Parents and others who provide care for people with disabilities could be eligible for a tax credit under a new proposal.

A bill introduced in the U.S. House of Representatives this week would allow family members who care for older people and those with disabilities to receive up to $3,000 in tax savings annually.

“This is more than just another tax credit,” said U.S. Rep. Linda Sánchez, D-Calif., who introduced the legislation along with U.S. Rep. Tom Reed, R-N.Y. “This is about how we can help older adults and people with disabilities live independently in their own homes and communities.”

To be eligible, caregivers would have to be working and earning at least $7,500 per year.

The tax credit would offset expenses for everything from groceries to home modifications, transportation and hired help to care for individuals with long-term needs who can’t perform at least two activities of daily living like eating, walking, dressing or grooming.

Family members could qualify for providing care to a spouse, parent, grandparent, sibling, child, niece, nephew, brother or sister-in-law, or father or mother-in-law under the proposal known as the Credit for Caring Act.

“These families are making enormous sacrifices and oftentimes struggle to make ends meet. The expense of providing personal, at-home care can add up quickly. It’s only fair that we support our caregivers,” Reed said. “It’s a win-win. Families will stay together and those in need of assistance have access to better care.”

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