The "Rhode Island Family Caregiver Tax Credit Act" establishes a tax credit against income tax for eligible expenditures incurred by family caregivers providing care and support to eligible family members. The maximum amount of the credit is one thousand dollars ($1,000) and will be available for taxable years beginning after December 31, 2025.

The act allows caregivers to claim a credit equal to fifty percent (50%) of eligible expenditures, which include costs related to home modifications, medical equipment, and other necessary expenses that assist in caregiving. The bill defines key terms such as "eligible family caregiver," who must be a resident taxpayer with a federal adjusted gross income of less than fifty thousand dollars ($50,000) for individuals and less than one hundred thousand dollars ($100,000) for couples filing jointly, and "eligible family member," who must be sixty-five (65) years of age or older or qualify for Social Security Disability Benefits, among other criteria.

The act also specifies that if multiple caregivers claim the credit for the same eligible family member, the maximum allowable credit will be divided equally among them. The credit cannot reduce a taxpayer's liability to less than zero and cannot be carried over to subsequent tax years. The Department of Revenue is tasked with promulgating rules and regulations necessary for the implementation and administration of the credit.

Additionally, the act amends Section 44-30-2.6 of the General Laws to incorporate the Rhode Island Family Caregiver Tax Credit into the existing personal income tax framework. The act takes effect upon passage.

Statutes affected:
5233: 44-30-2.6