The bill introduces "The Rhode Island Family Caregiver Tax Credit Act," which provides a state income tax credit to unpaid family caregivers. The credit is aimed at easing the financial burden of caregivers who spend an average of $7,000 annually out-of-pocket on caregiving expenses. To qualify, caregivers must be resident taxpayers with a federal adjusted gross income below certain thresholds and must have incurred uncompensated expenses for the care of an eligible family member who meets age or disability requirements and resides with the caregiver. The tax credit is 50% of eligible expenditures, capped at $1,000, and is neither refundable nor carried over to subsequent tax years. The Department of Revenue is tasked with establishing rules for the credit's implementation and administration.

The bill also amends Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal Income Tax," updating definitions and tax rates for Rhode Island taxable income. It excludes certain increases in the standard deduction amount for married couples and sets Rhode Island personal income tax rates as a percentage of federal income tax rates prior to the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). The bill outlines tax brackets and rates for various filing statuses, addresses the Rhode Island alternative minimum tax, and includes provisions for capital gains rates, itemized deductions, standard deductions, and additional deductions for the aged and blind. It also specifies tax rules and adjustments, such as limitations on itemized deductions and exemption amounts, and introduces the Rhode Island family caregiver tax credit, marked by an insertion in the legal text, applicable to tax years beginning after December 31, 2024.

Statutes affected:
7490: 44-30-2.6