The "Rhode Island Family Caregiver Tax Credit Act" aims to provide financial support to unpaid family caregivers who face significant burdens while caring for family members with disabilities. The bill establishes a new tax credit for eligible expenditures related to caregiving, which includes costs for home modifications, medical equipment, and necessary services. The tax credit is set at 50% of eligible expenses, with a maximum credit of $1,000 per caregiver, applicable for taxable years beginning after December 31, 2025. The legislation also includes provisions for the equitable division of the credit among multiple caregivers claiming for the same family member and stipulates that the credit cannot reduce a taxpayer's liability below zero or be carried over to future tax years.

In addition to the caregiver tax credit, the bill amends Section 44-30-2.6 of the General Laws to update the definition of "Rhode Island taxable income" and the tax rates imposed on such income. The definition now excludes the increase in the basic standard deduction for married couples filing jointly as provided in previous tax relief acts. The bill also specifies that, effective January 1, 2011, only the credits explicitly listed in the legislation will be allowed against the tax imposed, which includes existing credits like the Rhode Island earned-income credit and property tax relief credit. This act will take effect upon passage, ensuring that the new caregiver tax credit and the updated tax provisions are implemented in a timely manner.

Statutes affected:
5233: 44-30-2.6