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 credit allows caregivers to claim 50% of their eligible expenditures, with a maximum credit of $1,000, applicable to all tax years beginning after December 31, 2026.

The act introduces new legal language in chapter 30.4 of title 44, which includes definitions for key terms such as "activities of daily living (ADL)," "eligible expenditure," "eligible family caregiver," and "eligible family member." Eligible expenditures encompass costs related to home modifications, medical equipment, and other caregiving-related expenses, while excluding items reimbursable by healthcare insurance or general household maintenance activities.

To qualify for the credit, an eligible family caregiver must be a resident taxpayer with a federal adjusted gross income of less than $50,000 for individuals or less than $100,000 for couples filing jointly, and must have incurred uncompensated expenses directly related to the care of an eligible family member. An eligible family member is defined as an individual who is 65 years or older or has qualified for Social Security Disability Benefits, resides with the caregiver, requires assistance with at least two ADLs, and is a dependent or relative of the caregiver.

The Department of Revenue is tasked with promulgating rules and regulations necessary for the implementation and administration of the tax credit. The act takes effect upon passage.

Statutes affected:
2246: 44-30-2.6