Bill
SB 2246
Rhode Island would offer a tax credit equal to 50% of eligible caregiver expenses, up to $1,000 per taxpayer, for unpaid family caregivers starting in 2027.
Purpose and intent
- Establishes a new Rhode Island personal income tax credit to assist unpaid family caregivers.
- Recognizes that a large share of home care is provided by family members and that caregivers incur meaningful out-of-pocket costs.
- Aims to relieve some financial stress on caregivers by providing a state income tax credit for eligible expenditures.
Key provisions and changes
- Creation of Chapter 44-30.4 (The Rhode Island Family Caregiver Tax Credit Act).
- Eligible expenditures (definition):
- Improvements or alterations to the eligible caregiver’s or eligible family member’s primary residence to support independence and mobility.
- Purchase or lease of equipment (e.g., durable medical equipment) necessary to assist with ADLs.
- Other caregiver expenses directly related to care, including:
- Hiring a home care aide
- Temporary respite care
- Adult day care
- Personal care attendants
- Health care equipment
- Technology
- Expenditures must not be reimbursable by health insurance and must not cover general household maintenance.
- Eligible family caregiver:
- Rhode Island resident with federal AGI under $50,000 (individual) or under $100,000 (married filing jointly).
- Has personally incurred uncompensated expenses related to care.
- Eligible family member:
- 65+ years old or with Social Security Disability benefits; lives with the caregiver in Rhode Island for at least 6 months; not in a facility; requires assistance with at least two ADLs; and is a specified relation (e.g., spouse, domestic partner, parent, grandparent, etc.).
- Credit amount and mechanics (effective for tax years beginning after 12/31/2026):
- Credit against Rhode Island gross income tax equal to 50% of eligible expenditures.
- Maximum credit per taxpayer: $1,000.
- If multiple caregivers claim for the same eligible family member, credit is allocated equally among claimants.
- Credit cannot reduce tax liability below zero; no carryforward to future years.
- The Rhode Island Department of Revenue will issue regulations to administer the credit.
- Tax code alignment:
- The act modifies existing Rhode Island tax law (44-30) to incorporate the new 44-30.4 chapter and adjusts related provisions to ensure compatibility with the new credit.
- Revisions require administrative rules and potential future adjustments via legislative recommendations every three years (per § 44-30-2.6 provisions in the broader tax framework).
- Effective date: Takes effect upon passage.
Who is affected
- Eligible family caregivers in Rhode Island who incur out-of-pocket caregiving costs meeting the statute’s definitions.
- Eligible family members (care recipients) who reside with the caregiver and meet age/impairment criteria.
- The Rhode Island Department of Revenue, which would implement and administer the credit through regulations.
- Taxpayers who itemize or take standard deductions remain subject to the state’s broader tax structure, but with the new credit reducing net RI tax liability where applicable.
Procedural/timeline notes
- Introduction date: January 23, 2026; referred to Senate Finance.
- For tax years beginning after December 31, 2026, the credit applies.
- The act requires regulatory promulgation to implement the credit.
- The sponsor and co-sponsors are listed; bill is scheduled for hearing/consideration (as of the action history).
Overall impact
- Provides a targeted financial relief mechanism for Rhode Island's unpaid family caregivers, potentially reducing out-of-pocket caregiving costs by up to $1,000 per eligible caregiver (50% of eligible expenses, capped).
- Encourages recognition of informal caregiving within state tax policy and may influence caregiver decisions and resources.
Compiled from official sources — confirm details with the bill’s official record.
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