Bill > HB5214

This bill creates a new tax credit for eligible family caregivers in Michigan, available starting in tax year 2026, which allows qualifying individuals to claim a credit of 30% of their qualified expenses or $2,000, whichever is less. To be eligible, a caregiver must be a Michigan resident who provides physical or financial care for a family member with specific care needs, has incurred at least $2,000 in uncompensated expenses, and has an adjusted gross income below $50,000 for single filers or $100,000 for joint filers. The eligible family member must be living in a private residential home and meet certain age and functional capacity requirements, such as being unable to perform at least two activities of daily living or requiring substantial supervision due to severe cognitive impairment. Qualified expenses include respite care, counseling, transportation costs, assistive technologies, home care aide services, medical equipment, and home or vehicle modifications to ensure accessibility, but exclude general household maintenance. Taxpayers must provide documentation of expenses and the family member's information when claiming the credit, and if the credit exceeds their tax liability, the excess will be refunded.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5214