S2246 creates the Rhode Island Family Caregiver Tax Credit Act and adds a new chapter to the state tax code authorizing a personal income tax credit for certain out-of-pocket caregiving expenses. The bill is aimed at resident taxpayers who provide unpaid care and support to an eligible family member, defined generally as a person age 65 or older or someone receiving Social Security Disability Insurance who lives with the caregiver for at least six months of the year, is not in an assisted living or nursing facility, and needs help with at least two activities of daily living certified by a licensed health care provider.
The credit would equal 50% of eligible expenditures, up to a maximum of $1,000 per tax year, beginning with tax years after December 31, 2026. Eligible expenditures include home modifications, durable medical equipment, home care aides, respite care, adult day care, personal care attendants, health care equipment, technology, and other directly related care costs. The bill excludes expenses that are reimbursable by insurance or government health programs and excludes general household maintenance. If multiple caregivers claim the credit for the same family member, the cap is split equally among them, and the credit cannot reduce tax liability below zero or be carried forward.
The bill also amends Rhode Island’s personal income tax statute to add the new caregiver credit to the list of allowable credits against tax. In practical terms, it changes state law by creating a new tax benefit within Title 44, Chapter 30, and by directing the Department of Revenue to adopt rules and regulations to administer the credit. Because the credit is nonrefundable and capped at $1,000, its fiscal effect is limited to reducing income tax liability for qualifying caregivers rather than generating refunds beyond tax owed.
The overall sentiment reflected in the bill text is strongly supportive of family caregivers. The findings section emphasizes the prevalence of unpaid home care, the physical and financial strain on caregivers, and the average annual out-of-pocket costs they bear, framing the credit as a targeted relief measure for households providing long-term care at home. No committee transcript or vote record was provided, so there is no recorded debate or formal vote history to indicate broader legislative support or opposition.
The main points of potential contention are eligibility limits and the scope of qualifying expenses. The income caps restrict the credit to lower- and moderate-income taxpayers, and the definition of eligible family members is limited to certain relatives or dependents living in the same residence. The bill also excludes reimbursable costs and ordinary home maintenance, which may narrow access for some caregivers. Another possible issue is administrative complexity, since the Department of Revenue must verify caregiving relationships, residency, medical certification, and expense eligibility.
The bill would add a new chapter to Title 44 of the Rhode Island General Laws establishing a nonrefundable personal income tax credit for family caregivers. It would also amend the state’s income tax credit provisions to expressly include the caregiver credit among the credits allowed against Rhode Island personal income tax liability. The Department of Revenue would be required to promulgate implementing regulations, and the credit would apply to tax years beginning after December 31, 2026.
The bill’s tone and findings are clearly favorable toward family caregivers, presenting the measure as a way to ease financial strain on residents providing unpaid care at home. Because no committee transcripts or vote history were provided, there is no documented floor or committee sentiment to assess beyond the bill’s supportive framing. On its face, the proposal appears to be a targeted tax relief measure with a sympathetic policy rationale.
Potential areas of contention include the bill’s eligibility restrictions, which limit the credit to resident taxpayers below specified income thresholds and to family members meeting residency, relationship, and disability/age criteria. The bill also limits qualifying expenses to those directly related to caregiving and excludes costs reimbursable by insurance or government programs, which could exclude some caregivers’ expenses. Administrative verification requirements may also be debated, since the state would need to confirm medical certification, household composition, and expense eligibility.