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 defines "eligible expenditures" to include costs related to home modifications, medical equipment, and caregiving services, among others. Caregivers can claim a credit equal to 50% of their eligible expenses, with a maximum credit amount of $1,000. This credit will be available for taxable years beginning after December 31, 2026.

The act introduces new legal language that formally establishes the Rhode Island Family Caregiver Tax Credit within the existing tax code, specifically in chapter 30.4 of title 44. It outlines definitions for key terms such as "eligible family caregiver" and "eligible family member," and specifies that the credit cannot reduce a 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.

Statutes affected:
7241: 44-30-2.6