Michigan Bill Proposes Tax Credit for Family Caregivers

Lawmakers advanced a proposal offering up to a $2,000 non-refundable credit for qualifying family care expenses.

Updated on Nov. 7, 2026 in Eldercare

Michigan Bill Proposes Tax Credit for Family Caregivers

Live Poll

Should Michigan offer a tax credit to family caregivers with out-of-pocket costs?

Michigan lawmakers have proposed an income tax credit covering up to 30% of qualified family care expenses, capped at a $2,000 non-refundable credit per caregiver. The legislation advanced unanimously out of the House Committee on Finance in June.

Why it matters

Over 1.5 million Michigan adults care for an older adult, and many caregivers face financial strain, including reduced work hours and depleted savings. The proposal would offer direct financial relief to those providing unpaid care.

In Michigan, 53% of caregivers were employed while providing care, and 23% increased their debts. The House Fiscal Agency estimates the proposal as introduced would reduce state income tax revenue by $80 million to $120 million annually, though that projection carries considerable uncertainty.

The players

Kathy Schmaltz

Michigan state representative from Jackson, a Republican who sponsors the family caregiver tax credit legislation.

John Roth

Michigan state representative and Republican co-sponsor of the family caregiver tax credit bill.

Cam Cavitt

Michigan state representative and Republican co-sponsor of the family caregiver tax credit bill.

Nancy Jenkins-Arno

Michigan state representative and co-sponsor of the family caregiver tax credit bill.

The details

The proposed credit would cover respite care, counseling, transportation, assistive technology, direct-care assistance, and home or vehicle modifications, with eligibility tied to substantial daily assistance or supervision needs. Rep. Kathy Schmaltz, R-Jackson, sponsors the legislation, with Reps. John Roth, Cam Cavitt, and Nancy Jenkins-Arno as co-sponsors.

June 2026: Bill advanced unanimously out of the House Committee on Finance.
2026: Connecticut approved a similar family caregiver tax credit.

Seasonal Patterns

Michigan's proposal follows the path of Oklahoma and Nebraska, which already offer family caregiver tax credits, and Connecticut approved its own version in 2026. Together these states reflect a growing legislative trend of using the tax code to ease the financial burden of unpaid family care.

If enacted, the credit would reimburse up to 30% of qualifying care costs, capped at $2,000 per caregiver, for expenses such as respite care, transportation, and home modifications. Caregivers with out-of-pocket costs for these services could see a direct reduction in their state income tax bill.

The takeaway

Family caregivers often absorb costs and lost income quietly, so tax relief tied to specific care expenses can help those who are balancing work and loved-one support. Michigan residents providing care should track qualifying receipts in case the credit advances.