Snowe bill targets Alzheimer’s

WASHINGTON – U.S. Sen. Olympia J. Snowe has introduced two bills to ease the tax burden on caregivers and their families by providing a tax credit for those caring for relatives suffering from Alzheimer’s disease, a deduction for home care costs, and strengthening the dependent care tax credit.

“Appropriate care for individuals who need long-term care should be determined by that individual and their loved ones. For many, remaining at home is the best option. It permits them to remain with their loved ones in familiar surroundings,” Snowe said. “But we all know that too often, financial realities factor large in a family’s decision in this regard. My legislation will expand options for those needing long-term care and their families.”

Snowe said her bill is targeted toward families who care for a relative suffering from Alzheimer’s disease. Her measure will permit families to deduct the cost of home care, adult day care and respite care from their federal income taxes if care is provided to a dependent suffering from Alzheimer’s disease. “My legislation is a step toward lessening the financial and emotional cost of Alzheimer’s disease by providing relief to patients and their families,” she said.

Alzheimer’s treatment is estimated to cost $100 billion annually and costs businesses in the United States an additional $33 billion each year as a result of caregiver absenteeism, according to the Alzheimer’s Association. “Sadly, the number of those affected by this devastating illness is rising and will continue to rise dramatically, from 4 million today to more than 14 million by the middle of the century. But as staggering as these numbers are, they pale in comparison to the emotional costs the disease places on families,” Snowe said.

Snowe also introduced a bill to strengthen the dependent care tax credit, restoring the original intent of the credit to provide the largest possible benefit for low-income taxpayers. Snowe’s legislation will make the dependent care tax credit applicable to respite care costs, and make it refundable.

Snowe’s bill increases the amount of work-related expenditures deductible under the tax credit from 30 percent to 50 percent for families earning $15,000 a year or less, and then reduces the credit by 1 percent for each additional $1,000 of income to a minimum of 20 percent of expenditures for those earning $45,000 or more annually. Snowe’s legislation permits a deduction for respite care of up to $1,200 for a qualifying dependent, or $2,400 for two qualifying dependents.