The "Rhode Island Family Caregiver Tax Credit Act" establishes a tax credit against income tax for eligible expenditures incurred by family caregivers for the care and support of eligible family members. The act allows a credit of fifty percent (50%) of qualifying expenses, with a maximum credit amount of one thousand dollars ($1,000), applicable to all tax years beginning after December 31, 2025.

Eligible expenditures include costs related to home modifications, the purchase or lease of necessary medical equipment, and other caregiving services such as hiring home care aides or adult day care. The act defines "eligible family caregiver" as a resident taxpayer who provides care to an eligible family member and meets specific income criteria, while "eligible family member" includes individuals aged sixty-five or older or those who qualify for Social Security Disability Benefits and require assistance with at least two activities of daily living.

The bill also amends Section 44-30-2.6 of the General Laws to incorporate this new tax credit into the existing personal income tax framework, specifying that the credit will be provided as outlined in chapter 8.11.5 of title 40. The act is set to take effect upon passage.

Statutes affected:
5233: 44-30-2.6