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 will be available for taxable years beginning after December 31, 2025.

The act defines key terms, including "eligible family caregiver," who must be 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. An "eligible family member" is defined as an individual who is sixty-five (65) years of age 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 home modifications, 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 allows caregivers to claim fifty percent (50%) of eligible expenditures, with a maximum credit of one thousand dollars ($1,000). If multiple caregivers claim the credit for the same family member, the credit will be allocated equally among them. The credit cannot reduce the taxpayer's liability to less than zero and cannot be carried over to subsequent tax years.

The act also amends Section 44-30-2.6 of the General Laws to incorporate this tax credit into the existing personal income tax framework, with the credit being provided as outlined in chapter 8.11.5 of title 40. The act takes effect upon passage.

Statutes affected:
110: 44-30-2.6