The bill introduces "The Rhode Island Family Caregiver Tax Credit Act," which aims to provide a state income tax credit to unpaid family caregivers. The credit is designed to alleviate the financial burden caregivers face, as they 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. The tax credit is set at 50% of eligible expenditures, capped at $1,000, and is not refundable or able to be carried over to subsequent tax years. The Department of Revenue is tasked with establishing rules and regulations 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 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). The bill also details various tax credits, deductions, and adjustments, including changes to the Rhode Island earned-income credit and the introduction of the new Rhode Island family caregiver tax credit, which is marked by an insertion in the legal text. This credit would apply to all tax years beginning after December 31, 2024, and the act would take effect upon passage.

Statutes affected:
2375: 44-30-2.6