CONNECTICUT — March 18, 2026 — A Connecticut legislative committee advanced a priority affordability bill on Friday that would provide family caregivers with a state tax credit of up to $2,000 — the latest example of states stepping in to address a caregiving crisis that advocates say is costing American families billions of dollars each year.
The Finance, Revenue and Bonding Committee approved Senate Bill 1, a sweeping affordability package that includes the family caregiver tax credit provision alongside sales tax cuts on clothing, school supplies, and supermarket meals, as well as credits for renters. The full bill now requires floor votes in both the Senate and the House before the 2026 legislative session closes May 6.
Under the caregiver provision, Connecticut residents earning $50,000 or less annually would be eligible to receive a credit equal to 50 percent of qualifying caregiving expenses, up to a maximum of $2,000 per year. Eligible costs include respite care, medical equipment, home modifications for accessibility and safety, and the wages of personal care attendants or skilled nurses hired to assist a family member.
Legislation Built on a Growing Financial Reality
The bill’s advancement comes just days after the American Association of Retired Persons released new national research showing the full economic weight of unpaid family caregiving. If compensated, the work provided by unpaid family caregivers in 2024 would have equaled $10.7 billion in Connecticut alone — and $1.01 trillion nationwide.
“Caregivers are stretching their finances, sacrificing their own well-being, and too often, they are doing it alone,” said Dr. Myechia Minter-Jordan, CEO of AARP, in a statement accompanying the report.
On average, a family caregiver spends roughly $7,200 out of pocket each year to support a loved one — a figure that includes everything from transportation and medical supplies to structural changes to the home.
Natalie Shurtleff, advocacy director for AARP Connecticut, told legislators the expenses are relentless. “All of those things really add up,” she said.
Credit Design Targets Lower-Income Caregivers
The legislation was crafted as a tax credit rather than a deduction — a distinction that makes a meaningful difference for low- and moderate-income families. Deductions reduce taxable income; credits reduce the tax owed dollar-for-dollar and are more valuable to caregivers who do not itemize or have lower tax liabilities.
AARP Connecticut pushed for the credit structure specifically because many of the caregivers who bear the greatest financial burden are also those least likely to benefit from a deduction.
The Aging Committee had already moved forward a standalone caregiver tax credit bill — Senate Bill 285 — with a unanimous vote in March. Senate Bill 1 incorporates the same language into the broader affordability package, giving the measure two legislative vehicles.
Senate President Martin Looney said Senate Bill 1 “provides relief where families need it most, cutting taxes on clothing, school supplies, and groceries while providing tax credits for those caring for elderly or disabled relatives.”
Caregivers and Disability Advocates Testify in Support
During committee testimony, family caregivers and disability advocates urged lawmakers to broaden the bill’s reach. Donald McMenemy, who cares for a family member, asked legislators to consider raising the income ceiling. “I ask this committee to consider increasing the income limits so that more families like mine can continue to help support our loved ones in need of care,” he said.
Laura Hoch, a representative of the National Multiple Sclerosis Society, described the range of home modification costs that the credit would help offset. “Modifications can be as simple as installing a grab bar in the shower and have minimal costs associated; involve assistive technology at moderate expense; or can require much costlier structural changes,” she said.
Part of a National Movement at the State Level
Connecticut’s action reflects a broader national trend. At least 12 states have introduced caregiver tax credit legislation in recent years, according to AARP. Oklahoma enacted a credit in 2023, followed by Nebraska in 2024. At the federal level, the bipartisan Credit for Caring Act — which would create a non-refundable federal tax credit of up to $5,000 for qualifying caregivers — has remained stalled in the House Ways and Means Committee since early 2025.
With no federal action in sight, advocates have increasingly turned to state capitals to deliver direct relief. Connecticut’s SB 1 is among the most ambitious state-level efforts this session, bundling the caregiver provision into a high-priority bill with direct support from Senate Democratic leadership.
Shurtleff framed the investment in home caregiving as fiscally sound for state budgets as well as for families. “They keep their loved ones at home, out of nursing homes,” she said, noting that home care also “saves the state money because we’re not paying for nursing home care that’s often paid for by Medicaid.”
The bill still faces floor votes in both chambers before the session adjourns May 6, 2026.
Why This Matters for Home Care
Nearly 60 million Americans are providing unpaid care to a family member at home — managing medications, assisting with mobility, and adapting living spaces to meet changing needs. As state legislators increasingly recognize the financial burden this places on families, policies like the Connecticut caregiver tax credit signal growing public acknowledgment that supporting family caregivers is both a social priority and a health infrastructure issue. For families already investing in home care equipment to keep a loved one safe and comfortable at home, financial relief — however incremental — can make the difference between sustainable care and crisis. Families exploring home care options can find adjustable beds designed for both care recipients and caregivers at sondercare.com/beds/.
