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 act introduces a new chapter in Title 40 of the General Laws, allowing eligible family caregivers to claim a tax credit of 50% of their eligible expenditures, with a maximum credit amount of $1,000. This credit applies to all tax years beginning after December 31, 2025.

The act defines key terms, including "activities of daily living (ADL)," "eligible expenditure," "eligible family caregiver," and "eligible family member," outlining specific criteria for qualification. Eligible family caregivers must be resident taxpayers with a federal adjusted gross income of less than $50,000 for individuals and less than $100,000 for couples filing jointly, and they must have personally incurred uncompensated expenses related to the care of an eligible family member.

Eligible family members must be at least 65 years old or qualify for Social Security Disability Benefits, reside with the caregiver for at least six months of the taxable year, not live in an assisted living center or nursing facility, require assistance with at least two ADLs certified by a licensed health care provider, and be a dependent, spouse, domestic partner, sibling, grandparent, grandchild, or second-degree relative.

The act also amends Section 44-30-2.6 of the General Laws to incorporate the new tax credit into the existing personal income tax framework, specifying that the Rhode Island family caregiver tax credit shall be allowed as provided in the new chapter. The act is designed to take effect upon passage.

Statutes affected:
110: 44-30-2.6