The bill introduces "The Rhode Island Family Caregiver Tax Credit Act," which aims to provide a state income tax credit to unpaid family caregivers who are financially burdened by their caregiving responsibilities. The tax credit is intended to cover 50% of eligible expenditures related to caregiving, with a maximum credit of $1,000. To qualify, caregivers must be resident taxpayers with a federal adjusted gross income below certain thresholds and must be caring for an eligible family member who meets specific age or disability requirements and requires assistance with at least two activities of daily living (ADL). The credit is not refundable or carryover to subsequent tax years, and the Department of Revenue is tasked with establishing rules for its implementation. The bill also amends Section 44-30-2.6 of the General Laws in Chapter 44-30 entitled "Personal Income Tax," updating the definition of "Rhode Island taxable income" and the tax rates for various income brackets. It addresses the Rhode Island alternative minimum tax and provides detailed tax tables for different filing statuses. The bill includes insertions marked by and deletions by , although no specific deletions are noted in the provided text. It outlines tax rules and adjustments, including limitations on itemized deductions, exemption amounts, and alternative minimum tax (AMT). Additionally, the bill details various tax credits, deductions, and adjustments for Rhode Island taxpayers, including the new Rhode Island family caregiver tax credit, which is marked by an insertion in the legal text and applies to all tax years beginning after December 31, 2024.

Statutes affected:
7490: 44-30-2.6