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 applies to tax years beginning after December 31, 2025.

Key definitions in the act include "eligible family caregiver," who is 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 who has incurred uncompensated expenses related to caregiving. An "eligible family member" is defined as an individual who is sixty-five (65) years or older or has qualified for Social Security Disability Benefits, resides with the caregiver for at least six months of the taxable year, does not live in an assisted living center or nursing facility, requires assistance with at least two activities of daily living (ADL), and is a dependent or relative of the caregiver.

Eligible expenditures include improvements to the caregiver's or family member's residence to ensure safety and mobility, the purchase or lease of necessary equipment, and other expenses directly related to caregiving, such as hiring home care aides or obtaining respite care. The credit is calculated as fifty percent (50%) of eligible expenditures, with provisions for allocation if multiple caregivers claim the credit for the same family member. The credit cannot reduce the 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. The act takes effect upon passage.

Statutes affected:
110: 44-30-2.6