, and Connecticut, which approved one this year.
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