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 who meets specific age or disability requirements and resides with the caregiver. The tax credit is 50% of eligible expenditures, capped at $1,000, and is not refundable or carryover 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, "Personal Income Tax," updating definitions, tax rates, and the calculation of Rhode Island alternative minimum tax. It sets forth tax brackets and rates for various filing statuses and addresses the maximum capital gains rates. The bill includes provisions for itemized deductions, standard deductions, additional deductions for the aged and blind, and limitations on deductions for certain dependents. It outlines tax rules and adjustments, including limitations on itemized deductions, exemption amounts, and alternative minimum tax, all subject to inflation adjustments. The bill also specifies credits against Rhode Island tax for certain federal credits and introduces the new 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:
2375: 44-30-2.6