Credit for Caring Act will provide much-needed financial relief to family caregivers
WASHINGTON, D.C., March 11, 2025 — The Alzheimer’s Association and the Alzheimer’s Impact Movement (AIM) are proud to support today’s bipartisan introduction of the Credit for Caring Act. This important legislation is a great step forward to providing much-needed financial relief to family caregivers across the nation, including those caring for people with Alzheimer’s and other dementia. The Alzheimer’s Association and AIM are proud to work with bipartisan members in the House and Senate, as well as AARP, to advance this bipartisan legislation.
The bipartisan Credit for Caring Act will create a new, non-refundable federal tax credit of up to $5,000 for eligible family caregivers to help meet this need. Eligible caregivers, with an earned income of at least $7,500 for the taxable year, would receive the tax credit if their care recipient meets certain functional or cognitive limitations or other requirements certified by a licensed health care practitioner. Individuals with higher incomes would either be ineligible for the tax credit or receive a reduced amount.
“While many of the over 11 million Alzheimer’s caregivers value their essential role in maintaining the quality of life for their loved ones, caring for those living with dementia often takes a significant financial toll on families,” said Robert Egge, AIM president and Alzheimer’s Association chief public policy officer. “The Alzheimer’s Association and AIM are proud to support the bipartisan Credit for Caring Act, which will help alleviate the financial challenges of caring for a loved one with this devastating disease. Thank you to the bipartisan congressional champions for standing up for our nation’s caregivers, and we look forward to working together to swiftly pass this bill into law.”
In 2023, Alzheimer’s caregivers provided 18.4 billion hours of unpaid care, valued at nearly $350 billion. In 2021, dementia caregivers bore, on average, $12,388 in out-of-pocket costs on behalf of the person living with dementia. As a result of this financial strain, many families significantly cut back on savings contributions and other spending, some reporting eating less due to care costs.
Of the total lifetime cost of caring for someone with dementia, 70% is borne by families — either through out-of-pocket health and long-term care expenses or from the value of unpaid care. These out-of-pocket costs include medical care, household expenses for their loved one, and respite services. With 41% of caregivers having a household income of $50,000 or less, there is an urgent need to alleviate the overwhelming costs faced by caregivers.
Introduced in the House by Reps. Mike Carey (R-Ohio) and Linda Sanchez (D-Calif.), and in the Senate by Sens. Michael Bennet (D-Colo.) and Shelley Moore Capito (R-W.Va.), the bipartisan Credit for Caring Act would offset the cost of some caregiving expenses such as a home care aide, adult day services, home modifications, respite care or other supports that help them and their loved ones. Importantly, this bipartisan bill will help family caregivers who care for nondependents or who do not live with the loved one they are assisting.
“There is an urgent need to help with the staggering costs faced by our nation’s dementia caregivers,” said Egge. “The bipartisan Credit for Caring Act will provide real help to the many families caring for their loved ones. AIM looks forward to working with Congress and the administration to ensure this critical priority for America’s caregivers is enacted.”
