The "Rhode Island Family Caregiver Tax Credit Act" establishes a tax credit against income tax for eligible expenditures incurred by family caregivers who provide care and support to eligible family members. The act defines "eligible expenditures" to include home modifications, medical equipment, and other necessary expenses related to caregiving. The tax credit allows caregivers to claim 50% of eligible expenditures, with a maximum credit of $1,000.

To qualify, caregivers must have a federal adjusted gross income of less than $50,000 for individuals or less than $100,000 for couples filing jointly, and must have personally incurred uncompensated expenses related to the care of an eligible family member. Eligible family members include individuals aged 65 or older or those who qualify for Social Security Disability Benefits, who reside with the caregiver and require assistance with at least two activities of daily living.

The tax credit will be available for taxable years beginning after December 31, 2025. The act also includes provisions for the Department of Revenue to promulgate necessary rules and regulations for implementation. Additionally, it amends Section 44-30-2.6 of the General Laws to incorporate this new tax credit into the existing personal income tax framework. The act is designed to take effect upon passage.

Statutes affected:
5233: 44-30-2.6