Measure would provide tax credit for caregivers of relatives with severe disabilities
By THE STAR STAFF
Seeking to ease the financial strain on middle‑class families caring for relatives with severe disabilities, lawmakers introduced a bill on Wednesday to create a refundable tax credit of up to $5,000 for eligible caregivers.
The measure, House Bill 1476, would amend Puerto Rico’s Internal Revenue Code to establish the Refundable Tax Credit for Day‑Care Expenses of Persons with the Most Significant Impairments and Total Dependency. The credit would be available to formally employed taxpayers who have legal custody or direct responsibility for an individual with a severe impairment, including bedridden patients or people with late‑stage Alzheimer’s disease.
Supporters of the bill argue that the proposal responds to the soaring cost of high‑intensity care on the island. Market studies cited in the legislation show that hiring a private caregiver or nurse for daytime home care averages more than $4,811 per month, exceeding $57,000 annually. Specialized adult day‑care centers charge between $1,900 and $3,800 per month. Those expenses, lawmakers say, have forced many working professionals to leave the formal labor force or rely on informal care arrangements to support their loved ones.
To address concerns from the Financial Oversight and Management Board, the bill incorporates two fiscal‑control mechanisms. First, it creates a Caregiver Tax Relief Fund, financed by increased tax compliance resulting from the requirement that all deductible caregivers and day‑care centers be formally registered as merchants in the Treasury Department’s SURI system. Second, it establishes a dual verification process requiring certification from a licensed physician and an official evaluation by the Office of the Ombudsman for People with Disabilities (DPI by its initials in Spanish).
The credit would be limited to taxpayers earning less than $200,000 annually and would apply only to daytime care services that allow caregivers to remain employed. Permanent 24‑hour institutional care would not qualify. The bill also outlines an expedited administrative appeals process through the DPI for cases requiring further review of functional‑severity criteria.
To deter fraud, the measure imposes administrative fines of up to $10,000 and authorizes criminal referrals for any professional or citizen who falsely certifies a diagnosis or eligibility.
Lawmakers say the proposal aims to stabilize working families who shoulder the burden of caring for relatives with profound disabilities while navigating one of the most expensive care markets in the region.
